The research, published by energy risk management company Utilyx and investment bank Barclays Capital, shows that 74 per cent of industrial and commercial users finalised their most recent electricity and gas supplies in the three months prior to contracts coming into effect.
The research found that if they had secured their deals earlier, British companies could collectively have saved £1.06 billion.
Chris Bowden, chief executive of Utilyx, said: "Energy prices have risen by 30 per cent since the beginning of the year and are still rising, but many buyers have waited until the last moment to buy.
"Instead of assessing the risks of a rising market and getting their prices secured earlier when the price was lower, they have waited until the worst time."
The report found 55 per cent of the 98 buyers questioned had little idea of how to minimise their companies' exposure to energy price hikes by using "floating" contracts where prices follow monthly indices.
"You have companies that employ best-practice risk management for their exposure to foreign exchange and interest rate fluctuations, but have no idea about how to manage their energy risks.
"The staggering thing is that some of these companies have multimillion pound energy budgets," added Bowden.
Ian Dobson, chair of the CIPS energy committee, agreed with the report's key findings and questioned whether some energy buyers were trained properly.
Subscribe
Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.
Posted on 14th July 2005
Latest Posts
-
Labour's plan for economic growth must mean green growth – but there is a green skills gap looming
- 5th July 2024 -
As Labour plans to “slash red tape” for economic growth, YouGov poll finds 3 in 5 people want to increase public involvement in planning system
- 28th June 2024 -
Medtronic agrees partnership with IEMA to accelerate skills and standards in sustainability
- 21st June 2024 -
Landmark climate impact ruling for fossil fuel projects, cites IEMA guidance
- 20th June 2024 -
IEMA sets out 18 policy asks for the next Government
- 3rd June 2024 -
New global alliance formed for 25,000 environment and sustainability professionals
- 29th May 2024