Small businesses with up to 50 employees are now (from Thursday 19th December 2024) be eligible to access Energy Ombudsman’s independent dispute resolution services for the first time.
Energy Ombudsman, approved by Ofgem, provides a free and impartial service that aims to resolve disputes between consumers, suppliers and brokers in the energy sector.
The expanded remit will allow small businesses to resolve disputes with energy suppliers and energy brokers without resorting to costly and time-consuming court proceedings.
Ed Dodman, Managing Director and Chief Ombudsman for Energy said: “One of our key priorities is ensuring all consumers have full access to our service. We also believe businesses should have the same access as domestic consumers, therefore the extension of support for small businesses is very much welcomed. This means that more businesses have access to a free, impartial and independent body to help them resolve disputes with their energy supplier or energy broker. By extending the services to cover all small businesses, it fills an existing protection gap and means more organisations will be able to access the support they need.”
The expanded remit was first announced in April 2024 by the Department for Energy Security and Net Zero (DESNZ) as part of a broader initiative by the government and Ofgem to address hidden fees, billing issues, and the mis-selling of energy services. The changes ensure businesses can access free support to resolve disputes related to their energy contracts.
Minister for Energy Consumers, Miatta Fahnbulleh said: “Small businesses are at the heart of our mission to deliver growth, which is why we are making sure that disputes with energy suppliers do not unfairly hold them back.
“By extending Energy Ombudsman’s remit, 99% of UK businesses will now have an easy route to resolve issues with their supplier, if they arise, without disruption or costly court cases.
“It is a crucial step towards securing more comprehensive protections for energy consumers – making sure even more businesses can access the support they need no matter what their size.”
Previously, businesses with more than 10 employees had limited options for redress, with court proceedings often being the only recourse. This extension represents a major step forward in providing consumer protections for small organisations from unfair practices.
To coincide with its extended remit, Energy Ombudsman has announced an increase in the maximum award for non-domestic disputes with energy suppliers from £10,000 to £20,000, effective from 19 December 2024.
These changes aim to improve trust and transparency within the energy sector while offering businesses a simpler, free route to resolving complaints, and help with business energy bills.
For more information on Energy Ombudsman and its remit extension visit: https://www.energyombudsman.org/
