A new survey by Paragon Bank has found that 54% of small and medium-sized enterprises (SMEs) have raised their prices to cover the unprecedented rise in energy costs.
Surveying over 500 businesses, the study – conducted on behalf of the bank by Opinium – found that 90% of SMEs reported energy bill hikes at an average of 26.6% with 10% recording that their energy bills increased by over 50%.
The study follows new research published by Energy Systems Catapult on behalf of carbonTrack which found that SMEs in the West Midlands experienced energy bill increases of as much as 500% due to rising inflation rates and unprecedented energy bill increases.
To help mitigate these rising costs businesses reported implementing a number of measures with the most common action (54%) being increasing the prices of their goods, whilst another 26% reported they were considering doing the same.
Other measures include investing in greener equipment such as more energy efficient machinery (38%) and investing in renewable technologies such as solar panels (36%).
“The cost of energy has negatively impacted the majority of business throughout the UK, even with the Government support package. Businesses have responded in several ways, with price increases being the most obvious way to mitigate the increase,” said John Phillipou, Paragon Bank SME lending managing director.
“However, it’s also positive that companies have been looking at ways they can reduce their energy bills by making themselves more efficient. We have seen businesses invest in their operations with the addition of more energy efficient equipment, whilst we have also funded changes to premises, such as the addition of solar panels. These are positive steps towards a greener future.”