27/10/2023
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Following my previous post regarding energy companies overcharging businesses, I have this afternoon written to Jill Mortimer MP seeking real and urgent change. Letter below.
Not just to the current unfair pricing, but also to governance arrangements of energy companies.
How many businesses, like mine, have closed as a result of illegal overcharging? We may never know the true number. But if we stand up, we may be able to prevent any moreπ€
This is the exact text from the letter sent this afternoon:
Dear Jill Mortimer,
I am writing to express my deep concern about the escalating cost of energy utilities for businesses in our constituency, and indeed across the country. The gravity of this issue is further exacerbated by the disturbing revelation that some energy firms are overcharging businesses, and potentially breaching their standard licensing conditions.
As a business owner and an active member of our community, I have had the privilege of witnessing the vital role that local enterprises play in sustaining our economy and fostering job growth. However, I have also seen firsthand the financial strain placed on businesses due to the unabated rise in energy costs. The burden is becoming increasingly unmanageable, and it threatens the very existence of many of our local businesses. In fact, my restaurant closed as a result of the energy crisis in August 2023, adding to the 11,000 businesses closed this past 12 months alone.
The issue at hand is compounded by energy companies overcharging businesses, which raises questions about their adherence to the standard licensing conditions put in place to protect consumers, including local businesses. My business was charged and billed at extortionate rates which has recently revealed to have been over Β£10,000 higher than the actual usage of the meter. The current figure is likely lower still whilst investigations are ongoing.
Knowing now that these costs were never as high as made out, my business has closed when in fact, could have continued and covered the minor increase it now appears to have been.
Overcharging not only exacerbates the financial hardships faced by businesses but also erodes the trust that the public places in these companies.
It has also become apparent that energy companies are not aware of the Standard Licensing Conditions and regulations imposed by Ofgem. For example, the energy firm in question was not aware of their duty to wipe of 12 months of overcharged debt to microbusinesses and their legal counsel was in fact using Google whilst on the phone to find the requirements.
How many of those 11,000 businesses have closed due to overcharging by energy firms? How many small businesses owners have been put under pressure and strain due to energy companies not adhering to the standard licensing conditions and regulations?
How many more businesses and business owners need to suffer before change is made?
In light of this, I implore you to take immediate action and champion the cause of local businesses by:
1. Lowering Energy Prices: Energy prices are simply too high and we need urgent review into pricing, particularly for small and medium enterprises, to protect as many business as possible.
2. Mandatory Audits: Advocating for mandatory audits of energy firms to investigate any potential overcharging or breaches of their standard licensing conditions.
3. Transparent Pricing: Pushing for greater transparency in energy pricing mechanisms and encouraging regulators to monitor these prices more closely to ensure that businesses are not being unfairly treated.
4. Strengthened Regulations: Working with relevant government departments to enhance regulations governing energy providers, including penalties for firms found in breach of their licensing conditions.
5. Support for Businesses: Calling for additional support for businesses facing financial distress due to overcharging. This may include temporary relief measures, grants, or low-interest loans.
Our local businesses are the lifeblood of our community, and it is our duty to ensure their sustainability and success. Your advocacy on this matter is crucial in rectifying the injustices faced by businesses and upholding the integrity of the energy sector.
I request your immediate attention to this pressing issue and your commitment to fostering a fair and competitive energy market that truly benefits our local businesses. I look forward to hearing about the steps you are taking to address these concerns.
Please feel free to contact me if you require any further information or if you would like to discuss this matter in greater detail.
Sincerely,
Owen Twidale
