(Bloomberg) — Britain’s energy suppliers should renegotiate contracts with small businesses to reflect a heavy drop in wholesale prices, a major trade body said.
(Bloomberg) — Britain’s energy suppliers should renegotiate contracts with small businesses to reflect a heavy drop in wholesale prices, a major trade body said.
The Federation of Small Businesses urged energy companies to help customers stuck on fixed rates that were agreed when global prices soared to record highs last year. Its plea comes as many small firms face a jump in bills, with the government ending most of its support.
About 93,000 small firms that signed contracts late in 2022 could be forced to close because of high bills, the group said.
“There are signs that small businesses may be about to turn a corner after last year’s downturn,” said Tina McKenzie, policy chair of the FSB. “Giving small firms a way out of last year’s market peak rates will accelerate the progress to recovery.”
The federation’s call is a thorny request for suppliers that tend to buy energy in advance for their clients, locking in costs at the time contracts are signed. They have previously argued that adjusting those deals now could see suppliers, who operate on thin margins, providing energy at a loss.
The FSB has suggested that customers could be allowed to “blend and extend” their contracts, securing lower rates in exchange for signing up with a supplier for longer.
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