SMEs across the UK could see lower energy bills if they bought energy jointly with other firms.

A new report by Cornwall Insight suggests small and medium-sized businesses looking to save money on energy bills and increase their use of renewable energy could achieve that by signing Corporate Power Purchase Agreements (CPPAs).

CPPAs, which allow corporations to get long-term fixed energy price security with little or no upfront costs, have up until now been reserved for large companies that have a good credit rating.

However, with supply from renewable energy generators looking to surpass demand from large corporations for at least the next two years, some generators are now considering selling collective CPPAs to groups of smaller groups, according to the consultancy.

Data from the report shows that this new way of energy procurement could help struggling businesses stay afloat as they see their gas bills soar by 250% in recent months.