Issue #71 - MBO mythbusting 👊
MBO energy misunderstandings | Community | How to choose a broker | Home or business energy - does it matter? | 5 businesses, 1 question | Words | Tunes | More
🦾 GO
Many micro business owners misunderstand energy 😕
Welcome to Issue #71 of The Backbone - the fortnightly newsletter from Bionic.
We’ve done some number-crunching and found that loads of micro business owners don’t know the differences between business and domestic energy.
But before we get into that, if you think you’re a small business owner but you’re now wondering whether you might run a micro business, the government will class you as a micro business (or a ‘micro entity’) if any two of the following points apply:
you have a turnover of no more than £632,000
you have no more than £316,000 on the balance sheet
you have 10 employees or less
Anyway, about those findings:
More than a third (37%) of micro businesses think that business energy has the same terms and conditions as domestic energy (it doesn’t)
A third (33%) think that contracts can be renegotiated at any time (they can’t)
Three out of five (62%) think that there’s a 14-day cooling-off period for business energy (there isn’t)
One in ten think that business energy contracts are not legally binding (they are)
But what does that matter? So long as someone is supplying your gas and electricity - and you can afford it - why should you worry?
One reason is that not lining up a new contract to start when your existing one ends, could see you hit with an expensive gap between contracts. This is because your supplier will put you on its out-of-contract rates - these are an average of 40% higher than contracted rates.
Even if you can afford it, that’s a big overpayment for the same energy.
We also found that one in five (20%) don’t know whether they’re out of contract - that’s a lot of businesses that could be overpaying.
Even if you line up a new contract, you could still have an expensive gap if there’s an objection to your switch. And there are loads more reasons why a business energy switch can be held up, compared to a domestic switch.
There’s no price cap on business energy, which makes it even more important to fix your rates and avoid price hikes. But if you sign a contract that’s not right for your business, you could still be out of pocket as there’s no cooling-off period, like there is with household energy contracts.
In short, sorting and switching business energy deals isn’t as straightforward as it is with domestic energy deals. That’s where a broker can help, but you need to make sure you go with a reputable one.
There are more than 1,500 energy brokers currently registered in the UK, and energy suppliers can only work with those who are signed up to an approved dispute resolution scheme. You can search the Energy Ombudsman website to make sure the energy broker you plan on using is on there, and this is where you can raise a dispute if you need to.
We’ll look into energy brokers later on in this issue, but first…
🗯 COMMUNITY
Exclusive access to the Small Business Hub 🗣
Small business owners are the superheroes of the high street. But small business owners rarely get their voices heard. Now there’s a place where they can chat, share advice and help each other through the lows and highs of running a business. To get involved, we just need your business email address (we won’t use it for anything else) and we’ll send you an invite.
🗞 READ
How to choose a utility broker 💡
Soaring energy prices and suppliers going bust have caused a lot of negative press for the energy industry in recent years. And some rogue brokers have also added to customers' dissatisfaction.
But business owners need suppliers and brokers that they can trust 100%. Check out this guide to find out all you need to know about energy brokers and how they can be useful for your business.
Home or business energy - does it matter? 🏭
Loads of micro business owners don’t know the difference between home and business energy - understandable, as they’ve got more important things to think about.
But the way business energy is bought and sold means that contracts are more complex and there are different rules when it comes to switching. And if you miss the key differences, you could find yourself out of pocket.
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🗣 SHOUTOUT
#BionicBusinessStory - 5 businesses, 1 question 🤔
Micro businesses are the backbone of our local economies and the heart of our local communities. A report from the Federation of Small Businesses shows how an average of 81% of these businesses have volunteered for or contributed to their local community or charity causes in the last three years. So we thought we’d find out why.
Bionic - Why do you think community is so important to small businesses?
🥐 “We have lots of regular customers who come every single day and we have conversations with them. So that means a lot to us, but being recognised by the community is also a big boost. We’ve been voted by the council as being the friendliest or best shop front in Kilburn.” Kadija Nakhli, Cheerio Juice Bar
🕯 “If you buy something from a local shop, you’re giving money to that business, which then pays local staff who support the local council who in turn organise things like Christmas lights and hanging baskets in the town centre. It’s like a knock-on effect of positivity, and it really matters to people. When I started doing Christmas markets, you’d see a business owner chatting to a customer about an item they’d made with their own hands, and they’d do a little happy jig when the customer made a purchase.” Richard Hills-Ingyon, The Recycled Candle Company
🐕 “I think it’s down to our culture in a way, you know, you’d go to the local butcher to get your meat for Sunday roasts, the local high street is part of our heritage. Supermarkets have gotten too big, and you see a lot of small businesses popping up now. People admire people who run small businesses.” Jane Bellamy, Jane Bellamy Dog Walking
🍫 “Smaller shops and businesses often support families, it’s not just a big, faceless company. Every sale counts in a local shop, that’s why it’s so important to show support.” Flo Broughton, Choc on Choc
💐 “Community is everything. Humanity is basically nice, on the whole, we’re meant to be together as humans. Being part of the community is my proudest achievement. It’s lovely to go onto ‘Spotted in Whitwick’, the local Facebook group and see that someone has recommended you as a florist to go to, it's great to get nice comments but being part of the community is so much more valuable.” Sue Colledge, Colledge Florists
Want to read more small business stories? Head over to Bionic 🦾
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🦾 BIONIC
Bionic - the business price comparison expert - compares a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms, and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
Jah reckons we rule ✌
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🎧 LISTEN
Playlist 🎶
It’s almost Spotify Wrapped season, so now seems as good a time as any to see what’s been on people’s playlists in 2023. Top Hits 2023 does exactly what it says on the tin - get a rundown of the year’s top songs from artists including Billie Eilish, The Weeknd, Glass Animals, Lady Gaga, and loads more.
Podcast 🎙
There have been a couple of interesting pieces on Today in Focus over the last few days. The AI safety summit and the downfall of Sam Bankman-Fried are both intriguing in different ways. But the one that really grabbed our attention was Why are Britain’s new homes so rubbish? - well worth a listen whether you own your own, rent, or are looking to get on the property ladder.
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🏡 HOUSEKEEPING
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🚫 STOP
Thanks for making it to the end of another Bionic small business bulletin 🤝🏻
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