Energy regulator Ofgem has outlined its expectations for non-domestic suppliers to support businesses throughout the winter period.
With inflated energy bills expected to return this winter, Ofgem has urged non-domestic suppliers to ensure support is provided to businesses to allow “business as usual”. In fact, the Q1 Default Tariff Cap predictions forecast that energy bills will be over £600 higher than the 2022 winter cap.
In light of this, Ofgem reiterated that “we must be prepared for all outcomes”. In doing so, the energy regulator has called on suppliers to ensure customers receive “good service and fair treatment” as they engage in the energy market.
The statement comes following an investigation by Ofgem into how suppliers are pricing their deemed contract rates with the final Guidance on Deemed Contract rules having been released as well.
Under this, suppliers are able to review their current processes and satisfy themselves, so they comply with the licence condition as soon as possible. However, Ofgem did state that the rules require suppliers to ensure their deemed contract terms are not onerous and, if any are found breaching the rules, the organisation “would not hesitate to act”.
Ofgem recently announced former oil executive, Mark McAllister, as the new Ofgem chair as of 6 November.
McAllister previously founded the oil and gas companies Acorn Oil & Gas and Fairfield Energy in 2001 and 2005 respectively. At present McAllister is chair for the community charity Oasis UK, the Office for Nuclear Regulation, and the Public Chairs’ Forum (PCF) which works to improve the efficiency and effectiveness of public services in the UK.
McAllister replaced Martin Cave who had been Ofgem chair since 2018.