Ofgem tackle business energy suppliers
Ofgem (the energy watchdog) is planning to revamp the way UK businesses change their energy supplier in a bid to make it more easy. The main concern is that firms are often getting rolled over into new contracts without their knowledge. In some cases, some suppliers are preventing firms from switching supplier at all.
This comes as part of a widespread overhaul of the energy market which also proposes to make the energy market more simple and more competitive for households.
Now, Ofgem has dished out a new standard of conduct, backed with financial penalties to improve supplier behaviour towards businesses.
Ofgem want businesses to get clear warnings when their contracts are due to end, as well as information about how to find a new energy supply deal should they wish.
Ofgem's chief executive, Alistair Buchanan, says: "During our investigation into the energy market, businesses told us about a range of problems they were having with energy suppliers and also some energy brokers. As we have demonstrated in the domestic market, we will also take a tough line on any suppliers we find systematically breaching rules designed to protect businesses."
That's not all. Ofgem are set to ask the government for new powers so that the watchdog can enforce action directly against brokers for misleading companies in the business sector which they are currently unable to do.