The energy market is ‘unfair’ for small businesses, according to a new study by the Federation of Small Businesses (FSB).
The study is the first of its kind since the “Big Six” energy suppliers pledged more support for small businesses by ending rollover contracts.
The survey of the FSB’s 1,400 members revealed that small firms say the energy market needs to be fairer and more transparent, with 81% agreeing that published tariffs would have a positive impact on their business.
Two thirds of respondents said it was difficult to switch energy supplier, saying there were unclear notice periods, complicated contract terms and long delays the switching process.
Only a quarter of businesses believed that there was enough competition in the energy market.
John Allan, National Chairman of the FSB, said:
“It’s clear from our research that many small businesses don’t trust the big energy suppliers to deliver a smarter, fairer and more transparent billing process as four in five of our members say that energy companies don’t care about them.”
The FSN will present this study to Ofgem on Friday, pushing for the energy industry to be referred to the Competitions and Market Authority.
They are expected to demand that energy companies take action and publish easily comparable prices for small business customers, commit to not reintroducing rollover contracts and ensure customers who want to switch can do so easily.
Image by Helmu Thess