Ofgem urged to probe “worst-behaving” energy suppliers

Businesses in the hospitality sector have been treated in a “disgraceful” way, UKHospitality has said

Big Zero Report 2022

The British hospitality industry has called on Ofgem to investigate the ‘bad practice’ and ‘reckless behaviour’ of energy suppliers.

UKHospitality has claimed that some of its members continue to report that energy suppliers are “offering rates above wholesale prices, hiking standing charges, demanding eye-watering deposits and in some cases, refusing to work with hospitality”.

UKHospitality Chief Executive Kate Nicholls said: “The behaviour of energy suppliers over the past four months has been nothing short of disgraceful. It’s clear some rogue companies saw the significant intervention by the government to support business as nothing more than a cash cow.

“The worst culprits should be named and shamed by the regulator and all suppliers that have engaged in this sort of behaviour should be compelled to go back to their customers to renegotiate their prices.

“If businesses don’t have a route to renegotiate, thousands will be stuck on extortionate fixed tariffs that they were heavily encouraged to agree to.”

An Ofgem spokesperson told ELN: “Ofgem’s priority is to protect consumers and ensure they pay a fair price for their energy. We are aware that some businesses are having problems in getting fixed-rate energy deals and also that some are being asked to pay large deposits by some suppliers, amongst other concerns.

“We are working with government and stakeholders to determine if further action or assistance is needed to help businesses, in addition to looking at compliance with existing requirements.”

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