Energy regulator Ofgem’s new code of conduct for power suppliers in an effort to protect small businesses will build trust and give firms “more confidence”.
That’s the view of the trade body for the energy industry, which claims suppliers support the new rules that have been introduced this week.
The new standards include the need for energy companies to treat business customers fairly when they are billing and switching tariffs, with Ofgem given the power to impose fines if necessary.
Angela Knight, Chief Executive of Energy UK believes the rules will reinforce the suppliers’ commitment to treat small business customers both “fairly and openly”.
She added: “The energy suppliers have all made public commitments across the summer and we are working closely with customers, government, the regulator and others to set out in some detail how the new arrangements will work.”
Ofgem is also looking into bringing in new regulations for third party intermediaries (TPIs) such as energy switching sites and brokers as some have come under criticism for mis-selling and misleading businesses.
Ms Knight went on: “Our members are supportive of Ofgem’s increased focus on the energy broker market as they are not at the moment covered by the rules and regulations that the energy suppliers are. Yet to the customer, they can look the same. It is essential that all those involved in selling energy to small businesses have to abide by Ofgem’s new rules around fairness and transparency.
“There is always more to be done but these standards will help to build much needed trust in the market and give small businesses more confidence.”