Small and medium-sized firms have been urged to check their energy tariffs and compare them to the best deals on the market, following a new survey showing rising energy costs are impacting heavily.
The Energy Advice Line, the UK’s leading price comparison and switching service for energy consumers, said the majority of firms were feeling the effects of high gas and electricity prices and needed to switch supplier regularly.
The Close Brothers Business Barometer, a quarterly survey of SME owners and senior management across a range of industry sectors, found that more than half (59%) of UK SMEs were experiencing increased operating costs.
Over half of those firms said the increases were having a negative impact on their businesses, and of these firms almost two-fifths said that rising energy costs were creating the biggest problems for them.
Julian Morgan, managing director of the Energy Advice Line, said it was no surprise that spiraling business gas and electricity prices were still placing significant pressure on firms, which were also struggling with the cost of raw materials and stock, according to the survey.
“Our work with businesses across the UK echoes the results of this survey,” Mr Morgan said. “Despite positive news about the economy and an improved financial outlook for many SMEs, significant pressures remain,” Mr Morgan said.
“Many small and medium-sized firms are only just beginning to realise that energy costs are now a significant portion of their overheads and therefore need to be monitored closely.
“This survey supports our view that SMEs need to regard energy companies in exactly the same way as they do all their other suppliers. That means shopping around, switching to the best tariffs and keeping a careful eye on the market to ensure they are always on the cheapest deal.”
Mr Morgan said it was surprising that contrary to the advice of Ofgem and energy experts, the vast majority of SMEs remained with the same business energy supplier year after year, losing out on potential savings to be made by switching.
“Most businesses seek out a number of quotations for supplies like stationery and office equipment because it makes obvious financial sense to find the best deals and avoid paying above the odds,” Mr Morgan said.
“Surprisingly, this logic doesn’t necessarily prevail when it comes to choosing an energy supplier.
“Some firms find the whole issue of energy too hard and ignore the need to shop around, while other firms falsely believe that all suppliers and tariffs are roughly the same. Both of these things are untrue.
“Using an independent and reputable switching service takes all the legwork out of shopping around, and most businesses are very surprised at the size of the savings to be made by switching. It’s just good business practice.”
The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.
The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.
For further information visit www.energyadviceline.org.uk