Industry is calling on energy regulators and suppliers to enable business owners to renegotiate their contracts to help stay afloat ahead of reduced government energy support for retailers.
The Guardian revealed that industry bodies, including the ACS and Federation of Small Businesses sent a letter to business secretary Grant Shapps yesterday, requesting for fairer contracts for vulnerable stores ahead of business support being dramatically reduced in April.
“We are urging [the business department] and Ofgem to encourage energy suppliers to allow the most vulnerable businesses to renegotiate or ‘blend and extend’ their energy contracts to reflect significantly lower wholesale prices now available,” it read.
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The letter went on to argue that retailers should be able to renegotiate their contracts with their energy suppliers if they can prove that they signed their contracts at high prices, and that their contract ends after the existing energy scheme in March.
Shops that signed fixed-price energy contracts between August and October 2022 are receiving an estimated discount between 25% and 55% on electricity under the existing scheme that stops in April.
From April onwards, the new scheme will see shops receive estimated discounts of only 0.7% off their gas and 2% off their electricity bills.
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