Now Small Business Get Free Energy Ombudsman’s Dispute Resolution Service

The UK’s regulatory body Energy Ombudsman is now offering a free dispute resolution service for businesses with up to 50 employees. Before that, this was only free for businesses that had up to 10 employees. It is designed to resolve small businesses' energy disputes with utility providers and brokers without the hassle of paying fees and going to court.

This amendment was first introduced in April 2024 by the Energy Security and Net Zero (DESNZ) Department to resolve the billing issues, hidden fees, and overselling of energy between utility providers and small businesses as part of a broader initiative by the government and Ofgem. These tweaks in regulations will ensure businesses can access free support to resolve disputes and assist the government in achieving net zero by 2050.

Managing Director and Chief Ombudsman for Energy Ed Dodman said, “One of our key priorities is ensuring all consumers have full access to our service. We also believe businesses should have the same access as domestic consumers, therefore the extension of support for small businesses is very much welcomed.”

This means it can fill the access protection gap for small businesses and more companies can now utilise free support from Ofgem. Minister for Energy Consumers, Miatta Fahnbulleh also stated, “Small businesses are at the heart of our mission to deliver growth, which is why we are making sure that disputes with energy suppliers do not unfairly hold them back. By extending the Energy Ombudsman’s remit, 99% of UK businesses will now have an easy route to resolve issues with their supplier, if they arise, without disruption or costly court cases.”

This expanded agreement marks a significant improvement in consumer protections for small organizations against unfair practices. To support its broader scope, the Energy Ombudsman has announced an increase in the maximum award for non-domestic disputes with energy suppliers, raising it from £10,000 to £20,000, effective from December 19, 2024.

These changes are designed to enhance trust and transparency within the energy sector while providing businesses with a simpler and free way to resolve complaints and manage their energy bills.

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