Leading trade bodies representing more than 200,000 businesses have renewed calls for greater transparency in the business energy market to help tackle rising costs for small and medium-sized enterprises (SMEs).
Ahead of a key session of the Business and Trade Select Committee upcoming review of the Government’s Industrial Strategy today, industry groups are warning that systemic transparency failures are driving up costs for SMEs at a critical moment for the economy.
Sarah Edwards MP, a member of the Committee, has also recently called for improved trust and transparency within the business energy market. Her comments echo concerns raised by major industry groups, including UKHospitality and the Federation of Small Businesses, who warn that a lack of clarity in pricing continues to drive up costs for SMEs.
Trade bodies argue these are not isolated issues but signs of a market that is failing smaller firms.
The warnings come as energy costs remain volatile, with recent global affairs pushing up fuel prices and leaving some UK businesses- particularly in rural areas - exposed to sharp increases and supply uncertainty.
Industry groups are now urging the Government to fast-track the regulation of third-party intermediaries (TPIs), arguing that brokers operating without sufficient oversight are contributing to confusion, poor deals and higher costs.
Ministers have pledged reform but have yet to provide a timeline, fuelling frustration across the business community.
Edwards, who is also the MP for Tamworth, said: “Small and medium-sized businesses are the backbone of our economy, yet too many are facing unnecessarily high energy costs due to a lack of transparency in the market.
“It’s vital we rebuild trust by ensuring clear pricing, proper oversight of intermediaries and a system that works fairly for businesses of all sizes. I will continue pressing both ministers and Ofgem to urgently introduce the regulation needed to protect businesses and restore confidence in the market.”
The Association of Convenience Stores chief executive, Ed Woodall (left), added: “Independent retailers often have the same level of resource and expertise about the energy market as domestic consumers, but don’t benefit from the same protections.
“With almost one in ten retailers reporting they’ve been overcharged by their energy supplier, the gap in these safeguards is having real consequences. Businesses need transparency across every element of their energy contract, enforced by the regulator, so they can understand what they’re paying for, challenge it where necessary, and take proper control of their costs.”
National President of the Fed, Hetal Patel, added: “Rising energy costs hit our businesses hard because of the energy intensive way they operate – eating into margins and ultimately threatening their viability. Improving transparency in the energy market, making it more competitive, will help control these rising costs. The Fed backed the campaign at its launch in Westminster in February and is now urging the Government to act.”
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