OFGEM has announced a strategic review of the microbusiness energy market to better understand and address the issues faced by microbusinesses. OFGEM has concerns that the energy market isn’t working as well as it should for microbusinesses. The complexity of the market with its wide variety of contracts and lack of accessible information about prices means some microbusinesses find it hard and costly to engage in the market to find a better deal.
This consultation document sets out Ofgem’s draft Forward Work Programme for the extended period of 2019-21. It also sets out how Ofgem intend to simplify its regulatory approach, with the aim of reducing burdens for industry, and how it will operate in an efficient and effective way.
The Retail Exit Code (REC) was put to provide protection to business customers until competition in the retail market becomes fully functional. It is designed to provide default protection to customers who have not actively selected their water supplier in areas where the incumbent has exited the market.
We are consulting on our proposed approach to future retail price protections that will apply from 1 April 2020. Our proposals include changes to the protections for all customers as well as simplifications to the way the price protections are implemented.
Ofgem has opened a consultation inviting views on their proposal to introduce a 12-month backbilling licence obligation. The licence obligation would benefit microbusinesses and domestic consumers.
Ofgem have launched a call for evidence on whether they should impose a limit on how long suppliers can backbill for and whether such a limit should apply to non-domestic consumers as well as domestic.
The Water Services Regulation Authority has opened a consultation on the proposed changes to third party intermediaries voluntary code of conduct.
Ofwat are consulting on their proposed approach to monitoring the new business retail water market. The new market will mean more than 1.2 million eligible businesses, charities and public sector organisations in England will be able to choose who supplies their water and wastewater retail services.
The Competition and Markets Authority has launched a consultation on one of their remedies following their inquiry into the energy market. The CMA are consulting on their proposal to prompt people and microbusinesses to switch energy supplier if they have been on a default tariff for more than three years.
As part of the Competition and Market Authority’s investigation into the energy market, they published a number of provisional remedies which could address challenges identified.
The remedies include helping microbusinesses through improved price transparency, tackling ‘rollover’ contracts with greater notice periods and ending termination fees which prevent switching as well as moves to prompt and engage.
Ofwat has launched a consultation on their draft Code of Practice for the non-domestic market. The Code provides protections for non-domestic customers by requiring price transparency from suppliers, restricting back billing and limiting the use of auto-rollover contracts.
