Business Energy Market Review Findings and ConsultationOfgem requests information on the current business energy market

This July, Ofgem published its findings and policy consultation for its non-domestic market review which sought views on business energy market supplier pricing and contract prices, market competition and customer service, and opportunities for targeted support to specific customer groups.

In the consultation, Ofgem outlined its current actions, including addressing deemed contract rates and the Energy Bill Relief Scheme (EBRS), security deposits, fixed price contracts, and tenant/occupier transfers.

Additionally, it proposed changes to customer complaint regulations, conduct standards, transparency, deemed tariffs, and third-party intermediary (TPI) dispute resolution.

Furthermore, Ofgem recommended government actions such as enhancing TPI regulation, expanding Energy Ombudsman access, and ensuring domestic consumers on non-domestic contracts are protected.

The actions outlined by Ofgem are a result of the findings from its February 2023 call for input, and provide insight into the strategy it will take forward for creating a business energy market that offers consumers greater service, fair pricing, and access to resources required for the transition to net zero.

Ofgem is seeking feedback on its proposed policy changes until 6 September 2023. After reviewing the feedback, the regulator plans to publish its decision in autumn 2023.

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The business energy market review consultation gathered evidence from businesses, suppliers and consumer groups about where the market was and was not working well. Key outcomes included strengthened transparency requirements for energy brokers, new obligations on suppliers to provide clearer contract terms, and enhanced switching protections for smaller business customers.

These changes were implemented progressively through Ofgem regulatory framework updates between 2018 and 2022. Despite these improvements following the business energy market review, many UK businesses still face challenges navigating complex tariff structures, understanding broker commission arrangements and comparing like-for-like contracts.

Catalyst Digital Energy was established to give businesses transparent, expert guidance through exactly these challenges. If your business needs independent support with energy procurement or market access, speak to one of our energy consultants today.