Tackling the increasing cost of energy
This week, the BRC supported the launch of the Trust and Transparency in Business Energy (TNT) Charter at Portcullis House, led by Sarah Edwards MP. The Charter responds to growing concern about the structure of the UK’s non-domestic energy market and the rising costs facing businesses.
Businesses in the UK pay around 30% more for electricity than European competitors, and nearly half now cite energy as the biggest driver of rising costs. Businesses across hospitality and retail report being trapped in complex tariffs, mis-sold contracts and unregulated broker arrangements, with little clarity over standing charges and non-commodity costs. Opaque and volatile bills make planning difficult and undermine confidence in the market.
High energy costs are therefore not only squeezing margins but also limiting businesses’ ability to invest and grow, creating a barrier to the Government’s wider economic growth objectives.
The Charter sets out principles to address structural problems in the UK market, including a lack of competition, high standing charges, rising non-commodity costs, and the electricity and gas price imbalance that slows investment in electrification. It calls on the Government, Ofgem and DESNZ to use existing legislative powers to mandate greater disclosure and standardisation in order to improve competition and reduce costs.
The aim is for energy suppliers and brokers to sign up to the Charter as a visible commitment to best practice and fair treatment of businesses when procuring energy. By shining a light on good practice, it creates a reputational incentive for responsible behaviour and encourages higher standards across the market.
The Charter calls for:
- Standardised, upfront disclosure of the full cost of electricity
- Clear, enforceable rules on sales and pricing
- Simple switching and genuine supplier choice
- Stronger protections for SMEs
- Secure access to energy data to drive innovation
Sarah became interested in energy reform after a business in her constituency faced issues with overcharging by their energy provider. She asked the Prime Minister during Prime Minister’s Questions whether he would support the campaign.
Sarah Edwards, MP for Tamworth, said:
“Too many businesses are operating in an energy market where the true costs are hidden and fairness is far from guaranteed.
When pricing is opaque and commissions are buried, competition cannot work properly and smaller firms end up paying more. The TNT Charter sets a clear standard for transparency and accountability.
I am calling on suppliers, brokers and trade bodies to sign and show they stand for fair dealing. The Government and Ofgem already have the powers to act — they must now use them. I will continue pushing for these reforms in Parliament until transparency and fairness are the norm in business energy.”
Chris Owen, Payment Policy Advisor at the BRC, said:
“From refrigeration and heating stores to transport and logistics, retailers use huge amounts of energy to meet the needs of their customers. Yet rising energy prices are adding to the significant cost pressures already bearing down on the retail industry. These costs are holding back investment in prices, innovation and growth, and eroding competitiveness.
Urgent reform is needed to make energy billing transparent, tackle non-commodity costs and standing charges, and allow retailers to benefit from rebate schemes aimed at energy-intensive industries.”
The Charter is supported by trade associations including BRC, UKHospitality, ACS, NFRN, FSB, BIRA, BBPA and the Startup Coalition. This marks the first stage of collective action planned over the coming months to advocate for reforms to tackle rising energy costs, including non-commodity costs.
