The energy market is failing Britain’s small businesses, as a new study reveals businesses are even scaling back staffing costs to compensate for rising energy bills.
The data also revealed SMEs are more concerned about the rising cost of energy and its impact on their business – than they are about the potential fall-out of Brexit.
More than three quarters of the small businesses surveyed have seen the cost of their energy supply rise by at least £100 per year with one in ten forking out an additional £500 or more.
Its third annual Powering the UK High Street Report, looking into the treatment of small businesses by energy companies, also found more than a third of micro-businesses have been forced to make staff redundant to reduce the cost of running their business, with half reducing staff hours to pay for their energy.
Utilita specialises in providing tailored energy packages for small businesses; customers won’t be turned down for low credit ratings and are charged no upfront deposits.
Despite Ofgem’s announcement of its strategic review of the micro-business energy market, two thirds of micro-businesses say they are still caught out with unexpected terms and conditions or costs when signing a new energy deal.
Shockingly, more than a third are still asked to make large upfront deposits to secure their supply or are being placed on high tariffs as they’re seen as a credit risk.
Utilita CEO, Bill Bullen, who commissioned the research, said, “We commissioned our first annual Powering the High Street report in 2017 as we knew many micro-businesses found it hard and costly to engage with suppliers to find a better deal on energy.
“We’ve learned 68% of businesses surveyed do believe their provider gives them a fair deal. Let’s hope this is a sign of things to come.
“But there is a lot of work to do, it’s still concerning to see so many businesses worried about the cost of their energy rising and payment pressures and how this impacts their workforce. Further still, almost a third of businesses are tackling inflexible payment terms and a quarter are asked to pay crippling rates. This just isn’t fair.”
Bullen added, “The country’s micro-businesses have a lot to contend with in today’s uncertain economy as business rates continue to climb and the power of the pound isn’t what it was – it is concerning that access to energy is such a huge concern for many.”