England, UK (ContentDesk)February 9, 2006 — When it comes to extending supply agreements business customers are getting a raw deal from their electricity suppliers. Instead of being rewarded for staying with their supplier they pay up to 25% more than new customers of the same supplier. For the average business this is about 600 pounds a year more.electricity4business says, This is on top of huge price hikes of up to 140%. At a time when energy costs for businesses are spiralling out of control, the least firms should deserve is to be treated fairly.

The retreat from this practice began when companies operating in consumer markets and eager to attract new customers believed that offering reduced rates to new customers alone would boost their quest for market share.The biggest culprits were banks, insurance companies, telecoms and essential utilities. They all offered exceptional introductory rates in the hope that customers, usually tied in with direct debit accounts, and would fail to notice the increases when it came to renewal. And here we had the inception of a new market model which is now todays norm.

But for those who dared to question the renewal rates or God forbid, shopped around, there were the infamous save tools. Suddenly there was a reason why the incumbent service provider could match the quotation received from a competitor.Now it was always believed that companies would never get away with such practices in the business to business sector. Businesses would see through these dubious practices and would use the introductory offers to cut their costs, switching to a new introductory offer the following year.Well those who thought this were wrong.

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