While utility bills are always on the increase, new research suggests that small businesses could be doing a lot more to find better deals from energy suppliers.
According to the study conducted by UK energy and water consultancy Utilitywise, around 75% of small business leaders cannot easily keep track of how much electricity, gas and water is being used.
On top of this, more than half of SMEs (52%) have no idea at all how much they spend on energy, with 66% of companies choosing to delegate this responsibility to managers and other members of staff.
These findings seem surprising considering the fact that rising energy bills is the main source of cost inflation for most businesses.
Utilitywise Director Michael Dent believes the findings of this research have revealed the fact that many small businesses get confused when it comes to finding the best deals on their utilities.
He said: “Misinformation and misunderstanding means small businesses are suffering because they don’t know how to navigate the utilities markets nor have the consumption necessary to act for themselves.
“Poor buying and management of utilities stops growth and damages businesses’ bottom lines.”
SMEs confused about energy bills
From not understanding the difference between a fixed and flexible energy contract to lacking the know-how about navigating the energy market, there are a number of reasons why small businesses might settle when it comes to utility providers.
Around of quarter of the business leaders questioned were resistant to switching energy suppliers due to concerns about finding a trusted organisation, while around 20% said they simply did not have enough time to research any alternative set-ups and cheaper opportunities.