In an effort to assist and, where possible, protect small businesses and vunerable consumers paying increasing energy costs, Ofgem have imposed a set of guidelines for energy suppliers. The Ofgem press release is attached below but a brief summary of these changes are as follows:

1. New requirements on written estimates following visits from face-to-face salespeople will come into force on 18 January 2010. Essentially, this would put an end to Contracts being signed that don’t match what was ‘promised’.

2. Doubling the threshold of debt a customer can carry and still switch supplier to £200 will come into force on 18 January 2010. This reduces the practical obstacle that has delayed many clients in the transfer process.

3. Further clarity in printed billing information [via PDF or post] from suppliers and the production of annual statements to customers if these are not already in existance from July 2010. This provides improved billing management.

4. Requirement for the six big energy companies to show more openess regarding their margins from the business community in these difficult financial times. This should enable businesses to see to what extent they are being exploited within the market.

Ofgem Assistance for SME and Consumers Press Release PDF

In these ‘Straightened Times’ the newly observed behaviour of Energy Suppliers is creating concern in many circles. Whilst there patently is an economic downturn, some behaviour can best be described as over enthusiastic. In most circumstances now all Energy Contract Renewals or Transfers are accompanied by a Credit Check on the business concerned, even when staying with your current supplier.

This new found paranoia has resulted in an exuberant application of the word ‘NO!’ . Whilst not wishing to be disparaging regarding the merits of such a process, businesses are failing, it is easy for the third party credit checking organisations to err ‘statistically on the side of caution’ and say no. continue

Following a recent investigation, Ofgem has released a new set of guidelines for implementation this autumn designed to protect small businesses by increasing transparency in contracts and agreements with energy brokers and advisors. This will reduce many of the problems faced by small businesses in negotiating deals and clarity on knowing what rights they have as a business energy consumer therefore reducing the number of complaints and hours spent resolving disputes. These changes include:
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Make sure you read those Terms & Conditions or at least make sure that whoever is arranging your energy contracts ascertains exactly what is being signed. Whilst there are significant government backed efforts to support the pressures on Businesses at the moment, not everyone is being quite so supportive. Apparently the notion of ‘Limited Company’ status doesn’t wash with business energy supplier Scottish Power.

the director who signs the Agreement on your behalf…shall irrevocably and unconditionally be jointly and severally liable for any and all payments…’ so make sure the business pays those bills!

Even if the business is paying the bills, there are potentially draconian additional requirements.

at our (Scottish Power) sole discretion we may also require the said director within 7 days of request, to provide us with a personal guarantee…for an amount no greater than an amount equal to the previous quarter’s usage.

Let’s hope your energy costs aren’t large.