Businesses are significantly more vulnerable to exploitation and unfair practice by energy firms according to the British Chambers of Commerce (BCC).

It urged the energy regulator Ofgem earlier this week to re-examine the way energy firms deal with businesses and the British Plastics Federation (BPF) supported the move.

Regulations give domestic customers a level of protection from energy price rises but businesses are not shielded in the same way.

Director general of the BPF, Peter Davies, told PRW.com that he had unearthed examples of plastics, moulding and packaging firms being presented with price increases of up to 100%.

He added: “When they come to make a deal they are told they have to accept it today or lose the price.”

Davies argued that these practices could seriously affect plastics businesses. He said: “Energy suppliers have got to take their industrial customers seriously.

“Big increases in energy are having a substantial impact on plastics firms who are already hit by the high oil price through their raw materials.

“Energy suppliers should extend the same consideration that they do to domestic customers, which they are obliged to do by law.”

The BCC has urged energy regulator Ofgem to investigate the way businesses are treated by energy companies. In particular, it asked why businesses must have long term contract commitments with suppliers for up to five years, while domestic customers can switch every 28 days.

It also questioned why verbal contracts are immediately binding for companies, yet domestic users are entitled to a cooling-off period.

The BCC wants to see an independent watchdog set up dedicated to focus on the energy concerns of businesses.

David Frost, director general of the British Chamber of Commerce said: “With the economy slowing and energy bills on the rise, it is totally unacceptable that hard pressed businesses are left so open to exploitation by energy suppliers.

“Ofgem’s investigation into the industry must hold the suppliers to account over the very apparent lack of transparency and fairness in their dealings with business.”