How we can play our part to help businesses in an unregulated energy market?
Ofgem, the energy regulator, has plenty on its plate. Not least prioritising across domestic and business energy markets, with prices on the rise. Political influence pulls Ofgem towards the domestic market, but it has rightly set its sights on greater scrutiny on the business market.
Unregulated business energy
An unregulated business energy market is open to a whole variety of unscrupulous characters. There needs to be greater scrutiny of how some brokers operate in this space. Ofgem’s announcement that it is due to conduct a strategic review of the microbusiness retail market is welcome. It may prompt further action to help prevent businesses overspending on energy.
troo is working with ElectraLink, who provide expertise to several energy industry codes, to help develop a memorandum of understanding and a code of principles. This should hopefully lead to an initial code of conduct in the next quarter, but codes aren’t mandatory, so the question remains if it has the desired impact.
Switch energy provider
We know there are a huge number of one-man bands and small businesses trying to make ends meet, with little protection. Missing the opportunity to renew or switch energy provider could pose serious financial problems for them. They may end up on deemed rates, paying up to 80% more than contracted rates. Or locked in deals over the long-term, paying well over the odds.
Nearly 40% of UK businesses do not switch energy provider when they get the chance. That’s quite a staggering amount considering the money that could be saved! Many just roll over their contract, paying hugely inflated sums. Whether lack of knowledge, or time is the issue, these ridiculously high charges need to be addressed. Companies need support understanding switching, as this market is made overly complex.
We must all do our bit to help make the market fairer, as businesses are really struggling with rising prices. But perhaps the only thing going to put a strong enough stance on this is regulation – which has to be government driven.
If you need advice on your energy bill, or switching energy provider, give us a call on 0808 1642222, for some free support.
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