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SMEs suffering from 'unbalanced' energy deals
11 August, 2008Small and Medium Businesses (SMEs) should be given fairer energy policies, it has been argued by the British Chamber of Commerce (BCC).
Small and Medium Businesses (SMEs) should be given fairer energy policies, it has been argued by the British Chamber of Commerce (BCC).
The BCC has highlighted how the consumers' interaction with the energy companies differs from that of the service received by an SME, which often restricts such customers thoroughly.
Calling on energy regulator Ofgem to provide solutions, the BCC has argued against such practices as requiring that a verbal contract between an energy company and a business is binding.
Consumers, when making a verbal contract, are offered a 'cooling off' period, during which they can cancel their agreed tariff.
At present, businesses must also have long-term contracts, compared to consumers who are entitled to switch their providers every 28 days.
The BCC director general, David Frost, said: "With the economy slowing and energy bills on the rise it is totally unacceptable that hard-pressed businesses are left so open to exploitation by energy suppliers."
Mr Frost added that there is a lack of transparency regarding the deals offered to SMEs at a time when the economy is acting against their interests.
The long, drawn-out sale of British Energy (BE) to EDF Energy has come to an end after the French energy firm bought BE for £12.5 billion, it has been reported.
Government hopes to have an EDF Energy-British Energy (BE) tie up within two weeks have been dubbed "optimistic" by the British nuclear company, according to a recent report.
Gordon Brown is facing the prospect of a major defeat over the government's reluctance to impose a windfall tax on energy companies, it has been reported.
The City of London has launched a campaign against Gordon Brown in order to convince him that introducing a windfall tax on energy companies should be avoided.
TaylorWimpey has reported phenomenally poor first half results for the year so far, recording a loss of £1.5 billion, it has been announced.