Ofgem to make it easier for businesses to change energy suppliers
November 24, 2011 at 4:21 pm
Ofgem, the energy regulator, has announced that it is going to bring in a number of measures to protect businesses from unfair practices which are currently used by some energy providers and brokers. The move comes as part of Ofgem’s overhaul of the energy market.
One of the biggest problems highlighted by Ofgem following its review is that many businesses are finding that their energy contracts are renewed without them knowing once they have come to the end.
These contracts can sometimes last for years, and this is something which Ofgem wants to change.
It wants to introduce measures which will mean that energy suppliers will have to provide businesses with a clearer notice of when their contracts are coming to an end so that they can make a more informed decision about whether they would like to continue with it.
It also wants to make it easier for businesses to be able to change their energy providers in the future to take advantage of more competitive deals.
It has warned that those energy suppliers who do not conform to the new regulations will have to pay fines as a result, although it did not go into details about the size of these.
As a part of its new measures to make the energy market more fair for business customers, Ofgem is also going to seek new powers which it currently lacks to take action against brokers.
All in all, the new measures sound like very good news for business energy customers and will hopefully lead to a simpler and fairer system.
