Selaine Saxby, MP for North Devon, last week joined MPs from around the country and the Chief Executive of UK Hospitality, Kate Nicholls, to launch a campaign to secure common sense energy contracts for businesses.
MPs supporting the campaign will invite all small and medium businesses in their constituencies to complete the Business Energy Survey. The MPs will use the feedback provided from local businesses to highlight the need for intervention in the business energy market.
Joining the campaign, Selaine Saxby said:
“Small and medium businesses make an invaluable contribution to our local economy and supporting local businesses is one of my priorities as your MP for North Devon.
“Every week, I meet with the owners, managers and employees of local businesses in North Devon. I also carefully read the messages and letters that you send – so many of you contact me directly with your concerns. I do it to learn about the issues that concern you the most – and how I can best support you as your Member of Parliament.
“When I speak with local hotels, pubs and other businesses it is becoming increasingly clear they are describing really difficult challenges: not only are energy prices soaring, but quotes from providers were being withdrawn or just not offered. They also speak of being punished with punitive increases in variable rates if they didn’t sign up for fixed term deals.
“This is unacceptable – anti-competitive and the characteristics of a dysfunctional market. Coupled with soaring energy bills, this is the last thing businesses need and a very real problem for them, that is hitting their bottom line right now.”
The Treasury has commissioned a review by Ofgem, the energy regulator, into non-domestic energy supply contracts. Treasury Ministers have agreed to meet with MPs supporting this campaign to discuss the report – and it will be very helpful to take information from businesses to that meeting.
Selaine Saxby added:
“I have put together a short survey on my website for North Devon businesses and I would be grateful if you could spare a couple of minutes to share your recent experiences with energy suppliers. The survey can be accessed here: https://www.selainesaxby.org.uk/north-devon-business-energy-survey.
“I urge as many business owners and managers as possible to complete our Business Energy Survey. Together with data from MPs across the UK, we will take the findings directly to Treasury Ministers for them to consider alongside the Ofgem report. We need to bring common sense and fairness to the business energy supply market.”
UKHospitality Chief Executive Kate Nicholls said:
“Hospitality is very much the canary in the coal mine when it comes to the behaviour of energy suppliers. We have seen suppliers pursuing unfair tactics with no good reason, such as demanding significant security deposits, hiking up standing charges or, in some cases, simply refusing to supply hospitality businesses. This refusal to offer contracts to hospitality businesses was highlighted by Ofgem as a particular cause for concern.
“I’m grateful to Selaine Saxby for attending the launch and supporting the campaign. Half of hospitality businesses were forced to take out an energy contract at the peak of the market and, for those businesses, the vast majority cite that as the single biggest factor in whether they are able to survive the next six months.
“It’s essential that more is done to help struggling hospitality businesses with their bills, particularly for those stuck in contracts negotiated when wholesale energy prices were at their highest. There’s also a need to urgently address the use of energy brokers, which are largely unregulated, and often contribute to higher energy costs.”
