Recent updates from Ofgem promise to bring much-needed changes in how businesses are treated in the non-domestic energy market. The goal of these changes is clear: to ensure that all businesses receive fair treatment, greater transparency around energy broker fees, and enhanced dispute resolution support. At The Smart Energy Company, we’ve long prioritised transparency and customer-focused service, which puts us ahead of these regulatory changes.
Ofgem's New Energy Rules for Businesses: What Are the Key Changes?
Starting in July 2024, Ofgem’s new energy rules for businesses are set to reshape the way companies interact with energy suppliers and brokers. These new regulations aim to ensure that businesses of all sizes are treated fairly, with clearer information and better dispute resolution processes.
Key changes include:
Expanding the Standards of Conduct: Previously, these standards only applied to Micro Businesses, but they will now cover all non-domestic customers. This gives Ofgem the power to take action against suppliers that don’t treat businesses fairly.
Enhanced Support for Small and Micro Businesses: From December 2024, businesses that fall into the Micro and Small categories will be directed to Citizens Advice and will gain easier access to the Energy Ombudsman for dispute resolution.
Greater Transparency Around Broker Fees: A major update coming in October 2024 requires that all energy brokers clearly display their fees, ensuring that businesses know exactly what they are paying for, including third-party charges.
These Ofgem energy rules for businesses are designed to protect companies and make it easier for them to navigate the often-complex world of energy contracts.
How Transparent Broker Fees Benefit Your Business
One of the most impactful changes in the new Ofgem energy rules for businesses is the requirement for greater transparency around broker fees. Historically, some energy brokers added up to 3p/kWh on top of the base energy rates. While this practice wasn’t illegal, it often resulted in businesses paying more than necessary.
You have the right to know what you're paying for. Unsure of what commission was included in your current contract from another broker? Contact them to find out – you may be surprised. Online comparison websites typically include a set commission of 0.7p/kWh, so while it might be easy to secure a contract, you could potentially find a cheaper option by working directly with a broker like us.
Let’s take the example of a restaurant using 250,000 kWh annually for gas:
Broker A’s Fee: 3p/kWh Total broker fee: 250,000 kWh * £0.03 = £7,500
Our Fee: 0.5p/kWh Total broker fee: 250,000 kWh * £0.005 = £1,250
In this scenario, the restaurant could have saved £6,250 by working with a more transparent broker like us. By clearly displaying all fees upfront, we ensure that you know exactly what you're paying for, helping you make informed decisions and maximise savings.
This change in the Ofgem energy rules for businesses will help close the gap between brokers and customers, making it easier for you to trust and understand the services you're receiving. With our commitment to transparency, you can be confident you're getting the best deal.
Why Clear Communication and Dispute Resolution Are Essential
The new rules also emphasise the importance of clear communication between businesses and energy suppliers. Ofgem’s research showed that many companies felt dissatisfied with their energy suppliers due to poor customer service, unclear communication, and unexpected price hikes.
To address this, the Ofgem energy rules for businesses require that:
Suppliers must direct businesses to dispute resolution services, such as the Energy Ombudsman, if issues arise.
Energy brokers must be part of an approved redress scheme, ensuring that businesses can seek independent help if they feel a broker hasn’t been transparent or fair.
At The Smart Energy Company, we’ve always prioritised clear, open communication. We work hard to ensure our clients are fully informed every step of the way, and we provide direct access to help if any issues arise. The new Ofgem rules simply reinforce the standards we already follow, giving you peace of mind that your energy needs will always be met with honesty and professionalism.
Supporting Your Business with Ofgem’s Energy Rules
These new Ofgem energy rules for businesses are set to provide a fairer and more transparent energy market for all. By October 2024, brokers and suppliers will be required to meet stricter standards, providing businesses with greater clarity and better customer service.
But why wait until October to benefit from these changes? At The Smart Energy Company, we already offer transparent pricing, clear communication, and excellent customer service. Our dedication to transparency means that our clients already know what uplift fees we charge well before these rules come into play.
If you're tired of hidden fees and poor customer service, now is the perfect time to switch to an energy broker that prioritises your business needs. Contact us today for a free, no-obligation energy quote, and start saving with a company that’s already ahead of the new Ofgem energy rules for businesses.
0151 459 3388 | info@smart-energy.uk
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