The Competition and Markets Authority (CMA) is investigating failures in the energy market in great detail. Although it won’t report fully until the end of this year, its interim findings have identified the microbusiness sector as one that requires attention. This is excellent news. The Federation of Small Businesses (FSB) has consistently argued for this and recently submitted evidence to the CMA inquiry.
In recent FSB research, a third of small businesses said the cost of energy is a barrier to growth. Without the same consumer protections as domestic customers, microbusinesses say they struggle to navigate the market and often don’t feel empowered to find the best deal.
The CMA inquiry has been a welcome development in resolving the situation and we are confident this intervention will benefit small businesses in the long term. However, once the CMA makes its recommendations, it could be some time before meaningful action is taken by government, regulators and the energy companies.
In the meantime, we strongly believe Ofgem, in partnership with energy firms and consumer organisations, must continue to seek practical improvements to the small business market.
The FSB will continue to raise concerns around areas such as the regulation of energy brokers’ auto-rollover contracts and the use of smart meters. Energy is a major issue for our members and the FSB will do everything it can to ensure its cost does not remain a barrier to growth.
John Allan, chairman, Federation of Small Businesses