Almost two thirds (61%) of catering business heads were unable to identify that E or A readings mean estimated or actual, whilst more than a quarter (27%) did not understand the term unit rate.
The issue is not confined to micro and small businesses of 1 to 49 employees; almost the same number (1 in 6) of those employing 50 to 249 staff reported that they too don’t have the skills they need to make sense of their regular statements.
Those with the biggest issues included business people in Sheffield (60%) and Liverpool (40%) who said they didn’t understand the information provided on utility bills, and businesses in the manufacturing sector where a third (33%) confessed their ignorance.
The data also reveals that as many as 2.19 million businesses never, or only occasionally, check their energy bills. This is despite the fact that almost three-quarters (73%) of catering SMEs believe they pay too much for their utilities.
Whilst 21% of catering business decision makers cite lack of time for the reason they don’t double check the bill is correct, a further 29% simply trust that the total is likely to be accurate. Yet, Utilitywise’s own information shows over 60% of businesses are reliant on estimated bills.
Andrew Richardson, deputy CEO of Utilitywise, said: “Businesses need help to navigate the energy market. That starts with understanding your statements. The terminology can be confusing, but it’s important to get a handle on it because it impacts a business’ bottom line: if you don’t know that you’re paying an estimated bill you can be in for a nasty surprise.
“With more than 22,000 business customers, the team at Utilitywise believes passionately in making the energy sector easier to do business with. It shouldn’t be complicated, confusing or opaque. Instead, we strive to take the hassle out of managing your energy, and the first place to start is by making bills less baffling.
“That’s why we’re determined to help all businesses to get the skills they need to pay the bills. It’s why we’ve set out all the information businesses need to better understand their utility statements in our Utilitywise guide, and why we’re hosting tweet chats to answer common questions.”
Utilitywise has developed a guide which has been road tested by business owners. As part of its Utility Management Plan service Utilitywise help customers avoid the pitfalls, which can cost time and money.