Page 8 - Gi March 2019 - Flipbook

industry & Government news

OFGEM TO REVIEW SMALL

BUSINESS ENERGY MARKET

But it is not clear that commissions In the worst cases, businesses can
or ‘uplifts’ are always disclosed and find themselves paying thousands of
small businesses as a whole are pounds to exit contracts. Some end up
being overcharged. The Competition shutting down as a result.
& Markets Authority thinks they are Ofgem now has the opportunity to
overpaying by £500 million a year, with take action following an indication from
suppliers making four times the margin government last year that it may beef-
on small firms than they do on large up consumer protection.
customers. “Ofgem supports the government’s
Because brokers are not regulated, recent Consumer Green Paper proposal
DERMOT businesses currently have little to extend consumer law fining powers
NOLAN protection from bad actors. Many, to us so that domestic consumer
particularly those setting up shop protections are strengthened, and
OFGEM WILL launch a review of the or taking on new premises, may be additionally propose that this is
microbusiness energy market this year. bombarded by calls from brokers. More extended to non-domestic protections,”
The regulator will examine whether to than a fifth of small firms recalled said an Ofgem spokesperson.
put in place similar protections for the receiving at least 50 calls according to “As part of our consideration of more
UK’s smallest firms to those afforded to research carried out for Ofgem in 2017. fundamental reforms to the retail
households. Small firms may know very little market, we will carefully consider how
The review, should it lead to action, about the energy market. If an the scope and form of our regulation
will be welcomed by those that have unscrupulous sales agent tells them may need to change.
long called for oversight of third parties, they are “on emergency rates” or “This year, we will be conducting a
reports The Energyst. that “National Grid will shut off their strategic review of the microbusiness
Many suppliers and brokers can supply” they can be pressured to sign retail market to understand market
reduce energy bills – particularly for the up to expensive tariffs and locked into challenges and consumer experience.
roughly one in four small businesses on long-term contracts. The review will identify the case for
expensive rollover contracts. Brokers Firms can take complaints to the short and medium-term actions. We
can package up demand and get Ombudsman if they think they have expect to publish an opening statement
better deals for businesses, earning a been unfairly treated. But should they over the coming months and will invite
commission or adding a percentage per fail to uphold their complaint, they views and evidence from stakeholders
kilowatt consumed in return. have little recourse. to help inform our thinking.”

CALLS FOR REVIEW OF UK’S 2050 CLIMATE TARGET REJECTED BY COURT OF APPEALS

AN APPEAL to bring forward the compelling reason” to proceed with
UK’s current climate commitments legal measures.
to align with scientific research on Plan B’s case was aimed at Business,
the necessity to limit average global Energy and Industrial Strategy
warming to 1.5C has been rejected by Secretary Greg Clark, imploring him to
the Court of Appeals. raise the ambitions of the UK Climate
In December 2017, Plan B – a non- Change Act 2008. The Act sets a carbon
profit with an aim to support legal action emissions reduction of 80 per cent by
against key drivers of climate change – 2050 against a 1990 baseline.
filed a claim alongside 11 British citizens However, Plan B argues that the
to raise ambitions on long-term climate 2050 target is consistent with a
ambitions to align to the 1.5C target of global warming limit of 2C above
the Paris Agreement. pre-industrial levels, whereas the
After the High Court ruled in July UK government should be targeting
that there would not be a full hearing new commitments that reflect a 1.5C
on the case, Plan B turned to the ambition. The 2008 Act enables the
Court of Appeals, reports edie.net. Secretary of State to revise targets based
However, the decision sided with the on new scientific developments and
THE GROUP WANTS THE UK TO RAISE High Court, noting that there was “no international law.
ITS CLIMATE CHANGE AMBITIONS

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