Trade fights for energy protection

Thousands of pubs could be excluded from protection over bad deals with energy suppliers under a new scheme being launched this autumn.

Pub trade leaders and energywatch have written to the Department for Business, Enterprise and Regulatory Reform (BERR) highlighting that only half of small businesses would be eligible for help under the new Energy Ombudsman scheme.

The scheme would see businesses being referred to an independent ombudsman to resolve deadlocked disputes with energy suppliers.

However under current plans the proportion of businesses to benefit will fall, as only businesses that use less than £5,000 worth of gas or electricity per year will be eligible for the scheme.

Punch Taverns estimates current proposals will mean that less than 25 per cent of its leased estate would have access to the ombudsman.

Adam Scorer, director of campaigns at energywatch said: "Calls from pub licensees continue to rise and we see no sign that energy suppliers are getting to grips with the major issues of mis-sold and punitive contracts and poor information on price and service.

"Robust complaint handling standards coupled with an accessible redress scheme need to be available to more pubs, not less."

The letter from pub leaders, including Nick Bish and Tony Payne, urges the government to stick to original proposals and set the threshold for access to the ombudsman at businesses with 10 or fewer employees and with a turnover no higher than €2m (£1.5m) per year.

This criteria is used in other European countries and if adopted, would give far more licensed premises access to the ombudsman and complaint handling, energywatch said.