Earlier this week, the British Chamber of Commerce asked energy regulator Ofgem to hold suppliers to account over the “lack of transparency and fairness” in their dealings with firms.
Whilst the BCC is to be applauded for speaking out against a rapidly growing problem, its suggestion that businesses be treated like consumer customers and offered the chance to switch tariffs every 28 days is both short sighted and ill advised, in our opinion.
The wholesale energy market model does not support this kind of arrangement – the only likely outcome would be even higher prices for customers, as suppliers inflate prices and introduce additional charges to offset the risk of losing the customer after just 28 days.
A much more feasible way to achieve transparency in energy pricing is to encourage customers to talk to as many suppliers as possible. This will ensure they achieve the best tariffs and don’t leave themselves open to hidden fees that their brokers had built into supply contracts, while claiming to offer a ‘free’ service.
It’s common sense really, yet promoting ineffective solutions similar to those available in the consumer market could further promote a lack of transparency amongst suppliers. Businesses need to manage the cost risk of energy prices, not be further exposed to unquantifiable price changes on a regular basis.
