Only half of all convenience stores get ‘fair’ utilities deal

Convenience retailers are paying too much for their utilities with only 46% saying they get a fair deal and three in five saying they struggle to compare tariffs.

The news from energy provider Utilita comes soon after the government stepped up efforts to force utilities providers to give micro-businesses a better deal. In late June it was announced that suppliers would be banned from rolling small retailers over onto more expensive tariffs.

To get the best value for money on utilities, retailers are recommended to shop around frequently. However, the new survey by Utilita shows under half of all convenience retailers review their tariff once a year and that one in eight shop owners have never looked around for a better deal.

In an effort to promote switching suppliers, the Competition and Markets Authority ordered suppliers to list all business tariffs online or on a comparison site. Shaun Underwood, director of Utilita business energy suggests there is still room for improvement. “More needs to be done by the UK energy sector to provide these businesses – the backbone of Britain’s economy – with a fairer and easier solution,” he said.

While the changes to utilities tariffs for convenience retailers were welcomed by retailers, there are still issues regarding energy suppliers to address. One of the most prominent is the ability to backdate utility bills for businesses by as much as six years, a move ACS CEO James Lowman branded ‘unacceptable’ earlier this year. Energy regulator Ofgem is said to be considering a 12 month cap on back-billing.