Over 60% of small and medium-sized businesses believe that there should be a dedicated watchdog for utilities, according to research by the Forum of Private Business (FPB).

A poll of over 1,7000 FPB members revealed that almost 75% have experienced problems with their utilites supplier and for 59% of firms the situation has declined over the last six months.

"It's about time that the whole thing was overhauled to give small businesses better protection," said Colin Beake, the FPB's adviser on utilities.

Over 85% of businesses surveyed also believe that the situation will deteriorate over the coming six months as the current recession means cash-flow is increasingly tight for all companies.

Small business owners cited that their biggest complaints are roll-over contracts that tie them into unfavourable deals, lack of faith in the complaints processes and doubts in regulators Ofwat and Ofgem.