Enhanced energy protections act on hospitality’s ‘serious concerns’
Released On 17th Apr 2024
What's being introduced?
1 Standards of Conduct The Standards of Conduct rule is proposed to be expanded to include all customers to ensure that everyone receives fair treatment.
2 Energy Ombudsman The Government is proposing to expand access to the Energy Ombudsman to businesses who fit a new ‘Small Business Consumer’ criteria. Currently, only micro-businesses could access the Ombudsman.
3 Complaints Handling Standards It is proposed that these standards are widened to include businesses that fit the ‘Small Business Consumer’ criteria.
4 Brokers There are two proposals to address brokers. An existing rule will be expanded to ensure that energy bills clearly show costs associated to third parties, including brokers. This will be for all customers. Requirements for suppliers will also be widened to require suppliers securing Small Business Consumer contracts through third-party intermediaries (TPIs) to only work with TPIs who are part of a redress scheme.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “I’m very pleased that Ofgem has taken steps to enhance protections against unfair treatment by energy suppliers.
“UKHospitality and our members have been raising serious concerns about this issue for the past two years and this is a significant victory in our work to deliver a better energy market for hospitality businesses.
“The lack of protection for businesses was obvious for all to see and these changes demonstrate that our concerns have been heard loud and clear by the regulator.
“Extortionate energy costs have been a huge restraint on businesses over the past two years and the behaviour of some energy suppliers exacerbated that already challenging situation.
“I hope these measures go some way to mitigating these costs and protecting businesses, but I’d continue to urge energy suppliers to be proactive in supporting their business customers.”
