Love Energy Savings reports a surge of +17% in business energy switches during the UK COVID-19 lockdown period, in comparison to the same period last year. Switches to Big Six energy suppliers increased by 84% while switches to renewable energy tariffs decreased by 14%.
Many companies saw the quieter period during lockdown as an opportunity to explore cost-cutting measures. With companies adapting to the new way of working, tariffs that may not have been suitable pre-lockdown, such as Economy 7, Economy 10 and smart meters, may now actually save businesses significant amounts of money, especially if they have staggered starting hours or new opening times.
The Big Six have taken the lead
Figures according to switches made with Love Energy Savings suggest that businesses opted for more security around their energy suppliers, with switches to Big Six suppliers increasing by 84% in comparison to last year. With cost being a key driver in tougher economic times, the Big Six capitalised on their built-up trust and doubled down with their businesses offers during the lockdown, alongside regular communication with their customers. However, smaller energy suppliers should not be overlooked as they are often competitive on pricing and can be quite nimble when it comes to implementing technology that improves customer experience.
A step away from renewable energy?
Smaller businesses have looked to cost-cutting measures to sustain profitability, temporarily abandoning their mission to become more carbon neutral. Switches to renewable energy suppliers are down by 14% throughout 2020, with the perception that green energy costs more – although this messaging seems to be changing.
On a macro-level, the UK has set new records for renewable energy generation in 2020, securing a much larger slice of the energy mix, hitting highs of 44.6% in the second quarter. Despite this being largely down to the reduction in demand, this is a good step forward for UK energy and businesses who seek green energy tariffs to support their CSR efforts – which will be prevalent in their Streamlined Energy and Carbon Reporting (SECR) guidance reporting, implemented by the Government in April 2019.