Thirty-six percent of Finnish small and medium-sized companies have already raised prices due to higher energy costs, according to a member poll published on Saturday by Suomen Yrittäjät (the Federation of Finnish Enterprises).
"Entrepreneurs are reacting with the tools at their disposal: raising prices while cutting expenditures on energy and other expenses. In addition, many are investing in energy efficiency, especially in industry, which is actively seeking new energy sources," the business lobby's CEO Mikael Pentikäinen said in a statement.
Most often, the increase in energy costs has spurred small and medium-sized enterprises (SMEs) to raise their own prices (36 percent of respondents) and take measures to save energy (34 percent).
Half of industrial firms report shrinking profits
Almost a third of the companies said that their profitability is decreasing. That figure is up to almost half of industrial firms.
"The exceptionally difficult situation in the energy market is affecting companies in many ways," said Pentikäinen. "It's important to increase the supply of electricity and ensure that tax breaks for consumers do not end up in the pockets of energy utilities, but rather make it easier for customers, including companies."
On Thursday the government proposed that the value-added tax (VAT) on electricity be lowered from 24 percent to 10 percent from December through April.
Few switching to renewables due to crisis
Almost a fifth of SMEs surveyed (18 percent) said they are reducing travel. Sixteen percent reported lowering room temperatures, 12 percent investing in energy efficiency while 11 percent said they are trying to make their space usage more efficient. A quarter of industrial firms said they are investing in energy efficiency.
So far only five percent of the companies report that they have reduced personnel due to energy costs.
Seven percent said that they have changed their energy sources, with six percent saying that they have begun using more renewable energy and five percent reporting that they have switched to renewable energy as a result of the energy crisis.
The survey was carried out by the polling firm Kantar between 18 and 25 August. Representatives of just over 1,000 SMEs responded to the survey. The margin of error is estimated at about three percentage points.