June 27, 2017
New processes to support micro-businesses in the struggle with energy overpricing
New measures to stop microbusinesses being locked into expensive rollover contracts were put in place today.
The Competition and Markets Authority (CMA) concluded a two-year long investigation in June 2016. They found that around 45% of micro-businesses across Britain were on their energy supplier's costly default tariffs.
One of the CMA's recommendations was that suppliers have to stop locking small companies into automatic rollover contracts and that they have to make it easier for them to compare the cheapest energy prices. They have to do this by ensuring information is clearly available on the supplier's website, or via a link to a price comparison website.
Energy firms are now required to comply with the CMA's recommendation and had until yesterday to make to get the information live on their websites.
Dermot Nolan, Ofgem Chief Executive said:
"This is a big change in the way the market works.
We'll be working closely with suppliers to make sure they give micro-businesses clear information on the prices they offer in line with the regulation. We are considering what further steps could be taken to protect and help these business customers engage in the market as part of our wider programme to make sure all consumers - business and domestic - get a better deal."
The CMA expects the remedies to help micro-businesses save up to £180 million a year.
Smaller firms will also be able to leave more expensive auto-rollover default tariffs without having to pay exit fees.
As advocates for transparency and fair pricing, Energylinx for Business welcome these changes. You can find the best supplier for your business online or by calling one of our advisors on 01259 225400.
Posted on June 27, 2017 at 03:15 PM