UKHospitality calls for Ofgem to ‘name and shame’ energy suppliers

UKHospitality (UKH) has written to energy regulator Ofgem in a bid to make them penalise all examples of bad practice by energy suppliers.

The group has stated that since the energy cap was raised last year they have come across examples of energy companies raising rates above wholesale prices, hiking standing charges, demanding large deposits, and in some cases refusing to work with hospitality.

It is calling for Ofgem to publish the results of its inquiry into the non-domestic market as soon as possible and ‘name and shame’ the businesses considered to have acted in bad faith.

UKH also wants energy suppliers who have customers on fixed contracts at over double the Government’s floor price to be compelled to offer a renegotiation of contracts. It also wants an end to blanket withdrawal of quotes to sectors.

Where Ofgem does not have the power to meet these requests UKH has asked that they ask the government to intervene through legislation.

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.

“Day after day, we get more reports from businesses with another example of how an energy supplier is demanding outrageous sums of money to secure a contract on sky-high terms or, even worse, won’t even engage on a contract simply because a business works in hospitality.

She added: “I’m pleased that the Government took our reports about this situation seriously and that Ofgem began its inquiry. However, we now need to see the conclusion of that investigation and urgent action as soon as possible. With support being greatly reduced from April, businesses are heading into the most perilous financial position yet.”