UKs small businesses will receive no benefit from gas price cuts

The big six energy suppliers have now committed to cutting gas prices for their residential tariffs by between 5.0 – 5.4 per cent.

The latest of the energy heavyweights to announce the decrease are British Gas, whose price change takes effect on the March 16th, and EDF, whose new price commences eight days later.

But Sandra Dexter, national vice chairman for the Federation of Small Businesses, is disappointed to see small and micro-businesses ‘left out in the cold again’, arguing such companies will receive no benefit from these price cuts due to many being tied to complex fixed-term contracts.

‘This is a growing concern as almost a third of small firms highlight the cost of energy as a barrier to the growth and success of their business,’ she adds.

‘While it’s good to see big energy suppliers ensuring domestic consumers get a better deal, it’s time to end the exclusion of small and micro firms. Energy is an expensive commodity for households and businesses alike.’

The organisation also advises that the ‘continued lack of transparency and competition in the market’ must be addressed.

‘Our research suggests four in five small and medium-sized firms agree that published comparable tariffs would benefit their business,’ Dexter says.

‘They should be empowered to find the best deals and make the right decisions for their business. We have asked the Competition and Markets Authority investigation into the energy market to bring in market remedies on this when it reports this year.’