Ofgem release "State of the energy market" report
Friday 26th October 2018
In October, Ofgem’s ‘State of the energy market’ report was released, and at E2 we read the report with great interest. While there are some positives – the Big Six seeing a drop in their profits and market share fall, for example – overall our long-standing concerns about the business energy markets persist, and microbusinesses continue to get a raw deal.
Microbusinesses (businesses with fewer than ten employees or with a turnover no greater than €2m) can least afford wastage on energy cost, but continue to overpay. A quarter of such businesses remain on default or deemed contracts. For the uninitiated, a deemed contract is essentially a penalty contract, applying punitive rates to encourage users to commit to a reasonable, negotiated contract. There is no valid reason for a business of any size to be exposed to this additional cost.
E2 also read that, of those businesses who did switch via an energy broker last year, only 63% were satisfied with the service level. At E2, excellent customer service is at the heart of what we do. We enjoy a client retention rate of over 90%, and in 13 years of trading, virtually all our original clients are still with us.
Ofgem’s report reminds us that businesses of all sizes still need support in managing their energy costs effectively and efficiently. Those businesses are advised to contact E2 on 0203 002 2500, and ask our Energy Services department for a competitive electricity, gas or water quotation.