“The business electricity market has become hugely competitive and you’ll only find a better deal by shopping around.”
The cost of electricity is a major concern for most small businesses across Australia, but many are not helping themselves by failing to shop around for the best rates.
A Canstar Blue survey of more than 500 small businesses revealed average quarterly electricity bills of $1260.
Two-thirds of business managers or key decision-makers who took part in the survey (66%) admitted the cost of electricity is a “major concern” to their business, with a similar number (67%) believing they could probably get a better deal by shopping around.
“Time is money in the world of small business, and unfortunately many small businesses risk wasting money because they don’t find the time to compare energy offers,” said Head of Canstar Blue Ms Megan Doyle. “It’s easy to fall into the trap of assuming you’re getting a good deal, especially when the business is busy with its day to day activities.
“Businesses will always look at ways to trim the fat and reduce costs, but seemingly few are thinking about one of their greatest expenses – energy. The business electricity market has become hugely competitive and you’ll only find a better deal by shopping around.”
The Canstar Blue survey, conducted in August 2016, found that fewer than half of businesses (48%) annually compare energy offers to try and find a better deal. This is despite eight out of ten businesses (80%) actively trying to reduce their electricity usage to save money on bills.
“Businesses are trying hard to reduce their energy usage, but not many are trying to solve the problem at its source,” added Doyle. “Whether it’s for your home or business, switching electricity providers isn’t as hard as it’s perceived to be, so businesses should be more proactive in searching out the best deals.”
Highest rated providers
Small businesses were asked to rate their existing electricity provider across a number of important variables, including customer service, payment plan options, billing clarity and overall customer satisfaction.
Four major retailers featured in the results, with EnergyAustralia leading Origin, AGL and Synergy in the overall rankings. EnergyAustralia replaces AGL after two years at the top of the table.
“Good customer service and billing clarity are hugely important to small businesses, but above all else they want to know that they are getting good value for money when they pay for electricity,” said Doyle. “This means having an energy provider that not only gives them a fair deal on the price they pay for power, but that generally makes the whole process as easy as it can be. This year, small businesses who use EnergyAustralia think they get the best overall deal.”
Inside Small Business
