Microbusinesses are increasingly working with brokers to bring down their energy bills. The lower costs for microbusiness energy are then passed onto microbusiness customers.

It can be a little daunting to sign up with a brokerage partner, especially given the news of unscrupulous energy brokers, hidden broker commission, inflated commission fees, and pressure into signing a new energy supply.

However, if you are a microbusiness, you can rest easy at night knowing that you have someone fighting in your corner. Keep reading to find out the key information and gain transparency on the state of the market.

What are Energy brokers?

Energy brokers are intermediaries who help businesses and organizations find and secure the best energy contracts and rates for their energy needs. They act as a liaison between energy suppliers and customers, helping to negotiate and secure energy contracts that are customized to meet the specific needs of each client. Energy brokers can also provide market analysis, energy usage assessments, and ongoing support and management of energy contracts. The goal of an energy broker is to help businesses and organizations reduce their energy costs, improve their energy efficiency, and secure reliable and sustainable energy supplies. By working with multiple energy suppliers, energy brokers can provide a range of options and help customers find the best deals and rates for their energy needs.

What is Ofgem and why do we need it?

Ofgem (Office of Gas and Electricity Markets) is the regulatory body responsible for overseeing the gas and electricity markets in the United Kingdom. It is an independent organization that was established to protect the interests of consumers and promote competition in the energy market.

Ofgem’s main responsibilities include:

Regulating the prices and profits of energy companies to ensure that they are fair and reasonable for consumers.
Monitoring the behavior of energy companies to ensure that they are operating in a fair and transparent manner.
Encouraging competition in the energy market by ensuring that new and innovative companies can enter the market and compete with established companies.
Providing information and guidance to consumers to help them make informed decisions about their energy use and find the best energy deals for their needs.
Protecting vulnerable consumers, such as those on low incomes, by ensuring that they have access to affordable energy supplies.

Ofgem is essential because it helps to ensure that energy markets in the UK are fair, transparent, and competitive, and that consumers are protected from unethical practices by energy companies. It helps to promote competition, which can drive down prices and improve the quality of services for consumers. By providing information and guidance, Ofgem also helps consumers make informed decisions about their energy use and find the best deals for their needs.

What powers and responsibilities does Ofgem have?

Ofgem (Office of Gas and Electricity Markets) has the following powers and responsibilities:

Regulating prices: Ofgem has the power to regulate the prices and profits of energy companies to ensure that they are fair and reasonable for consumers.
Monitoring behavior: Ofgem monitors the behavior of energy companies to ensure that they are operating in a fair, transparent, and ethical manner.
Encouraging competition: Ofgem promotes competition in the energy market by ensuring that new and innovative companies can enter the market and compete with established companies.
Licensing: Ofgem issues and revokes licenses for energy companies, and sets the conditions that companies must meet to operate in the UK energy market.
Protecting consumers: Ofgem works to protect the interests of consumers by ensuring that they have access to reliable and affordable energy supplies, and by promoting energy efficiency and reducing carbon emissions.
Resolving disputes: Ofgem has the power to resolve disputes between energy companies and consumers, and to enforce compliance with regulations and codes of conduct.
Providing information: Ofgem provides information and guidance to consumers to help them make informed decisions about their energy use and find the best energy deals for their needs.
Setting standards: Ofgem sets standards for energy companies to follow, such as quality of service standards, technical standards, and customer service standards.
Investigating complaints: Ofgem investigates complaints made by consumers about energy companies, and takes appropriate action to resolve the complaints.

By carrying out these responsibilities, Ofgem helps to ensure that the energy market in the UK is fair, transparent, and competitive, and that consumers are protected from unethical practices by energy companies.

Does Ofgem set the price of energy?

No, Ofgem does not set the price of energy. Instead, it regulates the prices and profits of energy companies to ensure that they are fair and reasonable for consumers. Energy companies determine their own prices based on a variety of factors, including the cost of wholesale energy, the cost of transportation and distribution, and the cost of meeting government policies and obligations.

