Opus Energy: Business Boost Report

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The Business Boost Report

November 2014



Contents

Introduction ............................................................................................................................................ 3

Key findings ............................................................................................................................................. 4

Business optimism .................................................................................................................................. 5

Are the UK’s SMEs growing? ............................................................................................................... 5

Where is budget focused? .................................................................................................................. 5

Pressed for time .................................................................................................................................. 6

In need of a boost? ............................................................................................................................. 6

SMEs and energy ..................................................................................................................................... 7

How do SMEs find the best energy deal? ........................................................................................... 7

Choosing an energy supplier ............................................................................................................... 7

How often do SMEs switch energy supplier? ..................................................................................... 8

Conclusion ............................................................................................................................................. 11

2



Introduction

For more than a decade, Opus Energy has supplied energy exclusively to businesses and is one

of the UK’s leading independent energy suppliers. It now supplies more than 200,000 businesslocations across the UK and also purchases power from over 1,300 renewable generators in the

UK which it then supplies to its customers.

Small and medium-sized enterprises (SMEs) are the engine room of the UK’s economy, and

make up a large proportion of our customers. We have a continued commitment to provide

SMEs with the products and services they need through excellent customer service, flexible

products and accurate billing. This has been demonstrated recently as we have:

• Been independently ranked first for customer service for small and medium-sized

businesses by Datamonitor, and

• Accredited with ‘Putting the Customer First’ from Customer First UK Ltd.

• In addition, in the year to March 2014, we increased the energy supplied to SMEs

generated via renewable sources to 91% of our total energy provision. This compares

favourably against a national average for all UK energy suppliers of just 17%.

As part of this continued commitment to SMEs, we commissioned research among 500 UKSMEs to gain an understanding of business confidence, how they are feeling about the future

and to examine attitudes towards energy purchasing and management. We plan to use the

findings of the research to help guide our development of new products and services for SMEs

and ensure we best meet their bespoke needs.

We hope you find the contents of this report useful and thought-provoking. If you have any

queries on the issues raised please get in touch.

Louise Boland

Director

Opus Energy

3



Key findings

• UK SMEs are cautiously confident about the future, with 56% saying the long-term future

of their business looks optimistic.

• However, SMEs are time pressured, with 71% having to cover multiple roles within their

business.

• 57% of SMEs would welcome a boost to help their business grow or survive.

• Cost is the most important consideration for SMEs when choosing an energy supplier.

• However, when their contract is due for renewal, 81% of SMEs admit they do not shop

around different suppliers to check they’re on the best deal.

• More than one in ten SMEs (12%) have never switched energy suppliers.

• 78% of SMEs would like to be supplied with renewable energy.

• 44% of those with smart meters find that they help them keep track of their energy

consumption, helping them manage their energy better.

4



30%

35%

40%

45%

50%

55%

60%

Where is your budget for expansion focused?

Expansion

New product/servicedevelopment

Staffing

Running Costs

Business optimism

Are the UK’s SMEs growing?

• 54% of SMEs say their business has grown in the past year.

• Despite the fact that 51% are concerned for the future of their business, 56% of SME

owners and decision makers say the long-term future of their company looks optimistic.

• Half of SMEs predict their business will grow in 2015, but there are barriers that are

stopping SMEs growing as fast as they could.

Where is budget focused?

• More than half of SMEs are focusing budget on expansion for the next 12 months.

:

49%

50%

51%

52%

53%

54%

55%

56%What faces your company as a barrier to growth?

Lack of finance

Time pressure

Lack of skilled staff

5



15%

17%

31%

17%

10%

9%

1%

What do you predict will be the biggest boost for your business in 2015?

Increased access to finance

More/new staff

Increasing the skillset of existing staff

Lowering running costs

Introduction of a new product/service

Increased awareness as a result of

marketing/advertising/PR

Other

Pressed for time

• With time pressure identified as a barrier to growth, 51% of SME owners and decision

makers admit they can only plan for the short term – i.e. up to six months ahead.

