Micro-electricity suppliers criticised
Posted on: July 2nd, 2008 by Emma Young2 energy suppliers whose clientele is mainly small-sized businesses has received criticism from an energy sector watchdog for exploiting the inefficiencies of the bigger energy suppliers and putting in place harsh contractual terms.
The energy sector watchdog, Energywatch has named the two guilty energy suppliers as Electricity4Business and Business Energy Solutions which supplies gas and. Energywatch has also forwarded the complaints which have been brought up by the customers the energy regulator, Ofgem.
The two energy suppliers are known to have contractual terms which give a timeframe within which the customers must have changed to another supplier upon the expiry of their existing contracts. For instance with Business Energy Solutions a customer must change to a new supplier within a span of twenty four hours while in the case of Electricity4Business a customer must change to a new supplier within a week after which their electricity supply will be cut off. In situations where the customers do not manage to switch suppliers within the respective specified times, there is automatic renewal of the long-term contracts.
At present the electricity and gas market in the United Kingdom has six large energy suppliers who are in domination. These include Npower, Scottish & Southern, British Gas, Powergen, Scottish Power and EDF. The big six have a ninety five per cent market share.
The energy sector watchdog has argued that an average of a month is required for one to switch energy suppliers but Electricity4Business has claimed that it can change the energy supplier of a customer in a very short time.
www.energywatch.org.uk
