A survey of business leaders published last month revealed some concerning insights.
It found that one in five business people do not understand even the most basic aspects of their energy bill, and consequently are paying higher prices than they should be.
The findings paint a bleak picture of energy intelligence within British businesses. A massive sixty per cent of business leaders are unable to distinguish between estimated and actual readings when reported on their energy bills.
The report also found that a quarter of business people don’t understand the term unit rate, the most basic element of energy pricing.
Paul Rafis, head of energy procurement at Business Gas.com, finds cause for concern among these findings.
He said: “the energy market can be a confusing place at times, but if you want to get the most out of your businesses energy strategy then it’s crucial you have a basic understanding of the bills which find their way to your desk each month.
“If a business is trying to reduce its energy bills then you would think that a grasp of unit price would be a good place to start. Energy is likely one of the big monthly overheads which businesses are paying. If you want to remain competitive month on month and year on year, it is important that you take control and understand your energy bills.”
Gas Purchasing Made Simple for SMEs
Many of the businesses surveyed were small and medium sized firms of between 1 and 50 employees. But the results also revealed that many large firms were ignorant about even the most basic terminology.
Paul continued: “it’s not only large energy intensive industries which have to worry about implementing an energy purchasing strategy. Smaller firms get a competitive edge when they manage their energy outgoings more effectively. But this is by no means easy.
“This report also highlighted that as many as three quarters of SME business leaders believe that they are paying too much for their gas and electricity. Cutting these costs is vital to the survival of modern firms.”
New Gas Buying Guide for Small Firms
Here at Business Gas.com we are committed to helping businesses of all sizes understand and tackle their oversized energy bills. Next week we will release a special buying guide catering specifically for SMEs.
This guide will help small business leaders understand the gas buying market and will help them develop a fixed-price gas purchasing strategy to suit their business.