Are you paying too much to keep the lights on?

The vast majority of UK companies are overpaying for telecoms, electricity and gas services.

Nine out of 10 businesses are overpaying for these core services, according to a survey of more than 300 organisations by utility procurement consultancy Utility Watch.

Organisations are missing out on telecoms savings of up to 35 per cent, and up to 20 per cent on electricity and gas, it added. SMEs suffer the most.

When it comes to telecoms, Utility Watch said most companies seek the best deal on paper but fail to look in depth at how specific costs - such as line rentals, connection charges and minimum call fees - add up, so end up paying over the odds.

Many commercial organisations are also reluctant to change an existing electricity or gas supplier when they move into new premises and this kind of inertia is costing companies money, said Utility Watch.

Greg Shepherd, director and founder of Utility Watch, said the problem is organisations approach utility procurement with the same attitude they have for buying equipment. He said they must learn to shop around - as consumers do - in order to achieve the best value for money, adding that as utility prices are on the up this is more important than ever.