The Dispute Resolution Ombudsman ADR Scheme for Brokers

From 1st November 2024, the Dispute Resolution Ombudsman (DRO) introduced Alternative Dispute Resolution (ADR) services for TPIs, brokers and their customers. This initiative aims to provide dispute resolution without lengthy and complicated legal proceedings. Yü energy has added the Dispute Resolution Ombudsman ADR scheme as a Qualified Dispute Settlement Scheme (QDSS) for brokers. Our guide outlines the key points of this new ADR scheme, taking you through everything you need to know. 

The DRO is an independent organisation that provides impartial dispute resolution services. It helps businesses and consumers resolve disputes fairly, without the need for court action. The DRO operates in various industries to ensure that complaints are handled without bias, protecting consumer rights. 

The DRO’s ADR scheme covers disputes relating to contract terms, hidden fees, poor service, and misleading advice and ensures compliance with energy industry regulations.  

The ADR scheme follows a structured dispute resolution process, starting with the filing of a complaint and ending with a resolution between both parties. The ADR process typically works as follows: 

1. Raising a complaint – a customer raises a formal complaint against a TPI. This can only happen if they have first attempted to resolve the issue directly with the broker. 
2. Escalation to the DRO –if the complaint remains unresolved after a set period of time, or the broker confirms they have reached a ‘deadlock’, the complaint can then be escalated to the DRO. The complaint can be submitted online, via email, or by post, including relevant documents, evidence, and communications. 
3. Mediation and investigation – the DRO may first attempt mediation, encouraging both parties to reach a mutually agreeable solution. If this fails, the case can move to a formal investigation, where the DRO will conduct an investigation, reviewing evidence from both sides. 
4. Decision and resolution – the DRO will then make a fair and impartial decision, based on the evidence provided. The resolution might involve financial compensation, amendment to contract terms or a formal apology. This resolution may be legally binding. 

Alternative dispute resolution schemes provide brokers with a structured and regulated way to resolve disputes with clients efficiently and fairly. 

Ofgem also states that energy suppliers can only work with TPIs who are registered with a qualifying dispute settlement scheme. This means that by registering with an ADR scheme, brokers can ensure regulatory compliance and build trust and credibility with clients.  

These schemes can be beneficial to both customers and brokers for a number of reasons: 

• Saving costs –ADR schemes are also much more cost-effective than pursuing legal proceedings to settle disputes, with membership fees and administrative costs amounting to a fraction of the cost that would typically be involved in pursuing court proceedings. 

• Saving time – Compared to lengthy litigation, ADR schemes offer a much quicker way to reach a resolution, following a structured and impartial process to reach an amicable conclusion.   

• Reducing risks – Addressing client complaints through an ADR scheme helps brokers mitigate risks and maintain trust within the industry. Unresolved disputes can damage a broker’s reputation, leading to negative client feedback and potential loss of business.  

• Preserving business reputation– disputes that are not handled correctly can result in escalation to regulatory bodies, resulting in formal investigations, fines, or compliance issues. By using ADR, brokers can manage disputes before they reach this stage, protecting their reputation. 

Brokers and TPIs enrolled in the Dispute Resolution Ombudsman ADR scheme are required to pay certain fees. The fee structure is designed to be fair and proportionate, with annual membership costs being based on business turnover. For example, a small business with a turnover of up to £1 million can join for £700 per year. In addition to the membership fee, there is a case fee applied to each dispute handled by the DRO. 

These fees support the operation of the ADR services, ensuring that disputes between brokers and their customers are handled efficiently and impartially. 

It’s important to note that these fees are specific to the Dispute Resolution Ombudsman. Other ADR schemes may have different fee structures, so it is important to check this before you apply. 

Yü energy has added the Dispute Resolution Ombudsman ADR scheme as a Qualified Dispute Settlement Scheme (QDSS) for brokers, allowing us to work with a wider range of TPI partners whilst ensuring customers benefit from fair and impartial dispute resolution. 

We currently work with around 300 TPIs to help them provide a great service to their clients and expand their portfolios and service offerings.  

When you partner with us, you’ll get a dedicated account manager and access to a range of products and energy solutions for your clients.  

If you’d like to join our broker network and become a trusted partner, get in touch to find out more. 

To find out more about Alternative Dispute Resolution, check out our ADR FAQs. 

If you want to sign up for the Dispute Resolution Ombudsman Alternative Dispute Resolution scheme, you can fill out an application here.