The Federation of Small Businesses (FSB) has given its backing to a new Commons report on energy prices and has called for action to help firms hit by soaring energy costs.
The Business and Enterprise Select Committee warned in its report that the “UK’s energy markets are not functioning as efficiently as they should” and that “industrial consumers now face prices above European levels”.
The report continued: “If these price differentials are sustained, they will affect the competitiveness of the UK economy.”
The FSB welcomed the report and called for recognition of the similarity between small businesses and domestic consumers in the energy market.
John Holbrow, the FSB’s environment and energy chairman, said: “The FSB welcomes the recommendations of The Business and Enterprise Select Committee on rising energy prices today and the recognition that these costs have an extremely adverse effect on business.
“Small business owners are very similar to small domestic consumers in terms of energy consumption patterns and expertise but often fall foul of complex bill formats, infrequent meter readings, incorrect billing, poor customer service and lack of information on switching suppliers.”
Mr Holbrow emphasised the importance of an effective energy watchdog champion for smaller firms.
He added: “This report underlines our warnings that the demise of regulator Energywatch will have a detrimental effect on small businesses. Their work is unlikely to be covered by Consumer Direct, which will nominally take over energywatch’s responsibilities but has shown little willingness or ability to tackle small business energy issues. It is alarming that with increased prices there will be nowhere for small businesses to turn.”
Date:28 July 2008
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