Why businesses need a regulated energy market

Thousands of domestic customers have secured refunds and compensation from energy suppliers after an Ofgem compliance review found they had been overcharged on their energy bills.

Victoria Myers of Energy Solicitors Limited (ESL) is calling for the same level of regulatory scrutiny and support for businesses when it comes to overcharged or mis-sold energy contracts. 

The Ofgem investigation revealed that ten energy suppliers charged £7 million over the energy price cap to more than 34,000 domestic customers – an error attributed to failures in properly applying the price cap.

In a statement by Ofgem, Charlotte Friel - director of retail pricing and systems highlights that the price cap is set for domestic energy consumers so “customers don't pay a higher amount for their energy than they should.” She further highlighted the outcome “serves as a reminder to all energy suppliers that they must implement the price cap properly and do their due diligence.” 

While the crackdown by Ofgem is welcomed and domestic customers are safeguarded by regulatory frameworks, UK businesses operate in an unregulated energy market. This opens the doors for unscrupulous energy brokers to mislead unknowing businesses with inflated energy prices and hidden commissions in energy contracts.

Victoria Myers of ESL said: “The unregulated business energy market has enabled rogue brokers to take advantage of thousands of companies across the UK. Holding these brokers accountable for their unfair and unethical practices should be a priority. ESL’s team of litigation experts are here to fight for businesses and help them reclaim money that’s rightfully theirs.”