"In the 1990s, when the Government should have tackled the future energy supply problems in the UK, they were too busy finding ways to increase taxation by stealth," said Colin Beake, Managing Director of Utility Options, which seeks out utilities deals on behalf of FPB members. "The problem we have in the UK is that we have been enjoying reasonable energy prices from North Sea gas and oil, with normal extraction and transport costs dictating the price. However, in Europe the monopoly energy providers have been charging high prices for years. Therefore as our dependence on energy from Europe increases, the price we pay for our gas and electricity will increase."

The owner of British Gas, Centrica, has released the findings of a survey suggesting that energy prices will rise by as much as 40%. It identifies two reasons for the projected surge in energy costs: the UK is now dependent on foreign energy imports from Europe, which means that gas prices cannot fall lower than those on the continent. In addition, the coupling of oil and gas prices means that when the oil price rises, the price of gas follows suit.

Energywatch, the independent gas and electricity watchdog, is being amalgamated into a new national consumer council called Consumer Focus, which will deal with energy and post. Energywatch deals with 30,000 calls from small businesses per year and has built a reputation for fighting the corner of smaller firms. Its disappearance is likely to bring more misery for small businesses. The FPB is concerned that, when Energywatch is disbanded, the service for small businesses will be significantly reduced.

A survey carried out by Bibby Financial Services in 2008 found that 79% of respondents are feeling the effects of rising fuel costs, while 52% are already passing the added fuel costs onto their business customers. The research shows that small businesses can no longer absorb increasing costs.

While oil prices may have dipped slightly recently, there is still trouble ahead. Smaller firms can cut costs through the FPB's partnership with Utility Options which allows small businesses to save time and money on their utilities.

The FPB is urging small businesses to act now and reduce the damage by finding the best deal through Utility Options. Further information is available by calling the FPB on 0845 130 1722, or via the website at: www.fpb.org.