Energy firms squeeze SMEs for payment

Britain's big energy companies are forcing up to 250,000 small businesses to pay for their energy up to six months in advance.

In the current economic climate with cash flow tight for many small firms there are concerns that this new stance from energy companies could force some SMEs out of business.

Alistair Buchanan, chief executive of Ofgem, the energy regulator, called the companies to a meeting in London last week to express mounting concern about the practice.

"The energy companies have started using very aggressive tactics.... But asking for money upfront puts businesses in an even more precarious position," said Stephen Alambritis of the Federation of Small Businesses.

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