Ofgem has been urged to address a rise in standing charges that has seen energy bills for small business increase by as much as 13 times over three years.
However, while the cost of energy for domestic customers is regulated with the energy price cap, no such cap is imposed on the bills of small businesses. “However, they do not benefit from anything like the same level of protection as that rightly available to households, leaving them caught between two stools.
Standing charges are often higher in rural areas, where the cost per home to the energy supplier is higher. The FSB said this meant the charges were disproportionately affecting businesses in rural areas.
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