Energy suppliers 'not transparent'

12 April 2012

A leading business group has called for new measures to help firms deal with energy companies amid claims that they were more vulnerable to exploitation than domestic customers.

The British Chambers of Commerce (BCC) claimed that energy suppliers were not giving businesses the same "fair and transparent" service received by domestic users.

The group urged the regulator Ofgem to tackle a number of "serious flaws" in the way energy companies dealt with businesses.

A new independent watchdog should be established to deal with the energy concerns of business, said the BCC.

In a report the Chambers said watchdog group Energywatch received 32,000 calls every year from businesses seeking help and advice on their energy supplies.

Compared to domestic users, businesses were "significantly more vulnerable" to exploitation and unfair practice by energy firms, it was claimed.

The BCC said in its report that while domestic suppliers were required to publish their tariffs, there was no regulatory requirement covering business suppliers.

Domestic contracts allow people to switch every 28 days, but businesses have to sign up to long-term deals.

David Frost, director general of the BCC 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 said the current investigation by Ofgem should hold suppliers to account over the "lack of transparency and fairness" in their dealings with business. Mr Frost also warned that moves to create a new "super" consumer group, including energy, would leave companies at the "mercy" of suppliers.

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