SMEs across the UK have already started feeling the pressure created by the soaring energy prices.

A new study from the payments service NatWest Tyl suggests that nearly 70% of small and medium businesses believe that energy costs impact their growth.

Almost 65% of SMEs are spending up to one-fifth of their total business costs on energy consumption, while 8% of SMEs are spending a whopping 35-50% of their total business costs.

The survey of 500 UK SME business owners also finds that companies in Yorkshire and Humber pay the highest energy bills in the UK, an estimated £5,000 a year.

Nearly 17% of small businesses owners said they don’t fully understand their energy bills and a further 31% admitted that they do not know enough about how to manage their energy use.

The survey also suggests almost 37% of small business owners are unaware of the government support for energy efficiency measures.

Mike Elliff, Chief Executive Officer of Tyl, said: “Improving energy efficiency in the workplace can be the most effective way to reduce these costs, whilst also playing a key role in the UK’s journey to net zero.”