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News

Ofgem Energy Code of Conduct

Ofgem, the body that regulates the energy industry, has further outlined its proposals for an Energy Code, which will bind everyone from the “Big Six” energy suppliers, through to brokers such as Utility Helpline. Early plans for this code had originally been criticised for being rather vague, but Ofgem has since consulted with the energy industry to firm up the code, which essentially aim to protect the end users of business energy from the cowboy operators who have begun to infiltrate the industry.  The details of the code were highlighted in a letter Ofgem has written to the business energy industry, which outlines how energy suppliers will only be allowed to work with brokers, if those brokers are signed up to this Energy Code. As you may have read in previous articles, Utility Helpline have themselves been concerned with the unscrupulous activity of many energy brokers, and therefore welcome this code, which may well remove some of the more unsavoury operators from the market. Our support is shared by many other businesses serving the industry, all of whom will be concerned with the long-term security and viability of business energy supply, equally determined that all operators abide by such guidelines.  From consumer groups through to energy brokers though to the Big Six, Ofgem cites “broad support” for its Energy Code.  All energy brokers will be compelled to join the code (again, compelling energy suppliers to work purely with registered brokers), as soon as the end of next year, which gives everyone a little more breathing room as the original date was to be this year.  The responsibility to confirm that the broker has signed to the code will be beholden on the energy supplier

Compliance with the code

Rather like the financial industry, the code will compel all brokers to be transparent about what suppliers they work with, what services they can offer, and the fees that they charge.  Having said that, the industry is still unclear as to what the penalties will be for not complying with the code, or working with brokers who haven’t signed up, or how their compliance might be ensured. Some energy businesses, quite understandably, have asked who will monitor the code, and enforce any breaches.  Ofgem have now been able to address these concerns.  It transpires that an industry-led, independent board will be established to oversee the Energy Code, including compliance and the day-to-day operation of the code of practice. There were no great surprises in this announcement as Ofgem has been consulting on this document for some time.  All that’s now left is to populate the board with experienced energy personnel and monitor how the new system beds in.  Although Ofgem has not gone as far as direct regulation of the energy market (which would, in any case, have been step too far), this new Energy Code is certainly a timely step in the right direction, in terms of the better management of the sector. If you're unsure whether a broker is approved under the code, you can check here.


Published by Utility Helpline on