Leading trade bodies representing more than 200,000 businesses have renewed calls for greater transparency in the business energy market to help tackle rising costs for SMEs.
Industry groups are warning that systemic transparency failures are driving up costs for SMEs at a critical moment for the economy.
Sarah Edwards MP, a member of the Business and Trade Select Committee, has recently called for improved trust and transparency within the business energy market. Her comments echo concerns raised by major industry groups, including UKHospitality and the Federation of Small Businesses, who warn that a lack of clarity in pricing continues to drive up costs for SMEs.
Trade bodies argue these are not isolated issues but “signs of a market that is failing smaller firms”.
Industry groups including UK Hospitality and the Federation of Small Businesses are now urging the UK Government to fast-track regulation of third-party intermediaries (TPIs), arguing that brokers operating without sufficient oversight are contributing to confusion, poor deals and higher costs.
Sarah Edwards, MP for Tamworth and member of the Business and Trade Select Committee, said:
“Small and medium-sized businesses are the backbone of our economy, yet too many are facing unnecessarily high energy costs due to a lack of transparency in the market. It is vital that we rebuild trust by ensuring clear pricing, proper oversight of intermediaries, and a system that works fairly for businesses of all sizes. I will continue pressing both ministers and Ofgem to urgently introduce the regulation needed to protect businesses and restore confidence in the market.”
Association of Convenience Stores Chief Executive Ed Woodall said:
“Independent retailers often have the same level of resource and expertise about the energy market as domestic consumers, but do not benefit from the same protections. With almost one in ten retailers reporting they have been overcharged by their energy supplier, the gap in these safeguards is having real consequences. Businesses need transparency across every element of their energy contract, enforced by the regulator, so they can understand what they're paying for, challenge it where necessary, and take proper control of their costs.”
