Businesses that are in dispute with their energy supplier will now get double the payout, rising from £10k to £20k.
The Energy Ombudsman has announced an increase in the maximum award for non-domestic disputes with energy suppliers will double from 19 December 2024. This change coincides with Energy Ombudsman’s remit being extended to cover small businesses with fewer than 50 employees.
This decision follows a review of invited stakeholder views, in which respondents highlighted the need to recognise the higher energy usage and turnover of small businesses.
To ensure the award remains appropriate, the Energy Ombudsman has committed to reviewing it after six months.
Ed Dodman, Business Unit Director at Energy Ombudsman, explained: “Our increase represents a crucial step in ensuring that small businesses have access to the support they need to resolve energy disputes effectively. By extending our remit to cover 99% of businesses in the UK and raising the maximum award, we are addressing the real challenges faced by businesses with higher energy consumption.
“Through close collaboration with the Government and Ofgem, we’ve ensured our services are fair and aligned with the needs of businesses. The new award limit is a reflection of our ongoing commitment to delivering impartial and impactful resolutions for those we serve.”
Explaining the decision on its website the Ombudsman rejected the idea the increase in the award would only apply to small business disputes.
“It would be wrong for us to be in a position where we were unable to resolve a dispute from a microbusiness valued at £15,000 but we were in a position to resolve a dispute from a small business with the same value. For this reason, we believe it reasonable to increase the limit for all non-domestic disputes.”
Energy Ombudsman’s extended remit will include an additional 200,000 businesses. From next month, [99]% of all businesses in the UK will be able to access Energy Ombudsman services and receive free support to resolve disputes with their energy supplier.
The maximum award for disputes with brokers will remain at £10,000.
