02/03/2010 - Small firms energy costs 'too high'
Smaller firms are urged to shop around for the best energy prices, which they are missing out on compared with bigger businesses, say Government figures.
Average electricity prices for small and medium-sized firms increased by 15% to 17% between the third quarter of 2008 and that of 2009. Large businesses saw 9% to 11% increases and the UK's biggest companies just 5%.
British Gas and Scottish Power are among energy firms which were accused of raising prices to boost profit margins and not passing on cuts in wholesale energy costs to domestic consumers.
The FPB's Finance Director, Nick Palin, commented: "While the big energy companies always pass on wholesale price increases in full the same cannot be said when prices fall. This is the tip of the iceberg. By refusing to play fair some utilities giants have forced costs on small businesses they can ill afford."
In recent research carried out by the FPB more than 84% of respondents cited rising utilities costs as a 'major concern'.
Copyright © Press Association 2010
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