Businesses are to be given free support to resolve issues with their energy contracts as government and Ofgem set out to tackle cowboy practices like hidden fees, inaccurate energy bills and pressurising sales tactics for energy contracts.
Organisations with fewer than 50 employees will be entitled to free support from the Energy Ombudsman on disputes with their energy supplier. It will extend the service to cover 99 per cent of all businesses in Great Britain.
The Ombudsman has the power to order suppliers to provide compensation of up to £10,000 or take action to resolve issues – such as raising standards for their customers, or to credit or amend customer accounts.
The move will also enable businesses and other organisations to settle disputes with their energy broker via the Ombudsman, without the need for costly legal proceedings – as part of changes set out by the government and Ofgem today. It is a first step in a crackdown on rogue energy brokers targeting small organisations with thousands of pounds in hidden fees.
Energy Affordability Minister Amanda Solloway has warned energy brokers to end these unacceptable practices, with the government planning to consult later this year on regulating brokers and other third-party intermediaries. She said: “All businesses deserve to get a good service from their energy supplier – and today’s changes will empower small businesses with free redress support via the Ombudsman.
This is just the beginning. Rip-off energy brokers have no place in our market and we will act to raise standards for customers.”
Energy brokers are used to help small businesses and organisations, like charities or schools, find the best energy deal for their needs – which larger businesses often manage in-house. This can leave smaller organisations vulnerable to unfair fees, with only the courts as a route to redress.
