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Energy watchdog demise 'will harm small businesses'

gas ring
The Federation of Small Businesses (FSB) has repeated its warning over the demise of gas and electricity watchdog energywatch.

Energywatch has been vocal in criticising the treatment of small firms, but on 1 October the group becomes part of Consumer Focus, a move that the FSB says will leave small businesses unsure of where to turn.

The new body, which has been set up by the Government to fight for consumers' rights, brings together energywatch with the National Consumer Council and Postwatch, and will aim to tackle the issue of the rising energy prices.

However, the FSB says that more than 50% of firms have made a complaint about their energy supplier, and points out that energywatch has been handling 30,000 calls each year.

Despite the fact that small businesses will be able to take complaints to an Energy Ombudsman, FSB environment and energy chairman John Holbrow fears that awareness of the new structure will take time.

"Small businesses are already under particular strain in a volatile energy market and this is coupled with unclear pricing policies and poor standards of service from some gas and electricity suppliers," he said.

"We are continuing to lobby for better representation of small businesses in the new set-up."

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