Latest findings show that smaller sized businesses are still struggling with soaring energy bills even with the government’s Energy Bill Relief Scheme (EBRS) in place.
According to the Federation of Small Businesses (FSB), this is due to energy suppliers finding ways to inflate prices.
There are examples of energy suppliers charging those with newly signed contracts at rates that are substantially higher than previous periods; some small firms are being asked by energy suppliers to make disproportionate upfront payments and being told that they could be disconnected from energy if they fall into arrears.
While energy suppliers have pledged not to disconnect households that fall into arrears this winter, they have promised no such help for struggling small businesses in the same position who can be cut off within 30 days.
The FSB has written to the Business secretary with these concerns and is urging energy suppliers to:
- sign up to freezing standing charges
- not to disconnect struggling SMEs this winter
- ban the practice of disproportionate upfront payments.
FSB Policy and Advocacy Chair Tina McKenzie, commented, “The lack of responsiveness from the UK’s big energy suppliers speaks for themselves and matches with what small businesses have been experiencing in the past month.
Thinking of appointing Dolan Accountancy?
Give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
Email Jaime“While the energy help package is welcomed by small firms, many have come to us puzzled that their bills remain sky-high, confused about how the discounts are being applied and worried about whether they could still stay open by Christmas and need to let their staff go.
“That’s the opposite of what the EBRS is supposed to achieve. We need more transparency and support around the scheme, which is designed to help tens of thousands of small businesses cope with soaring bills and get through this winter.
“The Government should intervene to ensure that energy suppliers refrain from finding routes to inflate rates for contracts. Energy firms should promise not to disconnect struggling small businesses this winter, in line with their commitments to households.”
Tina added, “It’s utterly unacceptable for energy suppliers to ask cash-strapped small firms to cough up a large sum of deposit in advance of having any turnover or profit that can fund their energy use – when the vast majority of small businesses are fighting for survival from a record-high inflation, rising interest rates and an intensifying consumer pessimism. This is basically kicking small firms when they’re down.
“Energy suppliers need to recognise their roles in ensuring this multi-billion-pound help package serves its purpose and is not exploited at the expense of taxpayers or the livelihoods of the small business community.”
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
Trusted by over 1,000 contractors |