UKHospitality has responded to the latest proposal from energy regulator, Ofgem, which has outlined an expansion of protections for businesses.
Kate Nicholls, Chief Executive of UKHospitality, said that some energy suppliers' treatment of hospitality businesses in the UK has been nothing short of disgraceful throughout the energy crisis, and not only are the proposals much needed, but they will provide some essential protection for businesses.
"Bringing all businesses under the umbrella of the Standards of Conduct will ensure a level playing field in the business energy market, and, crucially, mean action can be taken when certain standards are not met.
Nicholls has urged Ofgem to go further in its plans to expand the energy ombudsman and allow all businesses to have the ability to take complaints to it.
“Improving the transparency of broker fees is very positive and will put a stop to instances where businesses had been misled or unfairly treated by some brokers, which had become increasingly prevalent."
The proposal followed a review by Ofgem into the non-domestic energy market. The proposed set of protections included reviewed standards of conduct, new guidelines for brokers, and new regulations for energy ombudsmen.
Expanding existing rules on Standards of Conduct for all businesses was a top priority for UKHospitality, which stated the current rules only apply to interactions with microbusinesses. This change will make clear that suppliers should put customers first and would also allow Ofgem to take action if an energy supplier does not behave well towards any customer, regardless of business size.
Further guidelines will be introduced around transparency on what consumers are paying for third-party services to all business consumers. Many non-domestic consumers use third-party intermediaries (TPIs) such as energy brokers to help find the best deal for the business, and many good energy brokers often play a valuable and vital role in helping businesses confidently navigate the energy market.
Ofgem said that all customers should be clear on the costs of these services and the costs of their supply contract, so it is proposing to extend the requirement for energy companies to separately show the costs of using a broker to all businesses, not just micro-businesses.
Ofgem has also sought views on expanding suppliers’ Complaint Handling rules and requiring signposting to support services. These changes support the proposal set out by the Government to give Small Businesses with fewer than 50 employees the ability to take complaints about energy suppliers that they cannot resolve with them to the Energy Ombudsman. Currently, only ‘Micro Businesses’ can take disputes to the Energy Ombudsman.
“These are all measures that UKHospitality advocated for, and I’m pleased that Ofgem has listened to the concerns of hospitality businesses," said Nicholls.
"It’s imperative that these proposals are formally introduced as soon as possible – enhanced protections for businesses can’t come soon enough."
