Cornwall Businesses Could Be Overpaying by 80% on Energy Bills – Are You One of Them?

Perfect storm of rising costs threatens local firms

Businesses in Cornwall are being urged to review their energy bills, as new figures suggest some could be overpaying by as much as 80%.

The warning comes from BusinessComparison, a price comparison website that helps companies save money on their energy, insurance and broadband. The company says many businesses are unknowingly on ‘deemed rates’ – default tariffs that apply when no formal energy contract has been signed. These rates can be up to 80% higher than those on negotiated deals, according to estimates from Ofgem.

Small changes, big savings

Data from BusinessComparison and its parent company Bionic shows that more than 60% of firms using their Digital Renewals service save an average of £500 annually. One in five businesses saved over £1,600 a year, particularly those who had rolled onto out-of-contract rates without realising.

Philip Brennan, Founder and Managing Director of BusinessComparison, said:
“Businesses in Cornwall and across the UK are being hit from all sides.
“We’ve just come through the cost-of-living crisis, we’re still dealing with the long tail of Brexit and Covid, and now firms are being hit with higher NICs.
“On top of that, and with no cap on business energy prices, many are unknowingly overpaying on their energy bills – some by up to 80%. It’s a perfect storm and it’s threatening the resilience of thousands of small and medium-sized businesses.”

Why so many are still overpaying

Despite the potential savings, 43% of small firms have never switched energy suppliers, according to statistics from the Federation of Small Businesses. Reasons include confusion over suppliers, loyalty to existing providers and concerns about how much effort it takes to change.

Philip added:
“Switching suppliers is one of the quickest ways businesses can cut costs right now. With bills rising and margins tightening, it’s a simple step that could make a big difference – so we’d urge firms to act now and potentially save big.”

No price cap for business

Unlike domestic customers, there’s no price cap on commercial energy, leaving companies more exposed to sudden rate hikes. Ofgem estimates that around 10% of microbusinesses are currently on deemed rates, meaning thousands could be paying far more than they need to.

With April’s rise in the National Minimum Wage and National Insurance Contributions already adding pressure, energy is becoming yet another growing cost that businesses can’t afford to ignore.

Businesses interested in comparing energy prices can find more information via BusinessComparison.