By Daniel Hunter
The Federation of Small Businesses (FSB) has welcomed the announcement from EDF Energy that it will end automatic ‘lock-ins’ for small firms.
This follows similar announcements from British Gas, npower and SSE. This means that small firms with Scottish Power and E.On are still at risk of being rolled over on to an un-negotiated contract.
“The Federation of Small Businesses (FSB) welcomes EDF’s move to end automatic rollover ‘lock-ins’ for its small business customers. The energy supplier has listened to the campaign," John Allan, National Chairman, Federation of Small Businesses, said.
"One in four FSB members have been locked into contracts with un-negotiated price increases and we welcome the Prime Minister’s determination to tackle this issue. In addition the FSB is working closely with Number 10 to ensure the best possible deal for small businesses in the energy market.
“It is good news that EDF plan to introduce a tariff for out-of-contract small firms that freezes prices for a year. This will allow firms to switch to a more competitive in-contract rate should they wish to without having to pay exit fees.
“We now want to see the big six to go one step further and publish small business energy tariffs so that SMEs can easily compare one supplier’s price to another without having to contact different suppliers or rely on an energy broker. We look forward to working with the Number 10 SME energy working group to deliver this.”
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