Small firms 'spend more on business gas and electricity'

08/03/2010

Small firms are spending more money on business gas and electricity compared to larger companies, according to new figures.

Recent government statistics showed that energy prices for small and medium-sized enterprises increased by 15-17 per cent between the third quarter of 2008 and the same period of 2009.

This compares to a nine to 11 per cent increase for larger firms over the same period, and just five per cent for the UK's biggest businesses.

The Forum of Private Business (FPB) is now urging companies to take the time to research the market and search for better deals.

FPB finance director Nick Palin said the price increases shown were only "the tip of the iceberg".

"While the big energy companies always pass on wholesale price increases in full, the same cannot be said when prices fall," he said.

"By refusing to play fair some utilities giants have forced costs on small businesses they can ill afford."

According to the Confederation of British Industry, more than one-third of companies in London have switched their businesses gas and electricity supplier in the past year.

Switching suppliers can reduce business energy bills by as much as 50 per cent, according to the experts at Make It Cheaper. Find out how you could get impartial, comprehensive and free information about overheads such as business electricity.

Posted by Tom Barnett