Business electricity and gas customers are being urged to submit their views to Ofgem about the behaviour of commercial energy suppliers and suggest ways to improve the non-domestic energy supply market.
The energy regulator is considering what further action it needs to take to make the UK’s energy supply market more effective for both householders and businesses. The deadline for submissions by businesses is February 15.
Late last year Ofgem announced a range of proposals aimed at making it easier for firms to compare business electricity prices and commercial gas tariffs, and simpler to change suppliers to get the cheapest business energy deals.
Ofgem has suggested a range of measures to address concerns that many small businesses have been tied into costly rollover contracts and terms they did not fully understand. It has recommended a code of practice for suppliers and business energy agents, as well as financial penalties for those organizations that do not comply.
The regulator has stated that it would prefer to implement reforms with the appropriate co-operation from business energy supply companies. But it has warned that if this is not forthcoming, it may force the hand of suppliers.
“If, following our consultative process, we consider that reforms do not have a realistic chance of addressing the concerns identified due to industry opposition or otherwise, we will consider a referral to the Competition Commission,” Ofgem says.
Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business, has welcomed Ofgem’s proposals. However, he has urged the regulator to give reforms “teeth” by appointing an official watchdog to ensure commercial energy suppliers comply.
“The reforms Ofgem has put forward are terrific in principal but will be fairly meaningless unless they are enforced,” he said.
“Businesses have had to put up with a great deal for too long by suppliers who have done everything in their power to make it difficult for them to switch providers in order to get cheaper business electricity prices and gas tariffs.
“They are rightly skeptical about whether these proposals will benefit them unless there is a body to enforce them.”
The Energy Advice Line is the UK’s only independent price comparison and switching services exclusively for small and medium-sized businesses. The service enables firm to quickly and simply compare business energy and business gas prices, and to switch to the best available deal on the market.
Mr Morgan said there was clear evidence that businesses which shopped around and switched suppliers for a better deal at renewal time achieved significant savings over those businesses that stayed with the same supplier year-on-year.
Businesses can also prevent being caught unwittingly in expensive rollover contracts with their existing suppliers by signing up with the Energy Advice Line’s free renewal reminder service. For further information visit www.energyadviceline.org.uk
Tags: Business Electricity, Business Electricity Prices, Business Energy, Business Gas
