Families and small businesses will benefit from new protections in the energy market, as the government introduces stronger consumer rights and tighter regulation of energy brokers
The new protections led by the Department for Energy Security and Net Zero will make it quicker and easier for people to get redress when things go wrong, while stamping out exploitation in the broker industry.
Faster redress and compensation
The Energy Ombudsman will be given expanded powers to help customers resolve disputes with their energy suppliers more efficiently. At the moment, customers must wait eight weeks before escalating a complaint to the Ombudsman, but this will be cut to four weeks. The time the Energy Ombudsman takes to review cases will also fall from an average of six weeks to four, allowing customers to receive compensation more swiftly.
Suppliers that fail to implement the Energy Ombudsman’s rulings promptly will be forced to pay compensation, ending the widespread delays that have led to nearly one in ten decisions being enforced late or not at all. These measures are designed to ensure consumers are treated fairly and that suppliers take their responsibilities seriously.
Taking a stance on rogue energy brokers
Another key change targets the largely unregulated market of energy brokers and price comparison sites, known as third-party intermediaries. For years, some brokers have used aggressive sales tactics to lock small businesses into expensive energy contracts in exchange for high commission fees.
Under the new plans, Ofgem will take on responsibility for regulating brokers and intermediaries, ensuring that customers receive transparent, fair deals. These rules will make it clear that brokers must act in their clients’ best interests, ending the “wild west” of exploitative practices that have left many small firms out of pocket.
Energy Secretary Ed Miliband said:
“For too long, parts of the energy market have been letting consumers down and not paying up when mistakes are made.”
“Our reforms will put this right – making it faster and easier for families and small businesses alike to benefit from money back when things go wrong.
“We will also end the wild west of ‘cowboy’ brokers charging sky-high fees for contracts handed out to companies, while also providing better protections when installing a smart meter.”
Stronger safeguards for innovative meter installations
The government also plans to standardise contracts and improve protections for businesses and public sector organisations when installing smart meters. This move could deliver up to £200 million in energy savings through greater efficiency and more precise contract terms.
Energy suppliers will face stricter obligations to improve every stage of the innovative meter process, including faster appointment times and quicker repairs. If a meter stops working in intelligent mode and isn’t fixed within 90 days, customers will automatically receive compensation.
Small businesses are expected to benefit the most from these changes, as they are often the most vulnerable to misleading sales tactics and unclear energy pricing. With small and medium-sized enterprises accounting for 60% of private-sector jobs, improving their protection is seen as vital to supporting the broader economy.
