Businesses are to get extra protection from bullying energy suppliers and brokers, according to the industry watchdog.
Ofgem vowed yesterday to crack down on electricity and gas firms making it hard for customers to switch to another provider.
The regulator is also concerned that some firms are being rolled over on to new contracts lasting up to three years, often without their knowledge.
As part of its reform of the energy market, Ofgem has set out new standards of conduct, with financial penalties to improve behaviour.
It is considering enforcement action against some suppliers after research found firms were prevented from switching because of a high number of objections from suppliers, including some that were later withdrawn.
Stuart Mackinnon, spokesman for the Federation of Small Businesses in Scotland, said: “Four-fifths of Scottish small businesses have seen their overheads rise over the last year, with the majority citing rising utility bills.
“While Ofgem’s announcement won’t decrease these bills directly, it should give more Scottish businesses more protection when they deal with energy firms.
“There’s still work to be done, especially in the field of small-business back billing and effective competition, however, Ofgem should be congratulated for making progress in the right direction.”
Ofgem said it wanted businesses to get clearer information about when their contracts ended and what renewal options were open to them. Chief executive Alistair Buchanan said: “During our investigation into the energy market, businesses told us about a range of problems they were having with energy suppliers and also some energy brokers.
“As we have demonstrated in the domestic market, we will also take a tough line on any suppliers we find systematically breaching rules designed to protect businesses.”
With Ofgem having no direct power over brokers, it is planning to ask the UK Government to allow it to take enforcement action against them for misleading marketing in the business sector.
Yesterday’s move came a month after Ofgem announced proposals for a simpler and more competitive energy market for households.
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