The Alternative Dispute Resolution scheme - what microbusinesses need to know

Over the last 18 months, energy regulator Ofgem, and the not-for-profit organisation the Energy Ombudsman Services, have come together to improve the experiences of microbusiness customers. In collaboration, they’ve created an Alternative Dispute Resolution (ADR) scheme for energy brokers to join. The new scheme launches on the 1^st December and here’s what you need to know…

The background

The Energy Ombudsman Services provides a free impartial service that resolves disputes between energy suppliers or brokers and their customers. So when Ofgem began a ‘Microbusiness Strategic Review’, the two organisations joined forces to better understand the types of disputes that commonly occur between brokers and microbusinesses, along with the challenges of operating in this market. As part of their work, they also engaged with energy suppliers and other stakeholders to get a deeper understanding of the relationships, services and contracts currently being sold to microbusinesses.

The result

With the review completed, Ofgem and the Energy Ombudsman Services used the insight to put in place an ADR scheme. Its role is to help brokers further improve their service and processes – and ultimately – the experience for microbusiness customers. However, a notable part of the new scheme is that brokers will need to sign up and energy suppliers will only be able to work with those that do.

Energy brokers were invited to register for the scheme between 26th April and 31st August to make sure applications are processed in time for its launch on 1^st December. Energy brokers who apply after this window will still be added to the register, but it may not be in time for launch. After the go live date, energy brokers must be on the register to continue selling energy contracts to our microbusiness customers, as well as those with another energy supplier.

What it means for microbusinesses?

The new scheme is a positive step for all parties involved, helping to instil confidence in the industry while maintaining high standards at a challenging time in a volatile market.

You can find more information about the new ADR scheme here.