The survey results show a similar trend to the worrying lack of consumer engagement in the household energy market, recently highlighted by the Competition and Markets Authority in its ongoing sector-wide probe.
While the lack of household engagement has attracted strong political attention in recent years, the business supply market should also benefit from stronger competition, said deputy chief executive of energy advisory Utilitywise Andrew Richardson today.
“There has been much in the news about domestic customers switching to get better energy deals, which is positive in terms of building a competitive market place and educating consumers about energy. Businesses can do the same and there are real savings to be made,” Richardson said.
At a recent event at MoneySavingExpert.com energy secretary Ed Davey ackowleged that the business energy market is not immune to the lack of energy market competition.
“There are problems in the business market,” he said, adding that small businesses in particular need more support to engage effectively in the market and to manage energy efficiency options.
“More needs to be done,” Davey said.
The report found that 46 per cent of buisnesses fear the costs and fees attached to switching energy deal and the same percentage concerned over the increase in paperwork which would come as a result.
A not-insignificant 27 per cent were even concerned that switching might result in a gas or electricity supply disruption.
Richardson added that for many businesses switching tariff can be “daunting” and is more complicated for commercial enterprises which might have number of sites, meters and different contracts.
The report found that London is the most ‘switched on’ city when it comes to understanding the options for switching suppliers, while Liverpool has the highest majority of non-switching businesses.