Business Energy | How we can play our part to help business energy regulation?
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 improved business energy regulation.
Unregulated business energy
An unregulated business energy market is open to a whole variety of abuse. There needs to be greater scrutiny of how some brokers operate in this space. Ofgem’s announcement that it will conduct a review of the microbusiness retail market is welcome. It may prompt further action to help prevent businesses overspending on energy and the need for better business energy regulation.
troo is working with ElectraLink, who provide expertise to several energy industry codes and are helping to develop 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 will have 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, which is a staggering amount considering the money that could be saved! Many just roll over their contract, paying hugely inflated sums. Knowledge gaps and time pressures are a problem, but addressing these ridiculously high charges will be a major benefit. The energy market is overly complex, so businesses need help understanding how to switch their contracts. It is our view that businesses need protection now. A code of conduct that leads to better business energy regulation and protects consumers will have a positive impact.
We must all do our bit to help make the market fairer, as businesses are really struggling with rising prices. The government has to regulate, or businesses will continue struggling.
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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