Firms 'need fairer energy deals'
August 11, 2008
UK businesses need to be offered help in dealing with energy companies, the British Chamber of Commerce says.
Firms, especially small and medium sized enterprises, are more vulnerable to exploitation by energy suppliers than domestic customers, the BCC added.
It called on energy regulator Ofgem to examine why businesses must have long term deals with suppliers while other customers can switch every 28 days.
There is no law forcing business suppliers to publish tariffs, it said.
And the BCC added it was wrong that domestic consumers had a "cooling off" period on verbal contracts, while such agreements which were immediately binding for business.
Its director general, David Frost, called for a current probe by Ofgem to hold suppliers to account over the "lack of transparency and fairness" in their dealings with firms.
'Unacceptable'
Watchdog group Energywatch received 32,000 calls every year from businesses seeking help and advice on their energy supplies.
And the BCC said it feared that this demand would not be met when Energywatch became part of a larger body, Customer Focus, from 1 October.
This would leave firms at the "mercy" of suppliers, so a new independent watchdog is needed to handle their energy concerns, the BCC said.
Rising energy bills have added to inflation which, alongside slowing growth, is adding to fears that the UK economy may face recession.
"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," Mr Frost said.
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