Press Release

Lights go out for energywatch

29 September 2008

The Federation of Small Businesses (FSB) is decrying the demise of energywatch as the regulator shuts down this week.

Despite opposition from both politicians and the FSB, the watchdog officially closes tomorrow (Wednesday 1 October) leaving small businesses with little awareness of where to turn.

With over 30,000 calls from small businesses received every year, energywatch is a familiar brand to many business owners, but it will now be merged into Consumer Direct, the advice and support organisation, which only offers a limited service to small firms.

A recent FSB snap poll revealed that 57 per cent have made complaints to their energy companies.

Thanks to FSB lobbying, an Energy Ombudsman will be available for complaints from small businesses, but there is poor awareness of the new arrangements.

John Holbrow, FSB Environment and Energy Policy Unit Chairman, said:

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

“The good news is that new legislation which comes into force on 1 October means that energy companies will now be placed under much greater scrutiny from OFGEM, the UK’s gas and electricity regulator, to ensure they handle complaints better.

“In addition small businesses will also have access to an Energy Ombudsman that will have the power to resolve consumer complaints and, where necessary, make sure the problem is put right or award compensation. But awareness of this will take time.”