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Micro-business energy concerns

Micro-business energy concerns. Energy Policy into Practice: slides for advisers. What’s the issue?. Micro-businesses find themselves facing many of the same problems in the energy market as domestic consumers BUT they enjoy fewer protections and support

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Micro-business energy concerns

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  1. Micro-business energy concerns Energy Policy into Practice: slides for advisers

  2. What’s the issue? • Micro-businesses find themselves facing many of the same problems in the energy market as domestic consumers • BUT they enjoy fewer protections and support • They are also expected to shoulder a disproportionate amount of the green energy cost burden • New regulations are being discussed by Ofgem in several areas of concern to us – there will be big changes in 2012

  3. Consumer Focus position view • In many areas we want protections and regulation upgraded to the domestic level e.g. we have big concerns with back-billing (up to 6 years) and the ease of disconnection if not paid • Back-billing rules are now being introduced but will take several years to establish. Ofgem is also keen to establish new “best practice” on debt recovery • Government has traditionally not paid much concern to this area; DECC interest now is in business’ role in smart meters and Green Deal, not the market per se

  4. The consumer experience • Telephone brokers are unregulated and some use dishonest marketing that gives businesses bad deals. Ofgem however is seeking new powers to accredit them • Roll-over contracts continue to confuse businesses and result in punitive tariffs • Tariffs are higher than domestic and are expected to rise even more up to 2020 to pay for climate change policies • Payment problems become disconnection problems quickly thanks to suppliers’ blunt approach to debt – best practice needs work here

  5. Policy challenges? • Ofgem will be extending protections to bigger businesses (up to 50 employees) • There are ongoing consultations and engagement opportunities with government regarding the rollout of smart meters and business participation in the Green Deal • Debt and disconnection rates need to be monitored regularly • Broker accreditation needs to ensure suppliers take responsibility for “bad” contracts

  6. Want more information? • Andy Hallett (andrew.hallett@consumerfocus.org.uk) and Hannah Mummery (hannah.mummery@consumerfocus.org.uk) work on micro-business energy issues at Consumer Focus • Consumer Focus micro-business information at www.consumerfocus.org.uk/get-advice/energy/business • Ofgem advice at www.ofgem.gov.uk/Consumers/Pages/Bc.aspxs

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