Small businesses are still paying around 50% more for their energy than larger firms, a new report by energy regulator Ofgem reveals.
The State of The Energy Market 2017 report is the first annual assessment of Great Britain’s energy markets since the CMA concluded its investigation last year.
It shows that prices for small business customers remain “significantly higher than those for larger customers”, with non-domestic electricity prices around 50% higher for small firms than for large ones, while non-domestic gas prices could also be twice as high.
“Larger businesses have a distinct advantage in being able to negotiate better deals than smaller businesses given their higher bargaining power,” the report said.
The number of small businesses switching supplier also declined over the past year, with 21% of businesses switching in 2016 compared to 25% in 2015.
More than a quarter (27%) of small businesses also said that it was too complex or time-consuming to find a new tariff or supplier.
However, those renegotiating tariffs with their existing suppliers increased from 30% to 39% over the last year.