Ofgem To Take Tough Line On Business Energy Suppliers

Tue, 22 Nov 2011
 
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Ofgem, Britain’s energy watchdog, has announced plans to crackdown on suppliers who make it hard for UK businesses to switch to another energy provider.

The regulator’s proposals aim to make it easier for firms to change suppliers and also put an end to practices that often sees firms being automatically rolled over into new contracts, which can last up to three years, without their knowledge or permission.

The plans, which are part of Ofgem’s reform of the entire energy market, include introducing new enforcement standards of conduct into supplier's licenses, backed with financial penalties, to improve supplier behaviour towards UK businesses.

According to the group, recent research found that some companies were prevented from switching because of a high number of objections from suppliers.

The watchdog said it now wants to ensure businesses receive clearer information about when their contracts are due to expire and what they can then do to find a new energy supply deal .

Ofgem chief executive Alistair Buchanan said: "Ofgem is now proposing a series of reforms to ensure that business customers get a better deal from their energy supplier and greater protection for those using energy brokers. This will greatly increase the protection for businesses, especially for smaller firms."

"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."