Small businesses needs fuel price protection

Small businesses need protection by the electricity market safeguards to prevent further escalating of energy bills the Federation of Small Businesses (FSB) warned in a new report. They are asking the government to ensure that safeguards are in place around carbon pricing to assure that small businesses get treated as domestic users.

As the government unveils While Paper on Electricity Market Reform the FSB is concerned. The Government announced in the 2011 budget plans to make reforms to the electricity market introducing carbon pricing. Their aim is to make nuclear and renewable energy more attractive sources of energy and lower the dependence of the UK on fossil fuel.

In the Small Business and Infrastructure: Energy report the FSB argues while it is in support of incentives to help with investment in low carbon infrastructure there must be safeguards placed to stop generators of electricity from passing on to consumer the carbon prices by increasing prices further.

Energy companies have sharply increased prices over the last three to five years said the National Chairman of the FSB John Walker, yet even more increases over just the past few weeks.

This all comes at a difficult time for small firms and is one more thing preventing them from being able to take on staff and grow their business, precisely what the Government is asking of them. Safeguards need to be put into place and the Government needs to ensure they will in order to protect consumers including small firms.