Good news from Ofgem as they’ve released new rulings to ensure that energy contract renewals will finally get easier for microbusinesses. See the full factsheet here.
Long have we been baffled by Ofgem’s confusing definitions of microbusinesses and the different rules they abide by. Just to clarify, your company is a micro business if it:
- employs fewer than ten employees (or their full time equivalent) and has an annual turnover or balance sheet no greater than €2 million, or
- uses no more than 100,000 kWh of electricity per year, or
- uses no more than 293,000 kWh of gas per year.
So now that’s cleared up, we’ll tell you the new rules. It’s safe to say that the renewal process has definitely been made a bit more coherent and user friendly.
Micro-businesses are now required to give termination notice only 30 days in advance now rather than the previous lengthy 90 days. Plus suppliers must acknowledge this notice within five working days. A huge improvement.
Suppliers will now be bound to include the current prices, new prices and annual consumption on renewal letters for fixed-term contracts to make comparisons easier. This should encourage our smaller businesses to switch suppliers and lower their bills.
At Business Juice, we encourage businesses of all shapes and sizes to compare energy suppliers and cut their overheads. To get an idea of how much you could save, call 0800 051 5770.