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Ofgem's recent Non-Domestic Market Review Decision sets out significant changes aimed at improving the experience of business energy consumers. Here's a summary of the key findings and the decisions made as a result of extensive stakeholder engagement and reviews:
A major outcome of the review is the expansion of the Standards of Conduct, which previously applied mainly to microbusiness consumers. This expansion now includes all non-domestic customers, enforcing a higher standard of fairness across the board. This change is designed to ensure that businesses of all sizes receive equitable treatment from energy suppliers, with a specific focus on transparency and fairness.
Ofgem has decided to update the Complaints Handling Standards to ensure that suppliers establish suitable processes for Small Business Consumers. This includes pointing dissatisfied customers towards the Energy Ombudsman when issues remain unresolved. The aim is to provide businesses with more robust support in resolving disputes, thereby alleviating some of the pressures they face.
Suppliers will now be required to work only with TPIs that are members of a redress scheme when securing contracts for Small Business Consumers. This change ensures that businesses have access to dispute resolution mechanisms, offering a layer of protection against potential malpractices by TPIs.
The review also highlights the need for clearer disclosure of TPI service fees across all non-domestic contracts. This transparency is intended to help businesses better understand the costs associated with third-party services and ensure that these fees are justified and clear.
The review emphasized continued collaboration between Ofgem, the government, industry stakeholders, and consumer groups. This cooperative approach is crucial in addressing ongoing and emerging issues in the non-domestic energy market, such as contract complexities and service expectations.
Significant emphasis has been placed on improving access to support and redress mechanisms. The new rules facilitate easier access to Citizens Advice and other support services for Small Business Consumers, which was previously limited to Micro Businesses. This expansion is particularly crucial given the complexity and scale of challenges faced by larger businesses.
Finally, Ofgem plans to enhance its monitoring of supplier behavior to ensure compliance with the new standards. The regulator has expressed a commitment to taking action against suppliers that fail to treat their customers fairly, underpinning this stance with a more robust enforcement strategy.
Ofgem’s review and the subsequent decisions mark a proactive step towards creating a fairer and more transparent business energy market in the UK. These changes are expected to empower businesses, improve service standards, and ensure fair treatment across the energy sector.
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