Wednesday 26 July 2023

Ofgem to strengthen business energy contract protection

The UK’s energy regulator, Ofgem, has today unveiled its intentions to improve protections for businesses in the energy sector.

The proposed measures include extending micro-business protections to cover all businesses, ensuring that energy bills provide transparency on payments to energy brokers and establishing a redress scheme for businesses to resolve disputes more effectively.

Additionally, Ofgem aims to address concerns surrounding “deemed contract rates” for customers who have not yet agreed to specific contractual terms with their energy supplier.

By providing better guidance on these rates, the regulator aims to prevent potential issues like overcharging, thus enhancing consumer confidence and trust in the industry.

The regulator has also appealed to the government to consider introducing further protections, particularly in areas it lacks the power to regulate, such as energy brokers.

The proposed changes also call for businesses to have access to the energy ombudsman, allowing them to seek resolution and assistance when facing difficulties with their energy suppliers.