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P UTILITIF
Page 48
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New regulations for energy suppliers
OFGEM HAS ISSUED new rules for energy suppliers to small businesses, which it says have been "woefully served".
Operators about to renew contracts should check the new ones carefully.
According to the Forum for Private Business, the new rules, which cover Firms employing fewer than 10 people or with a turnover less than €2m (J.:1.8m) stipulate: • Greater protection for small businesses that make up the majority of commercial consumers.
• Limiting the automatic rollover of fixed-term contracts, which has resulted in businesses being locked, without being aware of it, into unfavourable long-term contracts • Suppliers must include vital information on bills and produce annual statements in order to help customers compare tariffs.
• Prohibiting unjustified price differences between tariffs and payment types.
• Tougher rules governing marketing practices to prevent customers from being switched to higher-priced deals.
The rules come into force on 18 January 2010 and will apply only to new contracts.
Ofgem's recent review into the energy market suggests larger firms tend to have procurement specialists and can refer problems to the Energy Intensive Users Group, available to trade associations and large energy customers. But there is a gap in the protection available for medium-size businesses.