The issue of inflated standing charges is particularly concerning for small businesses in rural areas. Due to the higher costs of delivering energy to homes and businesses in these areas, standing charges tend to be higher. This has created a disproportionate impact on rural businesses, exacerbating the divide between rural and urban areas. The FSB has highlighted that this situation undermines efforts to promote economic growth in more remote parts of the UK.
In response to the growing concerns, Ofgem has initiated a review of standing charges, inviting feedback from both businesses and consumers. The regulator aims to assess how standing charges operate and explore potential changes to the system. The FSB has emphasized the need for greater transparency and fairness in how energy companies determine these charges, particularly for small business customers.
The FSB has called for Ofgem to ensure that small businesses have the same level of protection as households when it comes to energy bills. They argue that small businesses often lack the resources and expertise to negotiate favorable deals with energy suppliers. The federation believes that a thorough review of standing charges is essential to safeguard the interests of small businesses and promote a more equitable energy market.
