Last chance to have your say on Ofgem's Retail Market Review
There’s not much time left to give your feedback on Ofgem’s Retail Market Review - the deadline is 15th February 2012.
Ofgem is proposing changes to the business energy market in four main areas:
1. Protections for smaller business customers
Ofgem currently offers protection to microbusinesses, which are businesses that consume less than 200,000 kWh of gas or 55,000 kWh of electricity a year, or have fewer than ten employees and an annual turnover, or an annual turnover of €2m or less. It’s suggesting that these protections be extended to small businesses with less than 50 employees and an annual turnover of no more than €10m. Find out more about the protections for microbusinesses.
Ofgem is also proposing changes to rules about rollover contracts; currently a lot of businesses end up paying over the odds for their business energy because their energy supplier automatically extends their contract.
2. Objections to switching
Another issue businesses face (and which we frequently come across) is their current energy supplier objecting and holding up their switch. Ofgem thinks this process doesn’t work as well as it could and is proposing changes.
3. New accreditation scheme for third party intermediaries (TPIs)
Ofgem is suggesting that there should be a new accreditation scheme for energy brokers and third party intermediaries. It is also asking the government for powers to regulate brokers and act on misselling.
4. Enhancing standards of conduct
Business energy suppliers currently have very few supply licence rules; Ofgem wants ‘stronger and broader’ standards of conduct to give businesses more confidence in their energy supplier.
What's our take on these proposals? Well, we've blogged about this at length before, but in short we're in support of anything that Ofgem does to improve transparency and encourage a competitive market, but we think the Review is just the start of a much-needed overhaul.
For more information on business energy rules, regulators and schemes visit our partner company Business Juice.
Use the following link to trackback from your own site
- The draft Energy Bill: a five-minute summary
- 60% increase in business energy costs as average turnover falls by 6%
- Business week in brief: 11th May 2012
- Ed Miliband and the Queen talk energy
- Interview with Steve Fitzsimons of new business energy supplier, Hudson Energy
- Business week in brief: 4th May 2012
- The see saw of corporate profit
- Business week in brief: 27th April 2012
- EDF Energy’s Business Customer Commitments: four key pledges
- Businesses buck the trend when it comes to smaller energy suppliers