The Energy Advice Line has welcomed a government initiative to
protect failing but viable small and medium-sized firms from having
their energy supplies disconnected.
Under the plans,
struggling SMEs will have their gas, electricity, water and essential IT
services safeguarded while administrators put together a financial
rescue package.
Suppliers will have their payments
guaranteed before other creditors so that they can be certain their
bills will be prioritized. Only if bills remain unpaid 28 days after the
rescue package has been implemented will they be allowed to disconnect
services.
Julian Morgan, managing
director of the Energy Advice Line, one of the UK’s leading price
comparison, switching and advice service for energy consumers, said the
plan would come as a relief for small firms.
“Many
businesses that are struggling financially are fundamentally sound but
need emergency help to get back on track," he said. "This is impossible
if businesses can’t continue trading, and of course they can’t continue
trading without essential services like gas and electricity.
“This
initiative makes sound economic sense, not just for the UK as a whole,
but also for the small firms and their suppliers. It means that many
businesses could be saved from financial ruin, jobs will be protected
and suppliers will be more likely to be paid. It’s winning policy all
around.
“The plan also sends a signal to suppliers that
disconnecting energy supplies with undue haste does not help anyone and
that flexibility is key.
“In our experience, this
initiative has the potential to help a large number of small and
medium-sized firms get through difficult times.”
Insolvency
specialists hope that more types of suppliers will be added to the list
to prevent them from “trying to steal a march on other creditors and
take advantage of their importance to struggling businesses.”
The proposals, came into effect in October 2015.
The
Energy Advice Line is one of the UK's leading price comparison and
switching services for business and domestic energy customers. It is
also an advocate for energy market reform and has campaigned for a
better deal for energy users, including calling for a ban on cold
calling and changes to regulations to make it easier for all consumers
to switch suppliers.
The service is completely
independent and free. Consumers can quickly and simply search the market
for the best available energy deals from an extensive panel of small
and large energy suppliers. The service also offers a free advice line
for business energy customers.
For further information visit www.energyadviceline.org.uk
