Small Businesses in a Tightener: FSB Grabs the Spotlight on Energy Tariffs
Picture this: your small shop, a coffee shop, a boutique, or a tight‑budget start‑up—each of you staring at an inbox that sparks a quick, fresh‑faced panic. Hey, is that the next energy bill again? The Federation of Small Businesses (FSB) has written to the Business Secretary, Grant Shapps, demanding that the Government step in and shut the door on murky price hikes by energy suppliers.
Why the Fuss?
- Sky‑high invoices: Even after the Energy Bill Relief Scheme (EBRS) hit the market, many small companies find themselves paying far more than their initial contract promised.
- Unequal discounts: Some get a decent slice of the rebate while others scarcely see any reduction.
- Disproportionate deposits: Several firms are asked for hefty upfront payments, with threats that failure to deliver could result in a power cut.
- Supplier sugar‑coating: Energy giants say households won’t be shut off this winter, but small businesses have a different story—V.O. to be disconnected in just 30 days.
- Sector discrimination: Certain businesses are being kept off the master list because suppliers fear they might collapse during the cold snap.
“Small businesses across the UK feel the chill of uncertainty and hope all at once, especially since 2020,” the letter read. “But the remedy’s rollout—and the silence from suppliers—has only raised eyebrows.”
FSB’s Call to Energy Giants
September saw a grand letter to six headline suppliers: Centrica, EDF, E.ON, Octopus, Ovo, and Scottish Power. The message? Freeze standing charges, ditch unreasonable deposits, and keep the warm lights on for small businesses. Response? One ambivalent reply from Scottish Power, and five total silence. The big players? Silent.
Complicating matters, the FSB notes a 10 % dip in the small‑firm sector—almost 500,000 out of the industry have gone dark over two years. Now, the fear is that prices might push even more into the abyss.
FSB Voices the Anger
Policy Chair Tina McKenzie said, “We’re all feeling the burn, but the scheme isn’t doing its job. Supplier actions slash our fingertips. We’re left wondering if we’ll survive till Christmas or have to let staff go.” The final plea is unmistakable: Transparency and support from suppliers and the government are imperative.
“This winter, the energy suppliers should honor their commitments to households and do the same for businesses,” McKenzie adds. “Requiring a big cash upfront for a penny’s worth of energy when the business is already scraping by—well, that just shoves already harmed companies into deeper drags.”
The Bottom Line
The FSB wants the government to champion a fair play scenario, stop arbitrary price hikes, and prevent any disconnection of small businesses. After all, if the government treats households kindly, why shouldn’t the smaller shops feel the same warmth?
