Alternative Dispute Resolution (ADR) FAQs

FAQ's

21st June 2022

Alternative Dispute Resolution (ADR) FAQs

Some important changes are occurring in the energy sector that you need to be aware of. Alternative Dispute Resolution (ADR) is the latest Ofgem introduction that requires the registration of all brokers and TPIs.

Yü Energy is here to help you navigate through all the noise, so we have put together some FAQs to answer your all-important questions.

 

So, what’s happening?

Last year, Ofgem started work on their Microbusiness Strategic Review. The goal was to improve the experiences of micro business customers, by introducing several new benefits and protections in the energy market.

As part of their work over the last 18 months-including the Microbusiness Strategic Review, Ofgem has now issued their proposal decisions.

These include:

  • Greater visibility and full disclosure of TPI costs
  • Microbusinesses are no longer required to submit a termination notice
  • The introduction of the Third-Party Intermediary Alternative Dispute Resolution (TPI ADR) scheme

The introduction of ADR is the one that requires immediate attention for brokers and TPIs.

 

What does this mean for brokers and TPIs like me?

Ofgem has now decided that energy suppliers will only be allowed to work with brokers and TPIs who are registered to the new, approved dispute resolution scheme.

While you do still have some time to register, we strongly suggest getting this done as soon as possible to avoid any potential impacts on your ability to continue working with energy suppliers.

 

Why should I bother joining?

The scheme will allow you to keep selling energy contracts and allow you to maintain relationships with your microbusiness customers and suppliers.

But there are a host of other benefits. Registering to the Alternative Dispute Resolution (ADR) scheme will help you be a better broker. You’ll get insight as to how you can improve your service and all-around customer experience.

 

Do all brokers and TPIs have to register?

Yes.

Simply put-if you don’t, Ofgem has decided that you can no longer work with suppliers. Only those listed on the register will be able to continue. You will need to register before the registration window closes on 31st August.

You’ll need to be on top of these key dates of the four-phase Ofgem timeline for ADR:

26th April- 31st August– Registration window for brokers

October– Acceptance confirmation of the scheme and relevant invoicing

November– You are added to the scheme register

December– The ADR scheme officially goes live

 

Where do I register?

You can complete the ADR registration here.

 

What are the costs involved, if any?

According to Ombudsman Services-provider for the ADR scheme, there are subscription and case fees involved.

Here is a full cost breakdown of fees for the first year:

Annual membership subscription- £300/ member

Case fees- £340/case (based on energy supplier charges)

Reduced case fee- £170 (charged for Facilitated Case Resolution (FCR))

 

Is there any more information I need to know on ADR?

We will continue to keep you updated throughout the year with all the latest news.

In the meantime, you can also check out these resources:

Ombudsman Services

Energy Brokers

Application Form: Energy Brokers

Ofgem

Assessment of Ombudsman Services

 

I want to discuss this change in more detail

We know the change is a lot to take in, so if you’d like to chat with a member of our team about the ADR process, please contact Customer Care at: customercare@yuenergy.co.uk or call 0115 975 8258.

 

 

 

 

 

 

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