Energy companies have been accused of making outrageous demands on hard-pressed West Midlands companies - refusing to supply unless there is big money up front.

Now Business Voice WM is urging regional MPs to take up the issue when the House of Commons West Midlands Grand Committee sits for the first time on October 8, moving out of Westminster and using Sandwell College in Oldbury as a venue.

The timing of the debate has been seen by some as controversial, coming on the day David Cameron will deliver his keynote speech to the Conservative Party Conference in Manchester - so leading to tough decisions for regional Tory MPs as to where to be.

Given how badly the recession is still hitting the West Midlands BVWM is urging short term action to tackle five main areas - energy prices, credit insurance, short time working assistance, liquidity pressures and the staggering of tax payments.

In its report to MPs, BVWM gives a series of examples of what has allegedly been going on:

• Company A - Because credit insurance had been lost, it was being asked for a four month deposit amounting to £185,000.

• Company B - This firm having just left administration had lost its credit rating as a result, and was being asked for three months payment upfront.

• Company C - It has been asked, in order to secure contracts for the remainder of the year, to deposit £100,000 in a suspense account for gas and £150,000 for electricity.

• Company D - Eventually found an energy provider, but ten companies refused to even tender or asked for excessive deposits. The reason given was a credit insurance ban on any company supplying the construction industry.

One firm is quoted as stating: "The whole thing is scandalous. All this feels like abuse of a monopoly position. If we applied the gas suppliers' stance we would have no customer base left."

The report goes on: "Manufacturers feel under the cosh. We believe action is urgently needed to turn this very serious situation around."

BVWM says similar horrors still apply to credit insurance.

The report says few of the country's smaller turnover businesses are able to benefit from the Government's 'top-up' domestic scheme. And, in addition, many companies will miss out because it does not include reinstating limits that have been pulled completely, instead applying only to companies where cover has been reduced.

Hopes for a version for exporters appear problematic.

The report goes on: "At a time when exporters should be benefiting from a weaker pound as compared to our major international competitors, the severe restrictions are a restraining factor in getting the UK out of the economic downturn.

"We are very concerned that the Export Credit Guarantee Department, in their consultation document on this matter, states the guarantee will 'be targeted primarily at emerging markets and developing countries'. For many Midlands businesses, this focus will be seen as another blow during this difficult economic climate as export credit insurance is not just being restricted for emerging markets and developing countries, serious though this is, but also to key EU member states and other major nations. For instance, we are well aware of export credit insurance restrictions to Portugal and the United States."

BVWM also wants the on-going staggering of tax payments via HM Revenue and Customs to continue.

It notes: "The Government brought in the scheme to enable businesses to phase their payment of taxes and come to an amenable agreement with their local HMRC office.

"However, in recent weeks, we are receiving reports that HMRC are informing businesses these arrangements are coming to an end. With the West Midlands region in a deeper recession than the rest of the country - and with expectations that the UK economy will be going through a 'W' shaped recession - this step by HMRC, if implemented, could be the straw that breaks the camel's back for many small and medium sized businesses."

The West Midlands has been the most badly affected UK region in the recession, with one in five of 16-25 year olds out of work. Property, manufacturing and retail have been particularly badly hit.