Emily Groves, managing director of independent energy management firm Indigo Swan

It may have escaped your notice, but the Muppets are back on our screens with a new film.

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One of the big musical numbers in the movie is the gloriously titled “Man or Muppet?”

It’s a question we should all ask when it comes to our energy consumption – is our business getting the best possible deal or are we behaving like Muppets?

Consider this.

If your business decided to invest in new ways of reducing energy use, perhaps investing in solar photovoltaic panels which generate energy as well as save it, you wouldn’t head down to the nearest supplier and part with your cash.

Investments like this require due diligence.

The time taken to understand the benefits of these projects to your business and the research undertaken to support your decision is absolutely vital.

Whether you’re installing energy saving light bulbs or biomass boilers there will be two key considerations driving the project; how big the carbon emission (CO2) reductions will be and how much cash you will save.

So having gone through all that, why do some businesses not apply the same attention to detail with their electricity or gas contract renewal?

In fact, unless energy contracts are reviewed and negotiated in a timely manner at the point of renewal, then any savings from these projects can be severely reduced or wiped out.

Here’s a stat that might shock you: energy suppliers retain 90pc of their business customers by automatically renewing their supply contracts.

The rates applied in the renewal have not been negotiated, a dialogue has not been entered into with the supplier and I can say for certain that the supplier will not have offered their best price.

Energy suppliers may couch this in terms of ‘securing’ or ‘protecting’ their prices for the next year and assuring businesses that ‘no action is required’.

Businesses accept this because media focus has been on energy price rises and they were expecting an increase.

They may also not be aware of the different tariffs available or the pitfalls of an automatic renewal.

Philip Davies, from Ofgem, has explained “Some businesses are getting a good deal and others are not.

“Being a passive customer means that, as the years go by, you are much less likely to get a better deal than an active customer.”

This complacency means the additional cost to a business escalates each year.

Anytime now businesses will be receiving expensive bills reflecting their increased gas and electricity usage over the winter.

Naturally many will look for ways to save money and will consider engaging in energy projects.

My advice is simple. Don’t be a Muppet.

Take a balanced look at your energy needs and ensure contracts are managed in a timely and efficient manner, giving as much consideration to your basic energy requirements as to any energy saving or renewable project.

Anything else is just Fozzie logic!

Emily Groves is managing director of Indigo Swan.