The Federation of Small Businesses (FSB) has urged energy suppliers to
renegotiate fixed contracts for small firms on market-peak tariffs.
Research carried out by the FSB revealed that many small businesses are trapped
in contracts that mean that their latest bills are at last summer's peak market
rate for energy, despite wholesale prices having fallen since the winter of
2022.
13% of small firms polled fixed their energy contracts during market peak in
2022, the FSB found. It suggested that 93,000 small businesses could be forced
to downsize, restructure or even close.
The business group has urged energy suppliers to give small businesses the option
to 'blend and extend' their fixed energy contracts, allowing them to renegotiate
or sign up for longer.
Tina McKenzie, Policy Chair at the FSB, commented:
'Having come out from a tough winter, this spring is supposed to be the
beginning of economic recovery, but tens of thousands are still very much in
survival mode because they are tied-in to sky-high energy contracts.
'Many small businesses agreed to lock in energy contracts last year to ensure
they qualified for the maximum level of government support. Now, with that
support largely disappearing, they are once again faced with massive energy
bill hikes as rates go back to pre-Energy Bill Relief Scheme level.'
Internet link: FSB