New energy system 'better for pubs'

By John Harrington

- Last updated on GMT

Related tags New regime Government Business Energywatch

MA campaign against rogues has paid off
MA campaign against rogues has paid off
Government insists new regime for handling complaints, in place of the now defunct energywatch, will offer a better system but concerns still exist that the new Consumer Direct only offers a limited service to businesses.

The Government says the new regime for handling energy complaints will offer a "much better system" of protection for small businesses.

This is despite concerns from the Federation of Small Businesses that Consumer Focus (CF) — which takes on the role of Energywatch, which folded this week — "only offers a limited service to small firms".

The new regime, which starts this week, will see most pubs having access to an independent ombudsman to resolve disputes with suppliers. Energy firms are legally bound to take part.

The Department for Business, Enterprise & Regulatory Reform (Berr) has revealed some of CF's responsibilities.

These include investigating and acting on complaints from vulnerable small firms, as well as providing information to consumers, lobbying on behalf of energy users and publicising how suppliers have acted on complaints.

One source in the energy sector expressed concern that unlike Energywatch, CF won't have a dedicated section for business users.

There are also fears that fewer businesses will get help in complaints handling from CF, which will focus on those facing disconnection.

But a Berr spokesman said: "Small businesses will get a much better system from this." He stressed that energy suppliers will have to abide by new tougher standards, with more onus on them to resolve complaints.

He said taking a complaint to the ombudsman would not be a difficult process.

"We think it's going to benefit small businesses. The proof of the pudding will be in the eating and we will see how it works."

BII chief executive John McNamara said: "This is positive news but we'll wait and see how it works."

MA pressure pays off with new protection

The outcome represents an apparent victory for the MA's Action on Energy Rogues campaign.

The MA, Energywatch and six trade bodies have twice written to the Government and energy regulator Ofgem asking for pubs to be protected in the new regime. This led to a change in policy for the redress scheme.

The Government abandoned plans to limit access only to firms that use less than £5,000-worth of gas or electricity per year (expressed as an equivalent usage measure). It's now also open to pubs with the equivalent of 10 or fewer full-time staff or turnover under E2m (£1.6m).

The second letter called for small firms to be included in the first-tier services from CF. It looks like it has — although concerns remain and the system has yet to be tested.

Contact CF at www.consumerdirect.gov.uk​ and the ombudsman at www.energy-ombudsman.org.uk​.

Let us know your experience of the new regime — call 01293 610481 or email wbua.uneevatgba@jvyyvnz-errq.pb.hx .

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