Small firms are in danger of losing an important source of help and advice on energy contracts, a leading business group has claimed.
Energywatch, the independent gas and electricity watchdog, is to be disbanded from 1 October this year.
However, the Federation of Small Businesses (FSB) has warned that its demise could hit the many small firms that have depended on energywatch.
Handling over 30,000 calls from small businesses last year alone, energywatch, the FSB argued, has won a strong reputation for offering firms help and advice on their energy contracts and for representing their interests.
The worry of the FSB is that Consumer Direct, the body charged with taking over energywatch’s responsibilities, will not tackle small business energy issues with the same willingness and dedication.
Heightening concerns has been a survey of over 1,000 businesses recently carried out by the FSB which revealed that 57 per cent of respondents have made complaints to their energy suppliers.
Of those that complained, 46 per cent did so because of billing problems, 21 per cent over inaccurate meter readings, 9 per cent over customer service and 24 per cent because of difficulties encountered in switching supplier.
Only 51 per cent of businesses reported that their complaints had been dealt with satisfactorily.
John Holbrow, the FSB’s environment and energy chairman, said: “This survey provides damning evidence that some energy companies are still not treating small businesses properly.
“It is sad to see that the government is disbanding energywatch at the very time when its work on behalf of small business consumers is most needed.”
Mr Holbrow added: “The government has so far failed to ensure that there is an effective alternative in place. With Consumer Direct seemingly uninterested, come October there will be thousands of small business owners with nowhere to turn for help when their energy companies take them for a ride.”
Date:14 July 2008
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