Why charities may be over-paying for their gas and electricity…

As a leading commercial gas and electricity supplier, working with many of the UK’s high-profile charitable organisations, we often come across charities who are over-paying for their energy.

This is often due to one or both of the following reasons:

1. Employees and volunteers within charitable organisations are often incredibly busy, multi-tasking individuals. We’ve found that many charities simply don’t have the time to research their options, and as a result end up on rolling contracts with escalating annual prices. The assumption is often that the process of switching supplier is laborious and complicated, and as such, it is often overlooked.
2. Charities are often unaware of the reduced rate of VAT that they are entitled to, and if not informed correctly by their supplier, are paying 15% more for their energy than they need to. Too often, energy suppliers treat charities like small businesses and fail to recognise when an organisation qualifies for the reduced rate of VAT.

However, charities play a critical role in helping the most in need and saving costs on essential utility bills is critical to ensuring they are maximising their potential to help the people and communities they serve.

Reduced VAT for Charities

Over 2,000 charities registered in the UK are eligible for a VAT reduction. While the rate of VAT for most businesses is 20%, charities that are eligible pay only 5% representing a significant discount – particularly for those with multiple sites and far reaching operations. Charities/not-for-profit organisations may also be entitled to claim a refund on overpayments as far back as 4 years.

What can you do next?

Switching suppliers isn’t as difficult as you may think it is. It’s important to find an energy supplier that specialises in supplying energy to charities, who can guide you through the process, advise you on the best rates for you and help you with all aspects of rate reduction and VAT exemption.

If you’re a charity/not-for-profit and haven’t discussed your energy contract with your supplier for over a year, and/or if your bill includes 20% VAT charge, it could be highly worthwhile letting an expert take a closer look.

About United Gas & Power

We are a commercial energy supplier, specialising in the supply of electricity and gas to charities and not-for-profit organisations in the UK. Working with dedicated Account Managers, our customers have direct access to an expert who can help guide them through all aspects of contract renewal, supplier switching and VAT rate qualification. With easy-to-read bills, no hidden charges and a UK call centre we offer a bespoke service to charitable organisations – helping them save time and money, so that they can continue to help others.

Read about how we’ve recently helped Age Concern Slough and Berkshire to streamline multiple site energy contracts, align end dates and make dramatic cost savings. Click Here

For further information or to discuss how we can help you, call our Charities Hotline on 0113 532 4411 or visit Our charities page