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Small firms need energy help

Small businesses are more vulnerable than consumers to exploitation by energy firms and should receive helping in dealing with them, according to the British Chamber of Commerce (BCC).

The group has also called on the energy regulator OFGEM to explain why businesses have to sign long-term deals with companies whereas consumers can switch after just 28 days.

Companies were also bound by verbal contracts with immediate effect, the body added, while domestic customers were entitled to a “cooling-off” period.

David Frost, director general of the BCC, said: “With the economy slowing and energy bills on the rise, it is totally unacceptable that hard pressed businesses are left so open to exploitation by energy suppliers. OFGEM’s investigation into the industry must hold the suppliers to account over the very apparent lack of transparency and fairness in their dealings with business.”

The BCC is also concerned about the loss of consumer champion Energywatch. The body is set to be combined with several other consumer groups in October, and the BCC is calling for an independent and dedicated watchdog to be established, specifically focused on the energy concerns and needs of businesses.

David Frost added: “Energywatch is currently providing a crucial service to thousands of businesses who are confused and frustrated by energy suppliers. If a ‘super consumer group’ is to be established, as the Government plans, there is little doubt in my mind that this service will be all but lost, leaving companies at the mercy of the suppliers. An obvious solution would be establishing a separate watchdog, dedicated to assisting businesses.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .