Europe, UK (Commonwealth Union) – As part of efforts by the government and Ofgem to address deceptive practices in the energy sector, businesses will receive complimentary assistance in resolving issues related to their energy contracts. This initiative aims to combat practices such as concealed fees, inaccurate billing, and high-pressure sales tactics.
Small businesses employing fewer than 50 individuals will now have access to free support from the Energy Ombudsman to address disputes with their energy providers. This expanded service will cover 99% of businesses across Great Britain, fostering confidence and facilitating growth in alignment with the government’s overarching strategy to bolster the economy and enhance economic stability.
Empowered with the authority to demand compensation of up to £10,000 or implement corrective measures, such as improving customer standards or adjusting accounts, the Energy Ombudsman will play a pivotal role in resolving disputes between businesses and their energy suppliers.
Furthermore, this initiative extends the Ombudsman’s jurisdiction to encompass disputes with energy brokers, offering businesses and other entities a streamlined resolution process without the burdensome expense of legal proceedings. This marks the initial phase of a broader crackdown on unscrupulous energy brokers targeting small enterprises with exorbitant hidden charges.
This week, Minister Amanda Solloway, responsible for Energy Affordability, issued a stern warning to energy brokers, calling for an end to their unacceptable practices. The government intends to initiate consultations later this year to regulate brokers and other third-party intermediaries.
Minister Solloway, overseeing Affordability and Skills, emphasized the government’s unwavering support for British businesses, highlighting its commitment to standing by entrepreneurs.
“All businesses deserve to get a good service from their energy supplier – and today’s changes will empower small businesses with free redress support via the Ombudsman.”
Later this year, the government plans to consult on proposals for regulating Third Party Intermediaries, specifically energy brokers, within the energy market. Additional information regarding this consultation will be disclosed in the near future.
