Former Npower head of new business development Jon Davies has launched a new energy switching app for small businesses.
With price comparison sites predominantly focused on deals for households, Davies believes Switching Energy’s free app fills a gap in the market.
The company says it enables small businesses to obtain a quote, contract with the new supplier and switch within one transaction.
According to recent research commissioned by Ofgem, around one in four businesses (26%) remain on a rollover contract, which means they are likely paying well over the odds for energy. The report found the smallest firms (fewer than 5 employees) were most likely to let that happen.
The Competition and Markets Authority has suggested small firms are overpaying on energy bills to the tune of £500m per annum, with suppliers making up to four times the margin on small businesses than for large customers.
By simplifying price comparison and switching for small firms, Davies believes the app could drive engagement within the sector, lowering overheads for small firms.