Micro Business

Are you a micro business?

See the definition and standards set by energy regulator Ofgem to help protect micro businesses.

Ofgem has taken the decision to implement the majority of their Micro Business Strategic Review from 1st October 2022 with one change being effective from 1st December 2022.

As a micro business you have particular protections under the energy supply licence regime, which provides extra peace of mind.

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Ofgem consider a customer a micro business if they satisfy any one of the following criteria:

Are you a micro business?

  • Employs fewer than 10 employees (or full time equivalent) and has an annual turnover or balance sheet no greater than €2 million
  • Consumes up to 293,000 kWh of gas per year
  • Consumes up to 100,000 kWh of electricity per year

The key changes Ofgem are introducing are as follows:

  • No requirement for micro business consumers to submit contract termination notice – effective from 1st October 2022.
  • Ofgem require suppliers to disclose and publish within their Principal Terms for micro businesses (visible and provided pre-contract), the total pounds sterling commission to be paid to a third party over the lifetime of the contract (actual or an estimate where actual is not known) – effective from 1st October 2022.
  • The Principal Terms must be explicitly provided to the micro business customer.
  • For verbal contracts, the Principal Terms must be clearly explained to the micro business consumer on the call. Ofgem do not consider “signposting a consumer during a verbal sale (e.g. via an email or text message sent during the call) to a set of Principal Terms as sufficient”.
  • Ofgem also require suppliers to send micro business customers a further copy of the Principal Terms post-contract acceptance within a reasonable timeframe.
  • At any time on the request of the micro business consumer, Ofgem require suppliers to provide accurate information of commission paid and an updated estimate of sums to be paid in respect of the lifetime of the contract.
  • Ofgem require suppliers to only work with energy consultants signed up to a Qualifying Dispute Settlement Scheme from 1st December 2022.

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