Envantage Ltd has welcomed the moves by Ofgem, aimed at protecting small businesses and preventing poor practise by some energy firms. Does more need to be done for larger businesses?
Ofgem is to start working with Citizens Advice to help microbusinesses avoid bad energy deals, which have resulted in some charities, care homes and other smaller businesses paying as much as 50% commission on energy rates.
Under the new rules, which come into force later this year, all energy brokers will be forced to disclose how much commission they charge, and to offer a 14 day cooling-off period for new deals.
Who will be protected?
The regulations are aimed at microbusinesses, with Ofgem partnering with Citizens Advice to help make business owners more aware of their rights and the new regulations.
Envantage welcomes this move by Ofgem but Colin Hindmarsh, Envantage’s Managing Director, was keen to point out that the problem isn’t restricted to very small businesses: “While we’re very encouraged by the new rules and how they should protect microbusinesses, it’s important for larger businesses to be aware of the possibility that their energy broker may charge high commissions. Most energy brokers are honest, so if your broker isn’t disclosing how much you’re paying for their services up front, you have the right to ask.“
If you are unsure about your current energy deal, we can help to find out whether it’s the right deal for your business. Give Envantage’s experts a call on 0161 448 7722 or find our contact details here.