This past summer the energy regulator, Ofgem, announced the results of its Retail Market Review (RMR) consultation – part of its drive to deliver a simple, clear and fair energy market.
What the RMR changes should mean is greater transparency for all businesses. As part of the review, Ofgem has extended its definition of a micro-business. Before the RMR, businesses paying less than £5,000 for gas or electricity, or those with less than ten employees and a turnover of under €2 million, were placed in the category. Now, those spending around £10,000 (before VAT) for either gas or electricity are considered micro-businesses.
For these smaller businesses, energy suppliers will be required to ensure contract end dates are clearly displayed on bills and to highlight the last day by which a termination notice must be received. Suppliers will also have to adhere to new Standards of Conduct when billing, contracting and switching micro-businesses – ensuring transparency at every stage.
What Ofgem's Retail Market Review means for small businesses