• Nearly three-quarters of SME decision makers (71%) have to cover multiple roles within

their business as part of their job.

In need of a boost?

• 57% of SMEs would welcome a boost to help their business grow or survive.

• Nearly one-third of SMEs (31%) predict increasing the skillset of existing staff will be the

biggest boost for their business in 2015.

6



SMEs and energy

How do SMEs find the best energy deal?

• 81% of those responsible for energy in SMEs do not shop around with other suppliers

to check whether there are any better deals on offer when their contract is due for

renewal.

• Nearly a quarter of SMEs (24%) do not have an energy contract, and are being charged

out-of-contract rates.

Choosing an energy supplier

• The most important considerations for SMEs when choosing an energy supplier are:

1. Cost - 50%

2. Customer service - 36%

3. Reputation - 28%

0%

10%

20%

30%

40%

50%

60%

What are important considerations for you when choosing an energysupplier?

Cost

Customer Service

Reputation

Trust

% of energy that comes fromrenewable sources

Transparency

Not part of the Big Six

7



27%

37%

18%

4%

2%12%

When did your business last switch energy supplier?

Within the last year

Within the last 2-3 years



Over 10 years ago

My business has never changedsuppliers

How often do SMEs switch energy supplier?

• Just over a third of SMEs (37%) switched energy supplier within the last two-three

years.

• However, a further 36% have not switched within the last three years, and more than

one in ten SMEs (12%) have never switched energy suppliers.

Is clean energy important to SMEs?

• 78% of SMEs would like to be supplied with renewable energy:

o 40% say this is because it’s good for the environment

o 38% say this will help boost their business’ green credentials

Smart meters

• 51% of SMEs have smart meters installed – with uptake of smart meter installation

rising by 43% over the last two years.

• An additional 27% are considering getting smart meters.

8



• 44% of those with smart meters find that they help them keep track of their energy

consumption, helping them manage their energy better.

• However, 56% of those with smart meters have not noticed a difference in their energy

consumption – nearly a fifth of these either don’t know how to use the data obtained

from their smart meters, or don’t know where to find the data.

0%

5%

10%

15%

20%

25%

30%

35%

Do you have smart meters installed?

Yes, for more than two years

Yes, for less than two years

No, but I'm considering it

No, I'm not considering it

Don't know

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

If you have smart meters installed, have you noticed a difference?

Yes, it helps me keep track of my energy consumption

No, there has been nodifference in my energy buyingor consumption

No, I don't know how to use thedata

No, I don't know where to findthe data

Don't know

9



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

If you don't have smart meters installed, why not?

Costs of acquiring and installing smartmeters is too high

Unsure of benefits

Inconvenience of installation

Don't know how I would use the data

Other

• Among those without smart meters, the most common reason for their business not

making use of them is that they are unsure of the benefits to be gained from smart

meter usage.

10



Conclusion

It’s very encouraging to see that so many of the UK’s SMEs are showing ambition for growth in

2015. However, while the research highlights how the UK’s SMEs are optimistic about theirfuture, there are certain barriers that prevent them growing further.

With time pressure revealed as one of the primary barriers, many SMEs are missing out on

opportunities to save on their energy costs. It is important to ensure they don’t get stuck on

expensive out-of-contract rates, and they should be sure to ask their supplier for tools such as

smart meters to help them manage their energy costs.

As the report shows, so many SMEs are facing time pressure and would welcome a boost to

help their business grow. Opus Energy is offering the opportunity for one lucky SME to win a

marketing package worth £10,000, including:

• £5,000 advertising space

• A press advert created by a leading advertising agency

• A press pack produced by PR experts

• Helpful marketing advice from Opus Energy

To find out more and submit a business for entry, go to www.opusenergygift.com/boost

11

http://www.opusenergygift.com/boost




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Opus Energy: Business Boost Report