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Faster Business Energy Switches - Ofgem Announces New Regulation In 2022

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Ofgem has announced new regulations to push energy suppliers to switch business energy customers within 5 working days. Similar to the domestic regulations introduced in 2018, this is a huge step forward for the customer experience when searching for better business energy deals. 

Ofgem has backed Faster Switching to offer a fast and reliable switching service to bring it in line with the domestic regulations. 

Ofgem has regulated that energy suppliers must offer both domestic and business energy switches the opportunity to switch within 5 working days from 18th July 2022. 

Faster Switching ensures that the switching process is much easier for businesses looking to better manage their energy bills, by having the confidence to switch energy suppliers with ease. This is the first step in reducing the switching timeline, as Ofgem has advised that they plan on reducing this further to deliver energy switching within 2 working days in the future. 

Why Are Ofgem Introducing Faster Switching? 

There are still large amounts of businesses that have never switched energy suppliers in the UK. Ofgem is aiming to break down barriers to allow companies to switch business energy with more confidence. The introduction of Faster Switching will increase market competition resulting in better prices, customer service and better choices.

Will My Business Be Impacted By Faster Switching? 

This regulation only benefits your business. When your business energy contract comes to an end, you will be able to find a new deal and switch much easier from July 2022. 

Ready to find your next business energy deal? Click here to compare the latest prices. 

Who Are Ofgem? 

Ofgem is a regulatory body that protects consumers by delivering a fairer energy market. They are involved in regulating and overseeing energy suppliers operating in the UK as an industry watchdog. 

Ofgem is responsible for setting the price cap based on wholesale market activity. They work independently from the government and energy industry to promote value for money, security of supply, sustainability, developing competition and implementation of government schemes. 

Is There A Price Cap On Business Energy? 

The energy price cap is designed to protect UK households. Businesses do not have an energy price cap as prices are much more competitive due to their buying power and larger consumption. 

However, this does not mean that they do not pay higher prices for gas and electricity when the wholesale energy prices start to increase. 

You can read about the UK’s energy crisis is impacting businesses here. 

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