Micro-business energy concerns Energy Policy into Practice: slides for advisers

What’s the issue? Micro-businesses find themselves facing many of the same problems in the energy market as domestic consumers BUT they enjoy fewer protections and support They are also expected to shoulder a disproportionate amount of the green energy cost burden New regulations are being discussed by Ofgem in several areas of concern to us – there will be big changes in 2012

Consumer Focus position view In many areas we want protections and regulation upgraded to the domestic level e.g. we have big concerns with back-billing (up to 6 years) and the ease of disconnection if not paid Back-billing rules are now being introduced but will take several years to establish. Ofgem is also keen to establish new “best practice” on debt recovery Government has traditionally not paid much concern to this area; DECC interest now is in business’ role in smart meters and Green Deal, not the market per se

The consumer experience Telephone brokers are unregulated and some use dishonest marketing that gives businesses bad deals. Ofgem however is seeking new powers to accredit them Roll-over contracts continue to confuse businesses and result in punitive tariffs Tariffs are higher than domestic and are expected to rise even more up to 2020 to pay for climate change policies Payment problems become disconnection problems quickly thanks to suppliers’ blunt approach to debt – best practice needs work here

Policy challenges? Ofgem will be extending protections to bigger businesses (up to 50 employees) There are ongoing consultations and engagement opportunities with government regarding the rollout of smart meters and business participation in the Green Deal Debt and disconnection rates need to be monitored regularly Broker accreditation needs to ensure suppliers take responsibility for “bad” contracts

Want more information? Andy Hallett and Hannah Mummery work on micro-business energy issues at Consumer Consumer Focus micro-business information at advice/energy/business Ofgem advice at