Businesses in the north appear loathe to change their electricity provider, a survey shows.
For despite continuing to grapple with the cost of energy, some 42% of firms have never switched provider, according to the research by Red C Research on behalf of Budget Energy.
Its study of local SMEs found that among the main barriers to changing providers included the perceived time (42%) and effort (46%) involved, and the potential fees and penalties (40%).
And almost a quarter of businesses were concerned about disruption to their operations.
Despite the high numbers of businesses who have never changed electricity provider, the survey also found that 45% of these firms would consider switching in the near future. Of these companies, 90% said price plans are one of the main incentives for switching.
The findings come as a study from Enterprise NI and the British Business Bank reveal that 76% of Northern Ireland’s SMEs are concerned about rising energy costs, while 87% of businesses have noticed an increase in utility prices.
Sean O’Loughlin, managing director at Budget Energy, the north’s third largest energy provider, believes businesses should consider switching provider to secure a tariff that’s tailored for their needs.
He said: “We know energy prices are a big concern for businesses across Northern Ireland at present, therefore, it was surprising to learn that almost half of firms have never switched provider.
“We are in a period when electricity providers need to be competitive on price. They are also acutely aware that the best way to retain customers beyond that first supply period is through the provision of excellent customer service.
“Often the alleged barriers to switching providers that businesses cite, such as the perceived time and effort involved, aren’t a true reflection of the reality of switching, but work needs to be done to make firms aware of the benefits they can unlock through changing suppliers.
“It’s important for businesses to be on a tariff that is right for their needs and staying with the same provider may not be the best way to achieve this.”
For businesses who change providers more regularly, the survey found the main drivers are better rates and price plans along with improved customer service.
But it also found some businesses in Northern Ireland are so ‘risk averse’ they are ‘willing to tolerate higher prices’ than face the perceived challenges of switching.
