NCVO has welcomed an announcement from Ofgem that it will take action on hidden fees charged by energy brokers.
The umbrella body’s chief executive, Sarah Vibert, co-signed a letter to the energy regulator last month, urging it to “take urgent action on hidden energy broker charges affecting some of the UK’s most vulnerable people and the sectors worst hit by cost-of-living crisis”.
Authored by energy consultancy Box Power, the letter called on Ofgem to require pre-contract energy broker costs to be transparent for all organisations, not just micro-businesses as at present.
Following the letter, Ofgem announced it would consult on extending micro business protections to all organisations “so energy bills spell out what is being paid to energy brokers plus allowing businesses to resolve disputes through a redress scheme”.
It said it would ask the government to consider further protections in areas it does not have the power to regulate, like energy brokers.
Ofgem also said it would ask for businesses to be given access to the energy ombudsman.
‘Tackling hidden charges by energy brokers is key’
NCVO welcomed Ofgem’s announcement.
“At a time when every penny counts for charities, it is important that they have the ability to effectively manage their finances,” Sam Mercadante, NCVO’s policy and insight manager, told Civil Society.
“Tackling hidden charges by energy brokers is key to helping them focus on utilising their funding where it matters most - delivering exceptional services.
“We’re pleased to see that, following the open letter, Ofgem has announced action to help improve transparency for non-domestic customers and welcome their steps to help further improve clarity and guidance.”
Care England: ‘Needs of the care sector have been recognised’
Martin Green, chief executive of Care England, also signed the letter to Ofgem and said the regulator’s announcement was a “welcome step forward”.
“Care England has been exercised in its calls for business protection measures and is pleased that the needs of the care sector have been recognised, only this week seeing a broker charge £68,126 for an energy renewal which our own professional energy broker reduced to £12,606,” he said in a statement.
“Consulting on extending micro business protections to all businesses is therefore essential to draw a halt to rogue broker behaviour and we welcome the increased protections Ofgem has called on government to consider, including the power to regulate brokers and support vulnerable consumers on non-domestic contracts in care homes.”
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