In its submission to Ofgem’s non-domestic market review, ACS has expressed overall support for the proposals aimed at expanding contract protections for businesses and improving the transparency of billing information. However, ACS emphasizes the need for further action to prevent retailers from being subjected to costly deemed rates, particularly during a change of tenancy process.
Currently, suppliers have the power to cause delays and confusion during a change of tenancy, leaving retailers vulnerable to expensive out of contract rates, known as deemed rates. ACS urges Ofgem to introduce a time limit for suppliers to complete the change of tenancy, and to ensure that previous pricing is maintained during the process, thus avoiding the application of deemed rates. Such measures would align the non-domestic market more closely with the protections offered to domestic consumers.
ACS’ CEO, James Lowman, commented, “Retailers have faced significant challenges with their energy bills in the past year, often operating at a loss due to excessive fixed contracts. While prices are now decreasing, the non-domestic energy market still lacks adequate standards and practices. Therefore, we appreciate Ofgem’s efforts to address these issues, and we urge them to go further in ensuring a fair and transparent market for all businesses.”
In its consultation document, Ofgem presents several proposals to improve the fairness of the non-domestic energy market. These include requiring timely responses to complaints, expanding the application of conduct rules and access to the Energy Ombudsman beyond microbusinesses, and implementing fairer deemed rates to prevent undue burden on businesses. Ofgem also aims to enhance bill transparency, ensuring that businesses comprehensively understand price changes and the additional charges resulting from engaging with third-party intermediaries (TPIs). Additionally, Ofgem proposes extending TPI dispute resolution facilities to larger non-domestic customers and advocating for government regulation of the currently unregulated TPI market.
For more details, ACS’ full submission to Ofgem can be accessed here https://www.talkingretail.com/news/industry-news/ofgem-urged-to-stop-suppliers-putting-retailers-on-unnecessary-deemed-energy-rates-31-08-2023/.
