Procurement · 7 December 2015

FSB launches new service to help small businesses reduce energy costs

Small businesses spend an average of £4,243 on energy per year.
Small businesses spend an average of £4,243 on energy per year.

The Federation of Small Business (FSB) has unveiled a new service to help small firms save money on energy costs by comparing tariffs and switching suppliers.

Those members of the FSB that use the new service have been informed that they could reduce their gas and electricity costs by almost one quarter. Businesses which are part of the association currently spend an average of £4,243 on energy per year.

The FSB’s operations director Dave Stallon said: “Energy is an increasingly important issue for smaller businesses. There are many ways they can make substantial savings through the implementation of energy efficiency measures as well as ensuring they get the best tariff they can on their gas and electricity.”

“Many smaller businesses, however, either don’t believe they can make substantial savings or haven’t trusted the market and the system enough to engage in the process. Our new service is designed to give smaller business owners easy to use advice they can trust, to enable them to make savings with the minimum of fuss.” he added.

Research carried out by the FSB in 2014 revealed that the majority of small businesses find it hard to compare tariffs – while some 43 per cent of small businesses have never switched energy provider.

Wholesale gas and electricity prices have been falling in the UK over the last year – though domestic and business energy bills have fallen more sluggishly.

Research by comparethemarket.com carried out at the begining of December showed that average consumer energy bills have fallen by 14.8 per cent in the last year, following previous increases.

But government statistics published in October showed that pre-tax electricity prices in the UK are still the highest in Europe. And some 65 per cent of Scottish small businesses saw overall costs rise in the 12 months leading up to October 2015, according to research carried out by Clydesdale Bank – with energy costs causing some of the greatest concern.

The FSB is also encouraging small enterprises to increase energy efficiency in order to further lower costs – following recent research suggested that 90 per cent of its members wanted to use electricity and gas more sustainably.

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ABOUT THE EXPERT

Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics – as well as running a tutoring company.

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