According to a new report, some energy suppliers are using rocketing standing charges to inflate SME bills.
The Federation of Small Businesses (FSB) recently flagged complaints from its members about the soaring rises (up to 12-fold increases) in the fixed fee set by energy suppliers, regardless of energy usage.
FSB National Chair Martin McTague, commented, “Energy suppliers have some explaining to do on the sudden and dramatic hikes in standing charges, which become a regressive form of billing that hamper small business growth, confidence, and investment.
“Even now that the wholesale energy prices have come down from the peak we saw in 2022, small businesses are still scratching their head over skyrocketing bills.”
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Martin added, “While parts of the standing charges are being reinvested into green and energy efficiency measures, there’s little to no clarity on the cost make-up, and small businesses are forced to pay the increases with no options and explanations from their energy suppliers.
“Small firms do not have the same protection as household customers when it comes to energy price hikes. Business energy bills could continue to stay high if the standing charges system remains the way it is now.
“A more transparent standing charges system is needed to ensure market competition and, most importantly, to enable small business customers to understand clearly what they are paying for.”
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