Energy Costs Hit Small Businesses Hard – And Here’s What They’re Doing About It
How Much is the Price of Power Really Adding to the Bottom Line?
In a recent survey of 500 UK SMEs, almost a third of businesses are shelling out between £3,000 and £4,000 a year on electricity. A sizeable 24 % spend over £4,000. The big spenders sit in Yorkshire and the Humber, where annual bills top £5,000.
These numbers matter because energy can make up a huge slice of your costs: 65 % of companies spend 0‑20 % of their total expenses on power, while a shocking 8 % chew up 35‑50 %.
Why Do Energy Bills Drag on Growth?
- 70 % of owners say a high bill is a real brake on expansion.
- East Midlands firms feel it hardest – 78 % believe they’re locked out of growth for the same reason.
Barriers to Saving Money
Cutting spend is easier said than done. The study found:
- 31 % of owners don’t have time to tackle new green initiatives.
- 24 % say they can’t afford to invest further.
- 31 % feel they’re missing the data to know what to do next.
Government Helps – But Do Businesses Know About It?
There are tax reliefs, FIT schemes and capital allowances designed to make an energy‑efficient upgrade cheaper. Still, 37 % of small firms are unaware of those perks. More awareness could mean real savings.
What’s Working Already?
- 72 % use at least one energy‑saving tactic.
- 40 % flip over to LED lighting.
- 38 % power down production gear when the day’s done.
- 34 % run the smart meter to track usage.
And the payoff? Nearly one fifth are cutting £2,000‑£3,000 a year, with 35 % saving between £1,000 and £2,000.
CEO’s Takeaway
“Energy is a real headache for SMEs.” — Mike Elliff, CEO of Tyl. “If you can nudge the fridge and lights a bit, you cut costs and move the UK closer to net zero. Half the owners know they could do more, but money and info are in the way.”
Why You Should Pay Attention
Energy charges are climbing, but smart swaps can shorten the gap. Even a small tick, like turning off lights at night, can drop the bill significantly. For a growing business, that extra cash can be the difference between a stayed‑in‑place stall and an expanding empire.
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