Explainer
Since 2024 Ofgem has extended much stronger protections to business energy customers. Here are the rules on broker fees, standards of conduct, complaints and the Energy Ombudsman, deemed rates and compensation, and what they mean for suppliers and brokers.
By Christopher Fagan, Managing Partner, PEF Consulting Partners
In April 2024 Ofgem confirmed a package of protections for business customers following its review of the non domestic market. The changes came into force in stages through 2024.
| Change | Who it covers | From |
|---|---|---|
| Standards of conduct, treating customers fairly | All non domestic customers | 1 July 2024 |
| Broker fees shown in the principal terms of the contract | All business customers | Contracts signed from 1 October 2024 |
| Complaints handling standards and signposting to the Energy Ombudsman and Citizens Advice | Small businesses | 19 December 2024 |
| Suppliers may only use brokers that belong to a redress scheme | Small businesses | 19 December 2024 |
| Energy Ombudsman access, with the maximum non domestic award raised from £10,000 to £20,000 | Small businesses | 19 December 2024 |
For these rules, a small business has fewer than 50 employees and either turnover of £6.5 million or less or a balance sheet of £5 million or less, or uses no more than 200,000 kWh of electricity or 500,000 kWh of gas a year.
Deemed contract terms must not be unduly onerous. Ofgem’s guidance of November 2023 expects suppliers to set deemed rates by customer class and not to inflate them to push customers onto fixed contracts.
In October 2025 the government decided that energy brokers should be regulated, with Ofgem as the regulator. That needs legislation, and broker regulation was included in the Energy Independence Bill announced in May 2026.
Suppliers must pay automatic compensation when they miss guaranteed standards, such as completing a switch on time, avoiding erroneous transfers, keeping appointments, and issuing final bills and credit refunds. The payment rose from £30 to £40 for breaches from 2 January 2025, with a further £40 if it is not paid within ten working days. New smart meter standards from February 2026 also carry £40 payments, and the appointments standard covers microbusinesses.
Back billing protection also applies to microbusinesses; see Ofgem back billing rules.
Related reading: Ofgem compliance support, energy supplier licence compliance, the free Ofgem compliance readiness check, what Ofgem is and does.
Yes. Supply licences cover non domestic supply, and since 2024 Ofgem has extended standards of conduct to all business customers and added further protections for small businesses.
Yes. Since 19 December 2024 small businesses can take unresolved complaints to the Energy Ombudsman, which can award up to £20,000 for non domestic customers.
Suppliers must show broker fees in the principal terms of contracts signed from 1 October 2024, for all business customers.
Service standards that suppliers must meet, such as completing switches on time and keeping appointments, with automatic £40 compensation payments when they do not.
If your business customer processes were designed before 2024, they are probably not compliant with all of this. A short review will show where the gaps are.