Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Calls for action on energy standing charges to small firms

7 May 2024

Small businesses in the UK are facing steep rises in the standing charges they pay to energy firms, putting them at risk of closure.

The Federation of Small Businesses (FSB) has written to the energy regulator Ofgem asking it to take action on the standing charges paid by small businesses, many of whom have seen the daily fixed price they pay soar over recent months - regardless of their usage.

"Many thousands of small firms are now stuck on tariffs which are far higher than before, which is a leading driver of cost increases. While it's possible for most firms to cut their energy use - something which many did in response to spiralling bills - the standing charge must be paid day in, day out, so ensuring that small firms aren't being fleeced is absolutely vital." Tina McKenzie, FSB policy chair.

The FSB letter highlights the "specific, negative impact standing charges are having on small firms". It comes after the energy secretary, Claire Coutinho, and the minister for affordability and skills, Amanda Solloway, wrote to Ofgem in March, urging the regulator to "ensure that bills are fair and affordable for all consumers".

FSB has pointed out that this issue applies to small firms as well as households. What's more, business customers are not covered by the energy price cap for consumers and FSB reports that many small firms suspect that their costs have been hiked as a result. It also says that small businesses in rural areas have been disproportionately affected by standing charge increases.

Energy price hikes

One small firm reported an increase in its daily standing charge from 70.94p per day in July 2021 to 969.64p per day in September 2023.

Ofgem has asked for views on standing charges via a Call for Input, to which FSB has responded. The cost of utilities continues to be cited as a major driver of increased costs for small businesses, with three in five small businesses (63%) reporting this in FSB's Small Business Index for Q4 2023.

Commenting on the issue, FSB policy chair Tina McKenzie said: "Many small businesses could be forgiven for suspecting that they have been seen as something of a soft target for price hikes in their standing charges, and they do not have a full picture of where the money they pay on a daily basis is going - something that needs to change. Small firms were put through the wringer by the energy price crisis, which sadly spelled the end for many otherwise viable businesses who saw their utility bills become completely unmanageable. We want Ofgem to do a thorough review of standing charges for businesses as well as consumers, for better transparency and to discern whether energy companies are behaving fairly towards their small firm clients."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.