Pulford-based Innovative Energy Consultancy says hundreds of local businesses will benefit from new rules that will force electricity and gas suppliers to treat SMEs more fairly.
Ofgem is introducing new rules that will come in to force this summer. They include:
- Enforceable standards of conduct for suppliers so smaller businesses get fairer treatment
- From next winter, all bills for smallest firms must show the contract end date so businesses know when they can shop around
- Smaller firms will be given more time to tell their supplier they want to switch
- Up to 160,000 extra businesses will benefit from clearer contract information
- Ofgem will review whether automatic rollover contracts should be banned
Mike Jones, MD at Innovative Energy Consultancy, says: “This is welcome news. Small businesses are the driving force behind our local economy and should expect to be treated fairly by energy suppliers. We work with dozens of local businesses because it can be difficult and time-consuming for them to shop around for the cheapest supply and to understand and compare the various contracts on offer. The introduction of these new rules will certainly help small business owners who have to keep an eye on energy costs as well as a myriad of other priorities.”
Ofgem says the new standards will require suppliers to treat firms which typically spend up to £10,000 per fuel on gas and electricity in an honest, transparent and professional way. This will apply to when suppliers are billing, contracting with and switching customers.
The standards mean suppliers will have to act promptly to put things right when they have made a mistake. They will also have to treat businesses more fairly when back-billing, a major concern to small companies. Ofgem also wants to tackle rogue brokers that are mis-selling energy to businesses.
