As a microbusiness owner, are you hesitant to work with a broker when renewing your energy deals, for fear of hidden charges and commission fees? The latest Ofgem announcement may help make ‘rogue brokers’ a thing of the past.
At Experienced Energy, we are proud to be considered a fair, open and transparent energy broker. Unfortunately, we are all too aware that there are some energy brokers on the market that are not as clear in their methods of communication with customers, which often leads to miss-sold contracts or incorrect advice being followed. We are therefore pleased to see that earlier this month, Ofgem proposed a series of new regulations which aim to protect our smallest businesses from getting trapped in bad energy contracts.
Our Operations Director Craig Watson believes the movement is long overdue but thinks brokers can still do more in the short term to make immediate changes.
‘The reason we exist as a business is to try and support the many businesses across the UK who aren’t receiving the best advice from companies they trust. There are far too many companies out there using brokers and they aren’t aware of how brokers earn their commission, and whilst that remains the case, it’s impossible for customers to validate whether they’re getting a good deal.
Our ethos is to be open, honest and transparent with every conversation and we’re comfortable in recommending to our customers that they benchmark our services, as we truly believe having more than one broker in the conversation will increase the chances of getting the best advice’
If you run a microbusiness, the proposals in this latest policy consultation would protect your company from those dishonest brokers on the market who aim to make a big profit at your expense. Ofgem are supporting small businesses to access brokers who are reputable and provide true value for money.
|Suppliers to only work with brokers that operate in a fair and honest manner, who are part of an independent dispute resolution scheme.|
|New sales and marketing rules for suppliers and brokers to ensure customers are fully informed when selecting a contract.|
|Brokers required to be open and transparent about commission payments.|
|Introduction of a 14 day cooling off period for microbusinesses when starting a contract.|
|Introduction of 30 day contract extensions if a supplier switch is blocked.|
|Removal of the requirement for microbusinesses to give suppliers notice of intent to switch.|
The proposals aim to create a more open and transparent market for energy deals, and will place microbusinesses in a much better position to get the best deal possible. This is incredibly timely, with many microbusinesses planning their recovery from the largely disastrous impact of COVID-19.
The only drawback as of today is the fact proposals are currently subject to consultation, and set for implementation in 2021, which leaves the rest of the year still free for bad practice within the industry and this is something we’re keen to highlight.
We often receive enquiries from customers who are looking for clarification on a number of issues and if you feel you have some unanswered questions about your own energy contracts, please get in touch and we’ll make sure we can support and provide peace of mind.
For more information about how the team at Experienced Energy can assist your business to find the best possible deal for you, please contact us on 02475 094 090 or email us at email@example.com