Business: Energy
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure that energy suppliers pass on price reductions to business customers in a timely manner.
Answered by Chris McDonald
The government recognises that high electricity prices are a significant pressure on businesses and a barrier to investment and growth. The only way to bring electricity bills down sustainably is by reducing the UK’s exposure to volatile fossil fuel markets, which is why business energy affordability is closely linked to the government’s Clean Power mission.
My Rt hon Friend the Secretary of State wrote to business energy suppliers last month, setting the very clear expectation that small business energy customers must be treated fairly, including by third party intermediaries, who many small businesses rely on to negotiate their energy contracts. This set out the expectation that pricing needs to be fair, transparent and fully justifiable, reflecting genuine market conditions.
To ensure we do not see unfair practices continuing, in the upcoming Energy Independence Bill we will be bringing in new regulation of third-party intermediaries, such as energy brokers and price comparison websites, as a further measure to protect small businesses from harmful practices like mis-selling and untransparent pricing.
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