Energy Contract Overhaul: 99% of UK Firms Now Shielded from Exploitation

At Utility4Business, we understand the challenges that small businesses, schools, and charities face when it comes to managing their energy contracts. That's why we're pleased to share the latest news from the UK government and Ofgem, which aims to provide extra protection for these organisations from being overcharged in their energy contracts.

New Rules for Small Businesses

Under the new rules, companies with fewer than 50 employees (around 99% of all firms in Great Britain) will now be covered by the Energy Ombudsman. This means that if you have any issues with your energy supplier, you can get free support from the ombudsman to resolve the problem.

Previously, only companies with fewer than 10 employees were covered by these protections. The expansion now extends this support to an additional 200,000 businesses.

Transparency in Energy Broker Contracts

Many small businesses use energy brokers to find the best deals on their energy contracts. However, this can sometimes leave them vulnerable to unfair fees and practices.

To address this issue, Ofgem is introducing new changes that require brokers to provide full transparency over fees in their contracts. This will allow businesses to better assess what they're getting and make informed decisions.

Additionally, energy suppliers will be banned from working with brokers who are not signed up to a redress scheme, ensuring that businesses are protected from unscrupulous practices.

Implementation Timeline

Some of these changes will come into force from July 1, while others will be implemented by the end of the year.

At Utility For Business, we're committed to helping our small business, school, and charity customers navigate these changes and ensure they're getting the best possible deals on their energy contracts. If you have any questions or concerns, please don't hesitate to reach out to our team for assistance.

Remember, if you ever feel like you've been overcharged or treated unfairly by your energy supplier, you now have the right to seek help from the Energy Ombudsman. We're here to support you every step of the way.