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Trade News Archive August 08 July 08 June 08 May 08 April 08 March 08 February 08 January 08
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11th August 2008
Report criticises electricity suppliers' treatment of small businesses
A new report has criticised the services that energy companies are providing to business clients.
The British Chambers of Commerce (BCC) said that utility companies were not delivering the same fair and transparent services to their small business clients that they are compelled to offer domestic customers.
For example, the BCC said that domestic suppliers are required to publish their tariffs for ease of comparison, but added that there was no such rule for business contracts.
What's more, the typical domestic customer can switch supplier every 28 days, but businesses are usually tied into long-term agreements that can last as much as five years.
"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," BCC director general David Frost explained.
"Ofgem's investigation into the industry must hold the suppliers to account over the very apparent lack of transparency and fairness in their dealings with business."
BCC said that a new, independent watchdog was needed to ensure small businesses were provided with a fairer service from utility suppliers.
Recently, Thames Water, United Utilities and Severn Trent suggested that water bills might rise by as much as 4.5 per cent a year above inflation between 2010 and 2015.
(c) 2008 Adfero Ltd.
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