Ombudsman launches energy brokers dispute scheme

The dispute resolution scheme for energy brokers has officially been launched following Ofgem’s strategic review into the microbusiness energy market.

A microbusiness is defined as a firm which consumes no more than 293,000kWh of gas or 100,000kWh of electricity each year or has fewer than ten employees and an annual turnover not exceeding €2 million.

Ofgem’s review was announced in January 2019 following concerns the energy market was not working as it should for some microbusinesses. It explored how to improve the experiences of these customers, including providing them with better and fairer deals.

As a result of the review the regulator stipulated that energy suppliers can only work with brokers that are signed up to a qualifying dispute resolution scheme.

During the review process, the Energy Ombudsman worked with Ofgem to build the scheme and to gain a better understanding of the types of disputes that commonly occur between brokers and microbusinesses.

Energy suppliers and stakeholders were also engaged to fully understand the relationships, services and contracts currently being sold to microbusinesses.

A spokesperson for the Energy Ombudsman confirmed to Utility Week that there are currently 1,311 active brokers signed up to the scheme.

Additionally Ed Dodman, director of the Energy Ombudsman, said: “After months of hard work, we’re pleased to announce that the scheme is live and we’re now helping to resolve disputes between energy suppliers, brokers, and their consumers. We see this as a key means of building trust in the market.

“If any energy brokers haven’t yet enrolled on to the scheme, I’d strongly encourage them to do so as soon as possible so they can continue to sell energy contracts to microbusinesses.”