Ofgem proposes new business protection measures

Proposals to expand protections to drive excellent customer service for businesses have been set out by Ofgem.  

The energy regulator has launched a statutory consultation on proposals to ensure businesses get the highest standards of service and provide more clarity on the costs being paid to third party energy brokers. 

Business groups have repeatedly told Ofgem that they need more support with energy issues and the announcement follows extensive engagement with energy suppliers, companies and other groups, who highlighted several issues.   

Tim Jarvis, Director of Markets for Ofgem, said “Businesses are no different from any energy customer and should be able to expect excellent service and fair prices. However, we have heard from too many businesses, particularly small and medium sized ones, that this isn’t always the case.”

“Today’s proposals will ensure better deals, better protection and more clarity for businesses – so they have the best chance of thriving at this difficult time.” 

Tina McKenzie, Policy Chair at the Federation of Small Businesses, said “We welcome the launch of the consultation on Ofgem’s proposals to provide greater protection for businesses. It shows the energy regulator has listened to our calls to take action against poor customer services and narrow the treatment gap between small businesses and domestic customers.”

“We’ve been repeatedly calling for greater access to the Energy Ombudsman, which currently only applies to microbusinesses (with 10 employees or under). The Department for Energy Security and Net Zero is right to adopt our proposal to extend access for firms with fewer than 50 employees.”

“Many of our members rely on energy brokers to secure the best deals though the costs of these services are often hidden in their supply contracts. Requiring energy companies to show the two costs separately will give a better understanding to small businesses of what they are paying for and help build confidence in the Third-Party Intermediaries industry.”

“Expanding existing rules on Standards of Conduct to all businesses regardless of their size is also a welcome move. This will send a clear message to energy suppliers that there would be no tolerance of unfair treatment of their small business customers.”

“Today’s announcement is encouraging news, and we hope these proposals will be implemented swiftly.”