Trade group presses regulator to make energy market ‘more transparent’

The Association of Convenience Stores (ACS) has made the plea in its response to regulator Ofgem’s consultation on proposed reforms to the microbusiness energy market.

ACS chief executive James Lowman said: “Unfair energy contracts, out of contract rates being imposed unnecessarily and difficulty switching remain significant concerns for our members.

“We encourage Ofgem to act swiftly to make the market and switching process fairer, easier to use and more transparent.

“Convenience store retailers typically have no more advanced knowledge of the energy market than the average consumer and, as a result, can be taken advantage of by third party intermediaries and suppliers.”

In its submission, the ACS says it supports measures that Ofgem has set out including a requirement for a minimum 14-day cooling off period for new contracts.

Ofgem is proposing a series of measures to make the broker/third party intermediary market fairer, including a “principles-based” requirement for suppliers to ensure brokers they work with conduct themselves “appropriately”.

Another proposal includes applying targeted sales and marketing rules to suppliers and brokers through supply licence changes.

Ofgem is also proposing that suppliers will have to maintain existing contract rates for up to 30 days while issues with a blocked switch are resolved.