Supplier Rules Governing Micro Businesses

From April 2015 Ofgem changed energy supplier's licensing requirements to provide greater protection for small businesses.

The new rules provide that micro-businesses be given greater flexibility when their energy contract is due to expire. The maximum notice period was cut from 90 to 30 days. The supplier must also send a renewal letter 60 days prior to expiry of the contract. Should the customer ( or their broker ) submit termination notice, the supplier must acknowledge receipt in writing ( or e- mail) within five days.

Renewal notices must also contain information about annual consumption and the customers current pricing.

The changes were made since a large number of the UK's 1.6m micro businesses were suffering severe price increases upon expiry of their energy contracts. Sometimes contracts are 'rolled over', ie, re- contracted at excessive rates or customers are billed at deemed contract rates.

A qualifying micro business would satisfy one of the following conditions -

1. Consume less than 293,000 Kwh of gas annually.

2. Consume less than 100,000 Kwh of electricity annually.

3. Employ less than 10 people and have an annual turnover or ballance sheet   of less than 2m.

Part of the brokering service includes submission of temination notices, for which Amcub will need a Letter of Authority.