The Federation of Small Businesses has welcomed a report by MPs into the consequences of rising energy bills.

 he Business and Enterprise Select Committee called for action today on rising gas and electricity invoices, and the FSB has reiterated its concerns that the situation will only get worse with the closure of Energywatch and has called for recognition of the similarity between small businesses and domestic consumers in the energy market.

In a recent FSB snap poll of more than 1000 business owners 57% have made complaints to their energy companies with only half of those complaints being dealt with satisfactorily.

Energywatch disbanded

With over 30,000 calls from small businesses received every year, Energywatch is a familiar brand to many business owners. But from October 1 2008 it will be disbanded.

The FSB is warning that Energywatch's work is unlikely to be covered by Consumer Direct, which will nominally take over Energywatch's responsibilities but has shown little willingness or ability to tackle small business energy issues.

John Holbrow, FSB environment and energy chairman said, “it is alarming that with increased prices there will be nowhere for small businesses to turn.”

Holbrow however did go on to say that , “the FSB welcomes the recommendations of The Business and Enterprise Select Committee on rising energy prices today and the recognition that these costs have an extremely adverse effect on business. “Small business owners are very similar to small domestic consumers in terms of energy consumption patterns and expertise but often fall foul of complex bill formats, infrequent meter readings, incorrect billing, poor customer service and lack of information on switching suppliers.

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