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This document summaries the responses received to the Gas and Electricity Regulated Providers (Redress Scheme) Order 2008 (SI 2008/2268) (“the Order”) consultation which closed on 14 February 2014.
The Order currently enables domestic, and micro business customers that typically spend up to £5,000 on gas or electricity per year, to have access to a redress scheme if they have not been able to resolve a consumer complaint with their energy provider directly. The consultation sought views on whether the upper limit of annual energy consumption in the micro business definition in the Order should be changed by increasing it from:
- a consumption of no more than 55,000 kWh to no more than 100,000 k Wh of electricity per year, or,
- a consumption of no more than 200,000 kWh to no more than 293,000 k Wh of gas per year.
The changes doubles the current upper limit of £5,000 per fuel, benefiting up to 150,000 businesses.
The document sets out the Government’s plan to introduce the changes to micro business definition by amending the Order, which will be subject to Parliamentary process.
The One-in, two-out (OITO) status and Equivalent Annual Net Cost to Business (EANCB) figures are subject to RPC validation.
The Gas and Electricity Regulated Providers (Redress Scheme) Order 2008 requires energy providers who provide a supply to domestic and micro-business customers to join a redress scheme which has been approved by the Gas and Electricity Markets Authority (GEMA). Energy providers include gas and electricity suppliers, gas transmission and electricity distribution companies. This requirement enables domestic and micro business customers to have access to a redress scheme if they have not been able to resolve a consumer complaint with their energy provider directly.
The Order describes a micro business as one that:
- does not consume more than 55,000 kWh of electricity per year,
- does not consume more than 200,000 kWh of gas per year, or
- employs fewer than 10 employees (or their full time equivalent) and has an annual turnover or balance sheet total not exceeding €2 million.
This allows for micro businesses that typically spend £5,000 on gas or electricity, to have access to the same form of redress arrangements as domestic customers. We are proposing to improve the Order by expanding the consumption levels on the amount of electricity or gas used per year, so that businesses that typically spend up to £10,000 (excluding VAT and other charges) on these fuels per year have the same form of redress arrangements as existing micro business customers.
This consultation seeks responses by 14 February 2014.