Allow Small Businesses to Renegotiate Costly Energy Contracts

Edinburgh West MP Christine Jardine has called on the UK Government to encourage energy suppliers to renegotiate contracts with small businesses who are stuck on costly fixed price tariffs.

Despite the fact that wholesale natural gas prices have fallen more than 80 per cent, many small and medium sized businesses are stuck on higher-cost fixed deals. 

Company bankruptcies in Scotland rose by a third in the past financial year, as debts from during the pandemic contributed to 1,132 firms going under. 

And now the Federation of Small Business has warned that 93,000 businesses could face closure or cutbacks because of the size of their energy bills.  

Liberal Democrats have called on the Government to reinstate the Energy Bill Support Scheme to provide more generous support, and by extension cut food prices, help control inflation and protect jobs.

She said: “Small businesses that I have been speaking to in Edinburgh West tell me that the combination of cost of living crisis, business rates and energy prices are creating a perfect storm which threatens to put so many of them out of business.

“They are the backbone of our local and national economies, driving growth and supporting communities but the current situation facing thousands of businesses is approaching a crisis point.

“It is not right that after having to cope with covid induced debt and a very difficult winter, these businesses are still fighting with their backs to the wall stuck with high energy tariffs.  

“That is why I have asked the Government how it is going to encourage suppliers to negotiate contracts with small businesses.”