Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Government and Ofgem act to rein in unscrupulous energy brokers to ‘empower’ UK SMEs

by April 5, 2024
April 5, 2024
Government and Ofgem act to rein in unscrupulous energy brokers to ‘empower’ UK SMEs

Small businesses, including care homes, charities, and faith groups, are set to benefit from enhanced protections against unscrupulous energy brokers who exploit opaque deals to pocket hidden commission fees.

These measures represent a significant stride by the government and industry regulator to rein in unregulated energy brokers amid mounting concerns over predatory sales practices and undisclosed commissions, which have burdened small businesses with inflated costs.

In a landmark move, companies with fewer than 50 employees will gain access to free redress and support from the energy ombudsman, facilitating the resolution of disputes with suppliers over exploitative energy deals without resorting to costly legal proceedings.

Amanda Solloway, Minister for Affordability and Skills, hailed the reforms as an “empowerment” of small businesses, ensuring that “rip-off energy brokers have no place in our market.”

The energy regulator, Ofgem, will extend its regulatory purview to encompass businesses with more than 10 employees, enabling it to take action against suppliers that fail to treat small business customers equitably, effective from this summer.

By the year’s end, Ofgem will compel all suppliers to disclose any fees and commissions paid to third-party brokers in their energy agreements. Additionally, suppliers will be mandated to engage exclusively with accredited brokers participating in a customer redress scheme.

Despite nearly a third of companies with business energy contracts employing brokers to secure deals, these intermediaries have largely operated without oversight, unlike their counterparts in mortgage or insurance sectors.

Tim Jarvis, Ofgem’s Director General for Markets, emphasised that many businesses have faced challenges with energy suppliers and encountered difficulties securing suitable contracts. “These new regulations will help ensure businesses receive the service they deserve,” Jarvis affirmed.

Last year, it emerged that business associations representing over a million small enterprises had urged Ofgem to crack down on energy brokers targeting the sector, which sustains nearly 13 million jobs nationwide.

Legal experts at Harcus Parker and Leigh Day, firms spearheading class-action lawsuits against energy suppliers, estimate that small businesses could be entitled to claim back up to £2 billion in undisclosed commissions.

Jarvis pledged, “We will engage with businesses of all sizes as these regulations are implemented throughout the year to ensure compliance by suppliers.”

Read more:
Government and Ofgem act to rein in unscrupulous energy brokers to ‘empower’ UK SMEs

0
FacebookTwitterGoogle +Pinterest
previous post
Google Mulls Charging for Premium AI-Powered Search Results
next post
London restaurant chain faces criticism as it replaces card tips with ‘Brand Charge’ amid pending law changes

You may also like

Surge in voluntary liquidations sparks abuse of process...

September 27, 2024

Trump issues fresh trade threat: buy american oil...

December 20, 2024

Rachel Reeves won’t rule out pension fund mandates...

May 14, 2025

Rayner sets ambitious housing targets in planning overhaul

July 31, 2024

The Co-operative Bank launches £10,000 prize draw for...

April 30, 2025

We must make Britain the best place to...

June 12, 2025

Shein’s UK sales hit £2bn as fast-fashion giant...

August 15, 2025

$88m methane-tracking satellite lost in space, dealing major...

July 4, 2025

BCC launches Business Council with Heathrow, Drax, IHG...

June 5, 2023

Two-thirds of small businesses want to invest in...

May 10, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump threatens lawsuit over century-old Senate tradition delaying his nominees

      August 25, 2025
    • Trump threatens lawsuit over ‘blue slips’ as top GOP senator bucks demand to bend Senate rules for nominees

      August 25, 2025
    • Trump touts Kim Jong Un relationship amid South Korea summit

      August 25, 2025
    • The Price of Freedom: The True Cost of Pretrial Detention

      August 25, 2025
    • ‘Bold’ general who led US’ ‘Midnight Hammer’ strikes on Iran ends Middle East reign

      August 25, 2025
    • Democrats opposed John Bolton for years — until they sought him as an ally against Trump

      August 25, 2025

    Categories

    • Business (8,876)
    • Investing (2,237)
    • Politics (16,484)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved