The Microbusiness Strategic Review has brought about some key decisions that will impact energy suppliers and brokers alike.
Yü Energy is here to help you gain a better understanding of what’s happening. We have put together some FAQs to answer your all-important questions.
So, what’s happening?
To help resolve challenges for microbusinesses customers, Ofgem published their final decision on the outcome of the Microbusiness Strategic Review (MBSR).
The full document can be found here: Decision on Microbusiness Strategic Review.
What does this mean for brokers like me?
For the estimated 2,000 brokers across the country, here are the key headline decisions:
Alternative dispute resolution
A new requirement is that energy suppliers under license will only be permitted to work with brokers who have signed up to the Alternative Dispute Resolution scheme.
Key dates to note:
26th April- 31st August– Registration window for all brokers
October– Acceptance confirmation of the scheme and relevant invoicing
November– You are added to the scheme register
1st December – The ADR scheme officially goes live
Termination notification requirements
Energy suppliers will not be permitted to require microbusinesses to provide notice to switch away at the end of their contract.
Working on information and awareness
Ofgem will be working alongside Citizens Advice Bureau to continually provide up-to-date guidance and awareness on the energy market.
Provision of principal contractual terms
Customers will be required to be provided with the key terms of their contract before agreeing the contract, Yu energy will be ensuring the Principal Terms go out with all quotations from the 1st October.
Disclosing Broker Commissions
Broker commissions are required to be disclosed providing the customer with full transparency of costs. The requirement is to provide a breakdown of the kWh uplift, the annual cost and contract cost in accordance with the consumption figures provided to generate the quote.
What is Yü Energy doing to comply? How does this impact my working relationship with Yü?
The decision to disclose broker charges and commissions will result in the following activity from us, to ensure compliance from both the supplier and broker sides:
- We will be displaying the broker commission on quotes, welcome pack, and Principal terms. We will be putting out a formal TPI brief soon to confirm when this will be implemented.
- Termination notification requirements. Yü Energy will not require notice to be provided on contracts with a contract end date following the 1st October. For contracts ending prior to this date, we will still require the relevant 30 days’ notice.
Do I need to do anything in the meantime?
No. As mentioned above, we’ll put out a formal brief for all of our brokers and TPIs shortly.
Is there any more information I need to know on Microbusiness review?
We will continue to keep you updated with all the latest news. In the meantime, here are some more resources for more information.
I would like 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 Microbusiness Strategy Review, please get in touch with your TPI Engage Account Manager.