Ofgem launches consultation on energy reforms for microbusinesses

Measures proposed in Ofgem’s consultation would amend the Standard Licence Conditions of energy suppliers to include: transparency over brokers fees and costs during the tender process, requiring suppliers to only work with brokers signed up to a qualifying alternative dispute resolution scheme, a 14-day cooling-off period for new contracts, and banning suppliers from requiring microbusinesses to provide notice of their intention to switch.

A store with energy costs of around £10,000 a year each for gas and electricity will typically fall into the category of microbusiness.

ACS chief executive, James Lowman, said: “This is a welcome step forward from Ofgem, but one that we have seen several times before. Many of the specific measures being proposed in this consultation have been being discussed and put forward in various guises for the last decade, but ultimately little action has been taken.

“We urge Ofgem to implement these reforms to the microbusiness energy market as soon as possible to give the smallest businesses the protections they need when dealing with energy companies and brokers.”

ACS said it will be responding to the consultation in due course.