Failing to compare electricity providers has come at a cost of £1,500 over six years for millions of UK households, a recent survey has revealed. The difference between the average standard variable tariff and the cheapest deal on the market is significant, but millions of businesses and households are not switching providers to access these savings.

Although households could save up to £300 per year if they switch suppliers, figures from the Office of Gas and Electricity Markets (Ofgem) show that over a third (35%) UK households did not change their gas or electricity provider between 2012 and 2017.

The YouGov* survey found that:

A third of UK household (33%) say they do not compare electricity providers because they believe all suppliers are the same and don’t see the point in switching.

65% people would read reviews when planning to spend £1,000, but only 16% read reviews about their new energy supplier or tariff when they last switched.

Business benefits: it pays to switch

The potential savings for businesses are also significant when they compare electricity providers and change suppliers. A growing competitive market presents businesses with the potential for simple savings, and shopping the market and comparing electricity prices can yield up to a 40% saving.

Tips for businesses and households to cut energy bills:

1. Staying with the same energy supplier means that you may be paying hundreds of pounds more a year for the same gas and electricity.

2. Check your energy tariff regularly and switch to a cheaper deal is one of the quickest and easiest ways to cut your bills.

3. Install a smart meter

4. Use an independent consultant to negotiate, procure, and compare quotes on your behalf.

So, what stops people from comparing electricity providers and switching? It’s time and effort. Although the savings are attractive, securing cheaper energy contracts for your business can be frustrating and time-consuming. At Smarter Business, we know that time is one of the most valuable resources for SMEs. As an independent consultancy, we leverage our long-standing relationships with reputable suppliers to ensure contract terms that save you money and are best-suited to your needs.

*YouGov surveyed 2,091 UK adults online on December 14-15.