Amidst the energy crisis, energy companies are facing increasing pressure to allow struggling businesses to modify their gas and electricity contracts, following the lead of two major suppliers who have agreed to reduce rates that were fixed during the height of the crisis.
EDF has committed to offering new contract terms to 15,000 small and medium-sized businesses that are currently locked into long-term contracts set during a historical peak in energy market prices last year. Eligible businesses, including independent shops, hairdressers, and small factories, will be presented with contracts featuring lower rates for extended periods, aiming to make their energy bills more manageable.
This decision from the French energy company comes in response to mounting calls from business groups for energy suppliers to reevaluate existing contracts. British Gas had already taken the step to lower costs for its customers.
According to the Federation of Small Businesses (FSB), nearly 100,000 businesses remain at risk of financial strain after entering into long-term energy contracts last year when market prices soared to record highs during the third quarter. These businesses are currently bound by contracts that require them to pay inflated prices based on last year's peak, for potentially several more months or even years.