The energy regulator OFGEM has announced a series of reforms to address the current crisis in the energy sector.
The reforms will be released in several publications by the regulator covering the following subjects:
* Non-Domestic Market Review (Business Market Evaluation)
* Consumer Standards Statutory Consultation
* Minimum Capital Requirements for supplier finances
These can be accessed via the : https://www.ofgem.gov.uk/
Michael Kill CEO NTIA Says:
“While these proposed reforms are seen as a step forward, they will not provide immediate relief to the thousands of businesses within the sector who are facing further anxiety each time they receive an energy bill.”
“Some of the main concerns for businesses in the hospitality and night time economy is the issue of overzealous security deposits, unsubstantiated rates based on risk and the withdrawal or refusal of energy supply. These practices are still prevalent and are causing significant worries for businesses in these sectors.”
“In particular, mentioning the hospitality or night time economy to energy suppliers or brokers at the point of engagement can lead to higher charges, sometimes up to 15% more than our retail counterparts pay, or even result in a complete inability to obtain energy supply.”
“This has created a considerable loss of confidence in the energy sector, as businesses feel that suppliers have taken advantage of the vulnerability of these sectors.”
“Additionally, the government’s response to the energy crisis has been perceived as slow and inadequate, with the crisis already lasting for over a year and a half, and seemingly no end in sight.”
“An especially challenging aspect for the hospitality and night time economy is the perceived lack of support for non-domestic supply. While domestic supply appears to have received some level of assistance, the non-domestic supply has been limited, leaving many businesses in these sectors to fend for themselves, and resulting in some cases in business closures.”
“Overall, the situation in the energy sector remains concerning for businesses, and there is a strong need for comprehensive and immediate measures to support and stabilise the energy market for all sectors.”
