Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how OFGEM monitors the adequacy of the energy market for small businesses; and what enforcement action has been taken in the last three years against suppliers found to be overcharging small business customers.
Licence conditions and compliance and enforcement matters, for both domestic and non-domestic customers, are a matter for Ofgem as the sector regulator.
The Government wants to provide businesses with better protection from being locked into unfair and expensive energy contracts, and more redress when they have a complaint. That’s why the Government has decided to regulate Third-Party Intermediaries (TPIs), such as energy brokers. This will improve consumer outcomes and enhance consumer protections for non-domestic consumers, particularly charities and small businesses. Regulation will be introduced once parliamentary time allows.
Since December 2024, Small and Medium Enterprises (SMEs) with fewer than 50 employees have been able to access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards. We consulted in late 2025 on measures to strengthen the Ombudsman’s tools for ensuring suppliers implement decisions in a timely manner.