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Energy providers treat SMEs 'unfairly'

Published On 26 March 2007 at 09:15:07

Small and medium-sized enterprises (SMEs) are facing debt and even bankruptcy because energy providers are not acting effectively, according to a new report.

The Observer carried out an investigation which found that SMEs were increasingly struggling to cope with their energy suppliers, who often failed to update charges, sent incorrect bills and did not act to deal with problems when they occurred.

During the paper's investigation, it was discovered that energy prices for businesses were far less competitive than consumer prices and that SMEs were often forced to sign up for long-term contracts.

It was also found that SMEs struggled to compare energy prices from the various suppliers, as these organisations are not obliged to publish price information.

Energywatch, the watchdog which monitors the industry, told the paper that it was aware of the problem.

"Small businesses are stuck in the middle," said Paul Savage, the organisation's business services manager.

"Consumers are offered protection if anything goes wrong with their energy supplier, and big businesses have the know-how and the staff to deal with negotiating contracts."

Recently, the Scotsman reported that the Federation of Small Businesses had also warned that a possible merger between energy watchdogs in Scotland could mean a "lack of protection for small businesses".

 

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