Demise of energy watchdog could be bad for small businesses

5 August 2008

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The FPB is warning that the imminent demise of Energywatch, combined with the spiralling cost of gas and electricity, must not leave business-owners paying more money for a reduced service. Despite fielding 30,000 calls from small firms each year, the utilities watchdog is being merged into a new National Consumer Council, which will also oversee the postal service. Previous research, commissioned by Energywatch, suggests that small firms are already disillusioned with the service being provided by the big electricity suppliers.

The FPB is calling on the new body to prioritise the concerns – including the rising cost of utilities and the level of service provided by energy companies – of the smallest businesses, in addition to those of domestic consumers.

None of the big electricity companies – including EDF Energy, npower, E.ON (formerly Powergen), Scottish and Southern Energy, and ScottishPower – received even a ‘satisfactory' rating in a survey of more than 2,400 small firms across the UK, carried out in 2006 by research agency Accent on behalf of Energywatch.

"These energy companies are consolidating to appear to be saving money, but they are not addressing the real problem," said Colin Beake of Utility Options, which provides a free service searching for the best energy deals on behalf of the FPB's members. "The big energy companies have got a tight stronghold on energy provision in the UK. They should be forced to do their job properly, in terms of correct billing – by overestimating bills and asking to be paid by Direct Debit, they are, in fact, making money they are not really entitled to. The demise of Energywatch could make these matters worse."

Inaccurate billing was the main concern for the smaller firms surveyed by Energywatch, in addition to infrequent meter readings, lack of information, slow responses to complaints, pressure from suppliers, and the apparent lack of skills and experience displayed by staff. Of those respondents who were dissatisfied with their bills, over half cited inaccuracy as their primary concern, with estimated meter readings the main culprit. Rectifying these mistakes was another major issue, with 58% indicating they were unhappy with the complaints processes of their utility providers.

British Gas has put up its prices by 35%. In addition, Centrica, which owns British Gas, recently posted a profit of £2.1 billion over the past year.

"Where one leads, the others inevitably follow," said Mr Beake. "Some of the big providers – including British Gas – have already started to put up their prices. It's only a matter of time before the rest do the same."

He urged owners of small businesses to shop around for the best prices on utilities, keep a close eye on their energy consumption and challenge estimated bills if they are found to be inaccurate.

For more information on how the FPB and Utility Options can save businesses money, contact the FPB's member helpline on 0845 130 1722. Alternatively, visit www.fpb.org/utilities or email utilities@fpb.org.

Demise of energy watchdog could be bad for small businesses

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