Tuesday 06th of January 2009

BCC requests Ofgem not to overlook small businesses

Posted on: August 12th, 2008 by Emma Young

British Gas has increased the gas prices by 35% and electricity prices by 9% for its 15.9 million consumers in the month of July. Same month, another major energy supplier, EDF also increased the gas prices by 22%. Few of the consumer groups have raised concern that this winter many households might face fuel poverty. They have demanded that the energy companies must pay windfall tax and with that money, the most-affected families should be helped. However, this issue is, right now, under consideration of ministry.

On the other hand, the British Chambers of Commerce (BCC) has shared that small-scale businesses are more affected by these price hikes then domestic users and has urged Ofgem, not to ignore these businesses during the investigation, which started in February to check the effect of European wholesale gas and oil prices on the UK energy system. The chief executive of Ofgem has announced the investigation on the request of people, who has doubt that that the UK’s energy market is not working as it should be.

The BCC also pointed out that according to EnergyWatch, a consumer group, business users are not able to see their tariff details clearly and because of that they can not compare the energy usage. As a result, they are not able to manage their power supply, effectively. Moreover, the energy suppliers ask business consumers to sign a contract for five years, whereas home users are free to change the electricity company every month.

The BCC director general, David Frost said that at the time, when economy is slowing down and electricity bills are increasing, small business users could not be exploited like this. He reinforced Ofgem to question energy suppliers on, why their dealing with the small business users is not clear and fair.

Please visit www.ofgem.gov.uk for more

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