Ofgem confirms greater protection for businesses

Ofgem has announced new rules aiming to give businesses fairer treatment and more support when dealing with energy suppliers. The changes, which will be phased in from 1st July 2024, will apply to the non-domestic energy sector, covering all types of organisations from small shops and charities to larger businesses.

The regulator says the new rules are designed to improve customer service standards and make the complaint process clearer. Key aspects include expanding Ofgem’s remit to properly oversee how all business customers are treated, regardless of size. Currently, this support is only available to businesses of up to 10 employees, and households.

Suppliers will also have to signpost micro and small businesses to organisations like Citizens Advice if they have an issue.

The new rules will further address broker fees. From this autumn, any contract with a third party intermediary involved must disclose upfront what fees the business may have to pay. And from late 2024, if suppliers want to use brokers, those brokers must be part of an official redress scheme.

Tim Jarvis, Ofgem’s director general for markets, says:

“Too many businesses have experienced issues with some energy suppliers, from difficulty getting the right contracts, unexplained price hikes, and poor customer service. We’ve worked hard to understand the breadth of issues and where the powers we have to tackle them can be improved. These new rules will help ensure businesses get the service they deserve.

“We’ll be speaking to businesses of all sizes as these rules come into force throughout this year to make sure they are being followed by suppliers. We’ll also continue to work with government, industry, and consumer groups to see what else can be done to support non-domestic consumers.”