Small businesses have seen the daily fixed price they pay, regardless of usage levels, increase dramatically over recent months, and nearly two thirds (62%) of small businesses said that the cost of utilities continued to be a major driver of increased costs for small businesses.

The Federation of Small Businesses (FSB) has called for the energy regulator Ofgem to take urgent action to address the punitive standing charge costs and a lack of transparency.

FSB has written to Ofgem’s chief executive Jonathan Brearley criticising the ‘specific, negative impact standing charges are having on small firms’.

The letter from Tina McKenzie, policy and advocary chair at the FSB, said: ‘Ofgem should look at how these standing charge hikes compound the challenges and rising costs faced by SMEs, against a backdrop of brittle economic performance for the nation, and difficult trading conditions for many small firms, especially those in hospitality and retail.’

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