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Small firms 'being hit hard' by rising energy bills - 01/11/2011

Many business energy customers may need to switch gas suppliers in order to get a better deal, as it has been stated that a large number of firms are finding price increases in this area a burden.

According to a survey by the Forum of Private Business, 94 per cent of its members have seen their costs for gas and electricity rise over the past year, with 74 per cent of companies saying that high expenditure is a barrier to growth.

Chief executive of the Forum Phil Orford said it is not surprising that energy is a major reason why many organisations are feeling the squeeze on their finances.

"The situation doesn't look set to change in the foreseeable future as all of the Big Six suppliers have put utility prices up in time for the peak winter season," he added.

Mr Orford therefore called on the government to offer whatever support it can to small and micro enterprises to help them cut costs.

Last month, a separate study by the Federation of Small Businesses found 57 per cent of its members said gas and electricity expenses are a problem.

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