E-Serve supports investment in renewable energy programmes.
Business electricity customers have in the past raised concerns at OfGem’s perceived back-track on measures to protect small and medium sized businesses from automatic contract roll-over and assumed renewal tactics when their contracts were due to be renewed.
Now it emerges energy regulator OfGem could be split in two by the Conservative Party if they win the next general election. E-Serve is a self-financed division of the regulator that administers government-based environmental programmes and it gets its money by levying fees on utility companies generating renewable energy, for example with wind farms.
Because of the pledge to cut carbon emissions by 34 per cent by 2020, E-Serve looks likely to be a profitable business. It runs schemes including the Renewable Obligation Certificate, which supports investment in wind and marine energy developments, and the feed-in tariff, in which household and business electricity customers are encourage to undertake their own small-scale electricity generation via such things as solar panels.
The Conservatives also plan to reduce the role of OfGem as a strategic advisor to the Government, with the aim of creating a more stripped down market regulator and protection body for consumers of domestic and business energy.
Of course, the question this raises for business energy customers is whether this will mean OfGem will do more to protect SMEs from tactics such as contract roll over – bringing the protection into line with that afforded to domestic electricity and gas customers.
Assumed renewal was frowned on by business customers for many years. The initial proposal written by OfGEm for industry consideration in summer 2009 did not allow the supplier to assume the contract renewal, but this was amended in the final release in October after the industry had an opportunity to counteract the proposal.
New rules came in to effect on 18 January 2010, giving some protection but seen by many business energy customers as a “watered down” version of the original recommendations.
Business energy customers now have to be contacted a minimum of 30 days before the end of their contract with an explanation of advice available, and key terms and conditions must be explicit before entering into a contract.
For impartial advice on your business energy contracts and to find the best price for your business gas and business electricity, contacting an independent advisor such as Energy Advice Line can help.
Energy Advice Line’s advisors are also on hand to help with any queries you may have about business energy contracts.
Do you think the plans to split OfGem could be good news for business energy customers? Let us know by leaving a comment.
Read the full story about the Conservatives’ plans in The Times.
Picture credit – CCA: Off-Shore Wind Farm Turbine by phault from Flickr
Tags: Business Electricity, Business Energy, Green energy, OfGem
