Ofgem to increase business energy contract protection

Article posted

26th Jul 2023

Read time

2-3 min read


Mollie Pinnington

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Currently, businesses have a different level of protection when it comes to energy depending on their size and energy usage. For example, when an energy supplier or broker is dealing with a micro business, they must adhere to certain practices.  These policies are there to ensure smaller businesses do not get unfair treatment due to their lack of resources such as a finance team.

Ofgem is however now going to extend microbusiness safeguards to all businesses. This comes as many businesses have complained of the treatment, they have faced from the energy industry throughout the energy crisis.  Due to this Ofgem is planning to better protect all businesses going forward to ensure they do not endure the same suffering if energy prices start to rise again.

As well as giving businesses more protection Ofgem is also planning to ensure businesses are provided more transparency on energy payments.  Alongside this, the regulators will establish schemes where businesses can dissolve any issues, they have with their energy suppliers or brokers quickly and effectively.

A lot more businesses have recently been put on deemed rates which are usually amongst the most expensive energy rates you can find. Consumers are placed on deemed contract rates when customers have not yet agreed to a specific contractual term with their energy supplier after their contract has come to an end. Ofgem will improve the guidance on these rates to prevent businesses from being overcharged.

Overall, with this, the regulator is planning on being able to offer better protection for businesses and improve customer confidence in the industry.

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