Small firms demand Ofgem to grant energy‑contract cooling‑off window

Utility Bills: The Unseen Weight on Small Businesses – Is Ofgem Doing Enough?

Small firms are feeling the squeeze from utility costs, and new research from the Federation of Small Businesses (FSB) confirms it. If you thought the energy crisis of last year was a distant memory, think again – small companies are still reeling.

What the Latest Small Business Index Reveals

Over 57% of small businesses report utilities as the biggest driver of rising costs in Q3.
That’s a slight dip from 62% a quarter earlier, but the trend stays steep.
Many still stuck with the high, fixed tariffs that were set back in 2022.

Living with the Gas and Electric Reality

Picture this: an independent retailer paying 75p per kWh while a small pool club is stuck at 66p. That’s the “same ocean, different depth” headline for many businesses.

And, to top it off, one small garden centre falters under a standing charge of £1.20 a day – that’s more than the cost of a coffee!

The Human Angle – Why It Matters

Small businesses run on thin margins; a single extra penny can mean the difference between staying open or going out of business.
Energy mis-selling and “unreasonable” tariffs trap owners in a cycle of debt – especially as winter approaches.
Customers in the domestic sector can cancel contracts within a 14‑day cooling‑off period; micro‑businesses don’t have that safety net.

Calls for Street‑Credible Redress

FSB’s demands:

Introduce a 14‑day cooling‑off period for micro‑businesses, giving them the same fallback safety as households.
Freeze standing charges over the winter months to soothe the current economic strain.

To Ofgem – A Friendly (and Urgent) Suggestion

It’s time to roll up our sleeves and protect the small business community. Imagine the relief of a shopkeeper who can finally breathe without groaning over the balance sheet each month.

Let’s make it a reality: clearer contracts, aligned cooling‑off periods, and standing charge freezes are simple, pragmatic solutions that could keep tiny enterprises buzzing long into the winter.

After all, the best part of doing business is seeing your customers smile – not seeing them scream at their electric bills.

Micro‑Biz Energy Wars: A Tale of Tariffs, Tanks, and Trade‑Thrust

Why the October Price Cut Isn’t the Full Story

Martin McTague, the national chair of the FSB, points out that the knock‑down in October’s energy price cap helped the overall inflation slowdown. But the thing that lies on the underside is this: business tariffs are still playing a hard‑pressed game of hide‑and‑seek without a safety net.

What’s the Bottom Line for Small Firms?

Their utility bills stay high, even if consumers get a sweet discount.
That means small businesses are still fed a steady stream of financial pressure.

Smashing the “Never‑Quit” Sales Culture

McTague proposes a 14‑day “cooling off” period for micro‑businesses.

It stops those finicky suppliers from pressing hard at the last minute.
It helps businesses dodge last year’s high fixed‑rate trap.

Standing Charges: The Silent Tax on Every Business

Standing fees are charged whether you drink peas or a gallon of petrol. That fee is often used as a sneaky price‑buster by suppliers.

By freezing these charges, a small business could keep a lower bucket of bills.
Ofgem is looking into fresh changes to this standing charges system – and the FSB is waving a big “yes” flag.

Helping Warm‑Up Tomorrow’s Blackouts

McTague says:

Let the FSB‑backed Ofgem proposal spread out.
Offer small firms an option to un‑block last year’s cursed contracts.
Link the original fixed rate to today’s cheaper wholesale market – a blended, lower price.