Hastings and Rye MP joins campaign for 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. MPs will use the data provided from local businesses to highlight the need for intervention in the business energy market.

Joining the campaign, Sally-Ann said: “Small and medium businesses are crucial to our local economy and supporting local businesses is one of my priorities as an MP.”

“When I speak with local hotels, pubs and other businesses it is obvious that they are experiencing difficult challenges: not only are energy prices soaring, but quotes from providers are being withdrawn or simply not offered. They also speak of being punished with punitive increases in variable rates if they don’t sign up for fixed term deals. This is unacceptable, anti-competitive and has the characteristics of a dysfunctional market.

“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.

“I have put together a short survey on my website for local businesses: https://www.sallyannhart.org.uk/hastings-rye-business-energy-survey-0

“I urge as many business owners and managers as possible to complete our 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.”

UK Hospitality 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 Sally-Ann Hart 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.”