The energy crisis continues to strain the economy, especially impacting small enterprises across the UK. In this context, energy suppliers are increasingly urged to revisit their gas and electricity contracts for struggling businesses.
Proactive Steps by EDF and British Gas
Two significant industry players, EDF and British Gas, have already taken the initiative, cutting rates fixed at the energy crisis’s peak.
EDF announced it would propose new, more affordable contracts to around 15,000 small and medium businesses, including local stores, hair salons, and mini manufacturing units.
This move follows British Gas’s decision to slash costs for its customers and extend contracts at lower rates, coupled with a £15m grant initiative to assist businesses in managing their bills.
Potential Impacts on Small Businesses
These decisions hold immense significance for the nearly 100,000 businesses that fixed their energy contracts during the record-high energy market prices last year.
If not rectified, these businesses are bound to long-term contracts that require paying inflated prices, reflecting last year’s peak rates for an extended duration.
Amidst this complex situation, Philippe Commaret, EDF’s Managing Director of Customers, acknowledged the challenge.
He expressed an understanding of the heavy impact on some businesses and assured the company was making efforts to offer relief, despite not being able to alter all contracts.
Resistance from Major Energy Companies
However, this constructive response is yet to be mirrored across the sector.
Several large energy companies have largely ignored the growing demands to revise or reduce their energy deals.
This reluctance persists even with mounting concern from government ministers and senior officials at the energy regulator, Ofgem.
FSB’s Role and Response
The Federation of Small Businesses (FSB) remains vigilant in this scenario.
Craig Beaumont, the FSB’s External Affairs Chief, emphasised the need for thorough scrutiny of the promised 15,000 contracts by EDF to ensure they truly offer reasonable fixed prices.
He also called for other big energy suppliers to follow the lead set by EDF and British Gas, to prevent more small firms from being disadvantaged by their energy provider.
Summary
The ongoing energy crisis continues to pressure the UK’s small businesses and entrepreneurs.
Thus, the actions of EDF and British Gas mark a significant step towards easing this burden.
With the FSB keeping a close eye on the unfolding situation, it’s now crucial for other energy companies to step up and support the businesses that form the backbone of the UK economy.
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
