SMEs suffering from 'unbalanced' energy deals

Small 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.