British Gas has helped reduce the debt of more than 5,000 business customers by £15 million through its Small Business Advice and Expertise Service (SAVE) which supports businesses return to growth though energy efficiency advice and no interest repayment plans.
The SAVE scheme, which was set up 2.5 years ago, has responded to 17,000 enquiries for debt support or advice this year often from sound businesses who have fallen on hard times or incurred an unexpected cost for repairs or maintenance. This represents a 79 percent increase in enquires compared to the year before.
British Gas’s Expert Credit Solutions Team, which delivers SAVE, offer businesses general advice on budgeting and also energy saving advice and can arrange extended repayment plans for businesses with large amounts of debt. More than 1560 customers have already completed plans through SAVE which has seen their debt fall from an average of £4604 to just £169 – a total reduction of approximately £7 million. The team is currently supporting 3502 customers whose debt originally totalled £27 million, but with interest free repayment plans this has already been reduced by £8 million.
The role of the initiative in offering valuable support to struggling businesses has been recognised by leading business support organisations. Joanna Elson, chief executive of the Money Advice Trust, which runs Business Debtline said:
“Debt is a very real problem for many small businesses and sole traders and the number of businesses seeking debt advice over the past 12 months has increased. We are very pleased to be working with British Gas and their dedicated team on their SAVE initiative to support its customers facing financial difficulties. In our experience, the earlier somebody identifies a debt problem within the business, the quicker they can get back on track.”
Tina Ford, owner of the Just Relish sandwich bar in Chertsey, Surrey, is an example of a customer that has been helped get their business back on track through SAVE.
Mrs Ford contacted British Gas in March 2009 with difficulties paying her account balance. She explained that her business had been impacted by the economic downturn, and she couldn’t afford the monthly bills to clear the account balance at that time.
The SAVE team were able to support Mrs Ford by arranging a repayment plan that covered the cost of her monthly energy consumption and paid back her debt interest free over 18 months. By June 2011, Mrs Ford had paid off the outstanding balance, and was paying accurate monthly bills based on meter readings she was submitting to British Gas.
Mrs Ford, owner of Just Relish Sandwich Bar, said:
“Like many High Street Businesses, we found it tough when the recession hit. I had to admit that I was unable to pay my account balance in full so contacted British Gas to see if anything could be done to help. The British Gas team were very reasonable and understood the pressures we were under. They were able to arrange a repayment rate I could afford and thankfully we were able to pay off the balance in a little over a year. Things are still difficult on the High Street, but knowing that I am now always up to date with my energy payments is a weight off my mind and means I can focus on making my business a success.”
The SAVE initiative is part of British Gas’s ongoing commitment to listen to and support its smaller business customers during the economic downturn. In November British Gas launched its fair billing charter aimed at putting businesses in control of their energy use, ensuring they only pay for the energy they use and avoid unexpectedly large bills caused by supplier or industry errors.
At the centre of this charter is the industry leading commitment from British Gas not to back bill its micro-business customers further than one year by 2014 where British Gas or the industry is at fault. British Gas also plans to rollout 100,000 smart meters in 2012, in addition to the 200,000 already on its customers’ walls, allowing businesses to pay accurate bills based on accurate readings and become more energy efficient.
Marc England, Director of SME Energy at British Gas Business, said:
“Smaller businesses are the life-blood of the UK economy and their success is critical to its recovery. It is crucial for businesses like ours to have an honest conversation with our customers about their needs in the tough economic climate and help them manage their energy bills in the most affordable way possible. The SAVE initiative has helped thousands of businesses reduce their debts and get back on the road to growth. However, through our fair billing charter we are committed to helping businesses avoid getting into this debt in the first place by helping them stay in control of their energy use and become more efficiency conscious.”
