Telecom firm to cut energy bills

British Gas may have raised domestic bills by 7 per cent, but it is looking to help small businesses cut their costs.

XLN Telecom, the largest supplier of telecoms services to small UK businesses, has teamed up with British Gas Business and E.On to help companies reduce their energy bills. XLN's energy division will negotiate with the two energy giants on behalf of its clients to arrange cheaper utility contracts.

British Gas and E.On will pay XLN a fee for any of its customers who agree contracts. It is thought that other energy companies have similar arrangements with XLN.

The private-equity backed firm, which was founded by Christian Nellemann, has 120,000 clients – typically businesses with less than 10 workers. It launched the service for customers grappling with rising utility bills. XLN said small businesses's average winter heating bills would hit £394 a month up from £152 during the summer.