Ofgem has the power to regulate prices by setting price controls or price caps, such as the price cap for standard variable tariffs, which is designed to protect consumers from excessive energy prices. The regulator can also impose fines or penalties on energy companies that breach its rules or regulations.

However, Ofgem does not have the power to set the price of energy itself. Instead, it works to promote competition in the energy market, which can drive down prices and improve the quality of services for consumers. By providing information and guidance, Ofgem also helps consumers make informed decisions about their energy use and find the best deals for their needs.

How does Ofgem deal with business energy?

Ofgem has a similar role in regulating the business energy market as it does in regulating the domestic energy market. The regulator’s responsibilities include:

Regulating prices: Ofgem has the power to regulate the prices and profits of business energy suppliers to ensure that they are fair and reasonable.
Promoting competition: Ofgem promotes competition in the business energy market by ensuring that new and innovative suppliers can enter the market and compete with established suppliers.
Licensing: Ofgem issues and revokes licenses for business energy suppliers and sets the conditions that suppliers must meet to operate in the UK energy market.
Protecting consumers: Ofgem works to protect the interests of business energy consumers by ensuring that they have access to reliable and affordable energy supplies.
Resolving disputes: Ofgem has the power to resolve disputes between business energy suppliers and consumers and to enforce compliance with regulations and codes of conduct.
Providing information: Ofgem provides information and guidance to business energy consumers to help them make informed decisions about their energy use and find the best energy deals for their needs.
Setting standards: Ofgem sets standards for business energy suppliers to follow, such as quality of service standards, technical standards, and customer service standards.
Investigating complaints: Ofgem investigates complaints made by business energy consumers about suppliers and takes appropriate action to resolve the complaints.

Overall, Ofgem plays an important role in ensuring that the business energy market in the UK is fair, transparent, and competitive, and that business energy consumers are protected from unethical practices by suppliers.

Which companies do Ofgem regulate?

Ofgem regulates energy companies that operate in the UK. This includes:

Electricity and gas suppliers: Ofgem regulates the prices and profits of electricity and gas suppliers to ensure that they are fair and reasonable for consumers.
Distribution network operators (DNOs): Ofgem regulates the prices and profits of DNOs, which are responsible for the distribution of electricity and gas to homes and businesses.
Transmission network operators (TNOs): Ofgem regulates the prices and profits of TNOs, which are responsible for transmitting electricity and gas over long distances through high-voltage power lines and pipelines.
Storage operators: Ofgem regulates the prices and profits of energy storage operators, who provide energy storage services to suppliers and consumers.
Suppliers of green energy: Ofgem regulates the prices and profits of suppliers of green energy, such as wind and solar energy, to ensure that they are fair and reasonable for consumers.

In addition to these energy companies, Ofgem also regulates some energy intermediaries, such as energy brokers, to ensure that they are providing a fair and transparent service to consumers.

Ofgem’s role is to ensure that energy companies are operating in a fair, transparent, and competitive market, and to protect the interests of energy consumers by ensuring that they have access to reliable and affordable energy supplies.

How do I complain about an energy broker?

If you have a complaint about an energy broker, you can follow these steps:

Contact the broker directly: Start by contacting the energy broker directly and explaining your issue. The broker may be able to resolve your issue immediately.
Lodge a complaint with the broker’s professional body: If you are not satisfied with the response from the broker, you can contact the professional body that the broker is a member of, such as the Energy Brokers Association (EBA).
Lodge a complaint with the Ombudsman: If your complaint is not resolved to your satisfaction, you can contact the Energy Ombudsman. The Energy Ombudsman is an independent body that resolves disputes between energy customers and suppliers.
Take legal action: If you are still not satisfied with the response to your complaint, you can consider taking legal action. This should be a last resort and should only be considered if you have exhausted all other avenues for resolving your complaint.

When making a complaint, it is important to provide as much detail as possible about the issue, including any relevant dates, times, and names of individuals involved. This will help the broker or Ombudsman to understand your issue and provide a prompt resolution.