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Business Electricity Customers Penalised For Being Loyal

Posted on February 2, 2024 by Ron Reginal

Gone will be the days when loyal customers were valued and given extra bonuses because of their loyalty. The retreat out of this practice began when companies operating in consumer markets and wanting to attract clients believed that offering reduced rates to clients alone would enhance their search for market share.

The biggest culprits were banks, insurance firms, telecoms and essential utilities. Each of them offered exceptional introductory rates in the hope that customers, usually tied in with direct debit accounts, and would neglect to spot the increases when it found renewal. And here we'd the inception of a fresh market model that is now today's norm.

The more loyal you became the more you pay.

But for individuals who dared to question the renewal rates or God forbid, shopped around, there have been the infamous 'save tools'. Suddenly there is grounds why the insurance provider could match the quotation received from the competitor.

Now it had been always believed that companies could not escape with such practices available to business sector. Businesses would look out of these dubious practices and would utilize the introductory offers to cut their costs, switching to a fresh introductory provide following year.

Well those that thought this were wrong.

First the banks begun to offer low or zero cost banking to clients without significant exodus following the first year. The others followed within their wake culminating in deals from the previously 'one price fits all' utilities.

And with their delight they discovered the true great things about business inertia.

Business electricity suppliers have adopted this worst practice - 'new customer only' pricing polices and the SAVE toolkit.

This has given business electricity suppliers a buffer where to recruit clients with a lot more attractive rates as the 'loyal' customer is forced to subsidise this new acquisition.

Customer loyalty counts for nothing.

Customers will be able to trust their business electricity supplier to provide them exactly the same price because they offer clients.

Businesses might have the final laugh!

Business electricity customers should be sure that they don't really accept hiked up renewal prices and insist that their current supplier gives their 'new customer' price.

Businesses should vote making use of their feet by rejecting the renewal prices, cancelling the prevailing supply contract by the end of term and make the incumbent supplier supply them with new customer prices.