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Am I a micro business?

Understanding the concept of micro business.

Question: How do I know if I’m a micro business?

James Constant:

The official line is that you can be defined as a micro business for just gas, just electricity, or for both.

The gas or electricity must be supplied on non-domestic premises and you must meet at least one of the following three criteria:

  • You don’t consume more than 55,000 kWh of electricity a year;
  • You don’t consume more than 200,000 kWh of gas a year;
  • You have fewer than ten employees (or their full-time equivalent);

and your annual turnover or annual balance sheet total must not exceed €2m.

But in reality who knows that?

It is a ridiculous perversity that to get a fair view of your business energy contract you have to prove you fit a notional and decidedly subjective and difficult to measure criteria. Do you really know your turnover in Euro?

But being able to prove you are a micro business customer is very beneficial as you are entitled to receive an additional set of rights from your business energy supplier:

  • You have to be sent your contract terms and conditions by your supplier;
  • You have to be sent a renewal letter by your supplier at least 60 days in advance of your contract end;
  • You have at least 30 days to contact your supplier to accept, negotiate or refuse your renewal offer.
  • You cannot be ‘rolled’ over for more than a 12 month contract

Yes it is true that in any other industry these ‘benefits’ would be standard and unthinking, so it’s shocking that they are seen as above and beyond service in the energy industry, but that is the way the market is, making your navigation of it critical to avoid an all too easy pitfall.

If you aren’t a micro business or can’t prove that you are, you have none of these rights unless your supplier explicitly offers them, which in the vast majority of instances they do not.

Our advice then is to not worry about whether you are a micro business or not. Demand your contract, demand your contract end date and demand the terms of your termination and do all of this at the point of first entering your contract.

To find out your supplier’s policies on micro business, non-micro business, roll over, termination, back billing and out of contract rates visit our dedicated supplier pages.


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