Micro Business Energy | What you need to know
Micro Buisness Energy
OFGEM has laid down some special rules regarding Micro business energy contracts.
Do I have a Micro Business?
It is estimated there are 1.6 million Micro Business energy customers in Britain. To qualify if you fit the following criteria:
- employs fewer than 10 employees (or their full-time equivalent) and has an annual turnover or balance sheet no higher than 2 million euros, or
- consumes not more than 100,000 kWh of electricity per year, or
- Consumes no more than 293,000 kWh of gas per year.
In consumption terms, if your annual spend is less than £10,000 per annum net of Vat and Climate Change Levy, the chances are you are a Micro Business.
Check with your supplier if they have you classified as a Micro Business, they are required to take reasonable steps to identify qualifying businesses.
If they don’t, you can always supply them with the information that supports you are and remind them of their obligation to take reasonable steps to identify Micro Businesses.
The troocost team would be more than happy to assist with any queries.
Micro Business Energy Rights
Terminating a contract
One of the rights a Micro Business has is concerning the termination of an energy contract.
For contracts that commenced after 30 April 2015, the maximum notice period for terminating a Micro Business contract has been reduced from 90 to 30 days. The measure is to prevent suppliers from rolling a Micro Business into a new energy contract.
The measure also protects a Micro Business from falling into the higher charges of deemed rates which can be as high as 80% more than a negotiated energy contract. OFGEM estimate around 10% of Micro Business energy contracts are on deemed rates. Given the increased cost associated, it is worth taking to some time to look at this as soon as possible.
OFGEM has also ruled that suppliers must clearly state the contract end date and notice period on all bills for Micro Business customers with a fixed-term energy contract.
Suppliers must also take reasonable steps to acknowledge a termination notice within five working days of receipt.
The troocost team always recommend you terminate at the earliest possible time to avoid falling into deemed rates by accident. Talk to one of the team about troo assure which monitors your energy contracts, so you don’t have to.
Rolled over contracts
Failure to terminate your energy contract on time could mean you are entered into a rollover contract. As a Micro Business, this can only now be to a maximum period of one year.
New Contract offers
Suppliers must now clearly show the current prices, new prices and annual consumption on renewal letters for a Micro Business. The measure ensures you have all the information needed to make an informed choice at renewal time.
At troocost.com we are dedicated to fighting the corner of all businesses, big and small. Micro Businesses, in particular, are often so busy a deadline can be missed and errors made. That’s where troo assure comes in, we are in the background, checking your bills, monitoring your contract end dates, issuing your terminations and watching your back.
Call the troocost team no on 0808 164 2222 to see how we can help you.
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