Procurement · 10 October 2016

Suppliers fall short of small business owners’ expectations for renewable energy

renewable_energy
Some 72 per cent of small business owners expect more options for renewable energy from their supplier

Small firms in the UK expect more from energy suppliers when it comes to the provision and accessibility of renewable energy.

A new report has shown that 72 per cent of small business owners would welcome a stronger commitment to renewable sources from their supplier.

The research from energy provider Haven Power also revealed that just 11 per cent of small business owners rated their current supplier of energy as “excellent” in terms of the support offered for renewable energy options.

The importance of renewable energy to small firms looks to be increasing. It ranked highly, only after price and level of service, amongst factors that would lead a business owner to attempt to switch provider.

Commenting on the dissatisfaction of business owners, Haven Power chief executive Jonathan Kini said: “The sheer scale of the discontent revealed in this report remains shocking. SMEs want more from their supplier and a commitment to renewable energy is one of the demands they are pushing for.”

Power continued by urging the energy industry to commit itself to addressing the growing demands for renewable energy.

“There is fundamental change happening, and we in the energy sector need to respond to it by not only helping SMEs reduce their energy usage but also being able to supply 100 per cent renewable energy,” he said.

As well as falling short on the offerings of renewable energy, suppliers were also reported to be failing on value for money. The survey found that just 23 per cent of small business owners believed they were receiving the best value in their energy deal.

Further research has shown that small firms in Britain are overspending on energy costs by £82m each year, and that investment in renewable energy could cut spending.

A  joint project by Energy Efficiency Financing (EEF) scheme and Carbon Trust suggested that out-dated systems and inefficient equipment were the primary factors in the money wasted on energy.

Read our interview with renewable energy franchise Green Square.

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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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