Energy suppliers are failing to provide businesses with the same fair and transparent service as domestic energy users, a Shropshire business leader warned today.
With energy bills soaring and the economy in a sharp decline, Shropshire Chamber of Commerce is urging the energy watchdog to make sure its current probe into the energy industry addresses a number of serious flaws in the way energy companies deal with businesses.
The chamber is also calling for a new, independent and dedicated watchdog to be established, which is specifically focused on the energy concerns and needs of business.
Consumer champion Energywatch is set to be merged with several other groups from October 1, a move which the chamber fears will see businesses worries over rising energy bills lost amid a range of other customer concerns.
Research shows that Energywatch receives 32,000 calls from businesses seeking help and advice every year and the chamber claims a new and dedicated business watchdog would ensure that the “vital service” is not lost in the creation of a single consumer group covering a range of industries.
Chief executive of Shropshire Chamber of Commerce, Nick Graham, said when compared to domestic energy users, businesses are significantly more vulnerable to exploitation and unfair practice by energy firms.
He said some of the key differences included the provision of pricing, with domestic suppliers required to publish their tariffs for ease of comparison whereas there is no regulatory requirement to do so for business suppliers.
Mr Graham 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.
“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.”
The basic domestic contract allows people to switch every 28 days; for businesses long-term contract commitments are demanded for up to five years, which can be rolled over with little pre-warning. Also domestic energy users are entitled to a “cooling off” period on verbal contracts; for businesses, verbal contracts are immediately binding. There is also a one-year restriction for back billing on domestic users; however, there is generally no such restriction for businesses.
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