Ofgem gas released a new ‘Standards of Conduct’ that will require all UK based business gas or electricity suppliers to treat smaller sized business in a way that is fairer. This move to offer more protection for small businesses will hopefully bring more confidence to the business energy market.
The Standards of Conduct that Ofgem has released will require the UK’s business energy suppliers to offer fairer billing and contracts to small businesses. Ofgem have released information that there will be fines sent out to any energy suppliers who do not treat businesses in a fair way. Ofgems Standard of Conduct went live in the United Kingdom on the 26/08/2013 and apply to all business energy consumers who spend anything below £10,000 on energy.
Ofgem have also added extra safeguards that will be going live in March next year, this new safeguards will help in excess of 150K businesses in the UK get clear info on the contracts they receive from their business energy suppliers.
As you all probably know all of the Big Six energy suppliers have already stopped automatic rollover contracts, or released details that they will be in future. Well it looks like Ofgem are going to be enforcing this too, stating that business energy suppliers will only be allowed to automatically rollover business energy consumers for one year.
The business energy suppliers are going to have to make some swift changes in the way they do business unless they will face fines. This will include making sure their business electricity or business gas customers are fully aware of the full terms and conditions surrounding their business energy contract.
Currently any energy supplier can have a ninety day notice period before the end of any fixed term business energy contract. This period gives the consumers time to decide if they would like to search for a new gas or electricity supplier. This is all going to soon change though, as from March sometime next year, all business energy customers will be able to terminate their contract at any time during their contract. This is a very bold move by Ofgem and we hope that all of the UK’s energy supplier abide by the rules.
The energy regulator, Ofgem, is also going to be looking at ways they can deal with cowboy energy brokers, who are well known within the energy industry for mis-selling business energy contracts. Ofgem released details that state they have put a case forward to the Government asking for more to be done around rogue brokers. Appart of Ofgems code of conduct will make sure that energy brokers are transparent in the way they do business.