End of energy watchdog 'bad for small firms'

The break-up of independent gas and electricity watchdog energywatch will leave a gap that could hit small firms, the Federation of Small Businesses (FSB) has warned.

Energywatch, which was established in 2000, has strongly criticised the performance of major energy companies in their treatment of small firms. However, it will be disbanded in October, and its duties taken over by Consumer Direct.

A new poll of 1,000 firms by the FSB found that 57% had made complaints about their energy supplier, but that only half felt their concerns were being dealt with satisfactorily.

"This survey provides damning evidence that some energy companies are still not treating small businesses properly," said John Holbrow, FSB environment and energy chairman.

Holbrow said it was "sad" to see energywatch go "at the very time when its work on behalf of small business consumers is most needed".

"The government has so far failed to ensure that there is an effective alternative in place. With Consumer Direct seemingly uninterested, come October there will be thousands of small business owners with nowhere to turn for help when their energy companies take them for a ride."