ACS (the Association of Convenience Stores) has welcomed a new consultation from energy regulator Ofgem, setting out a series of proposals to make the non-domestic energy market fairer, and for protections to be available to a wider range of businesses.
In the consultation document, Ofgem states that it ‘received numerous reports that the non-domestic market is not delivering to [its] expectations: with accounts of customers struggling to contract with energy suppliers, poor customer service, and larger price hikes than seem necessary. [Ofgem is] determined to investigate poor behaviour in the non-domestic sector and hold suppliers to account.’
Ofgem outline three main areas where they’re currently working to take action in the non domestic market. These are:
- Holding suppliers to account that are overcharging businesses not under contract through excessive deemed rates.
- Giving suppliers the clear message that they are expected to work with businesses dealing with high fixed contracts signed in the second half of 2022 to spread costs, reduce prices, and/or renegotiate contracts.
- Ensuring that energy contract switches that take place as a result of a change of tenancy or occupier are not unnecessarily delayed.
In the consultation document, Ofgem sets out a number of proposals for changes to the non-domestic energy market to make it operate more fairly for businesses. These include:
- Changing the rules to require timely responses to complaints, and widening the standards of conduct rules and access to the Energy Ombudsman beyond just microbusinesses
- Fairer deemed (out of contract) rates to ensure that they’re not ‘unduly onerous’
- Transparency on bills so that businesses understand price changes, and have clear information about additional charges that are added to their bills as a result of dealing with third party intermediaries (TPIs)
- Expanding TPI dispute resolution facilities beyond microbusinesses to include larger non-domestic customers
- Calling on the Government to regulate the TPI market, which is currently not directly covered by Ofgem
ACS chief executive James Lowman said: “We welcome Ofgem’s acknowledgement that the protections afforded to microbusiness customers should be expanded to include more businesses, and support proposals to regulate the TPI market, but this is long overdue. Ofgem have been looking at stronger enforcement against rogue TPIs and wider business protections for a decade, and to date very little progress has been made. We need immediate action to ensure that the energy market is working competitively and fairly for everyone.
“We are pleased that the plight of businesses who signed contracts at the peak of the energy contracts has been acknowledged, but those businesses need more support now. Government help was cut back too far, too soon, and the energy companies are not doing enough to help through moving to blend and extend contracts or offering early exit from agreements.”
The full consultation document is available here: https://www.ofgem.gov.uk/publications/non-domestic-market-review-findings-and-policy-consultation . ACS will be responding to the consultation in due course.
