As we enter the year 2023, it is essential to understand your energy rights and make informed decisions regarding your energy consumption. With the ever-changing landscape of the energy sector, it can be overwhelming to navigate through the complexities of energy bills, deals, prices, and regulations.
This article aims to provide you with a comprehensive guide to help you understand and make the best choices for your energy needs.
Micro-businesses
Ofgem requires suppliers to disclose the end-date as-well as the notice period on all of their bills for any fixed-term contract. This is to help small businesses research the energy market and compare prices.
They also allow smaller businesses the ability to tell their energy supplier that they would like to switch supplier at the end of their contract at any time. This can even be before the notice period.
If your contract started either on or after the 30th of April 2015, then the notice period for terminating a contract has been reduced. The old notice period was 90 days long, it has now been shortened to 30 days. Further to this, energy suppliers now have to tell smaller firms how much energy they have used each year and also inform them on how the price of their current deal stacks up against new prices. This should be provided at around 60 days before your fixed-term ends. This should help redistribute the power from supplier to customer when it comes to negotiating a new contract.
What do you need to do to prove you operate a ‘Micro-business’?
Micro-businesses are more common than you may think within the UK. A micro-business is defined by the following:
- Operating with less than 10 employees and an annual turnover/balance sheet of < €2,000,000.
- OR Consumption of electricity falls below 100,000 kWh annually.
- OR Consumption of gas falls below 293,000 kWh annually.
This amount of energy roughly equates to about £10,000 (Excluding VAT and other taxes/levy’s) annually for each fuel-type. If you are paying more than this then you should contact your supplier.
It is your responsibility to provide relevant information regarding your business and to prove the three qualifying statements above. In return your supplier is required by Ofgem to undertake reasonable steps to identifying if your business qualifies as a micro-business.
Your supplier doesn’t think that you operate as a micro-business – what do you do?
It is unsurprising that sometimes there are disputes regarding the definition of businesses.
If this happens to you then the first thing that you should do is gather the relevant evidence to prove the three qualifying statements, or as much as you can possibly find. Once you have done this you should approach your supplier with this evidence.
If the dispute continues, then you should remind them of their responsibility to take reasonable steps in the identification process.
Your energy contract has been continued without any consent – why?
If you do not inform your supplier that you intend to end the contract before the notice period then it is likely that they have ‘rolled’ you over to a new contract. It is important to know if your business qualifies as a micro-business or not if this is the case. If it does, then suppliers can only continue on this rolled-over contract for one year maximum according to Ofgem.
You are looking for a new energy supplier – what should you look out for?
First of all, you should definitely research what type of energy contract it is that suits you best. Not every type of contract suits every customer. Once you have found a contract that looks good, it is important to actually understand the content within it. It is easy to get caught up in industry jargon, but it is well worth taking the time to understand exactly what it is you are signing up for. The terms and conditions and statement of renewal terms are two key locations where you should focus your expansion of understanding. You should also keep them in-case you need them in the future. Once signed up, ensure to keep a copy of all correspondence – this will help with any possible disputes.
Deemed contracts
What is a deemed contract?
These contract-types are used whenever you move into a new premise and there is no contract agreed with a supplier. This only happens if you begin to consume electricity or gas. Another situation where this may arise is if you end your existing contract but continue to use energy.
This may seem strange – but it can arise in the following ways:
Firstly, if the original contract is terminated by either customer or the supplier – but the supplier continues to supply energy. A deemed contract is likely to arise if there is no clear statement in the original contract of what will happen after termination. This in combination with continued usage of gas or electricity could lead to a deemed contract.
Secondly, if the original contract expires but you continue to use gas and electricity you are likely to be placed on a deemed contract if the original contract does not clearly state what will happen after expiry. Sometimes supplier contracts do not contain renewal provisions, or sometimes state that the original contractual terms still apply. If the existing customer has told their supplier that they do not wish for the original contract to continue any farther, it can also lead to a deemed contract.
It is important to note that these deemed contracts offer prices on average 80% higher than charged rates within normal negotiated contracts. If you think that you are on a deemed contract, then it is important to contact your supplier and research other supplier prices. It is estimated that around 10% of micro-businesses are currently on deemed contracts – so this could apply to you.
What are your rights when placed on a deemed contract?
Listed below are all of the responsibilities your supplier must do:
- Take all reasonable steps to provide you with the Principal Terms of your deemed contract. This includes the charges and fees.
- Provide a full copy of the contract should you ask for it. It is recommended that you do.
- Take all reasonable steps to inform you of other available contracts, as-well as how to obtain information on them.
- Take all reasonable steps to make sure that the deemed contract does not contain terms that are unduly onerous.
Listed below are all of the actions that your supplier cannot take:
- Prevent you from switching to a different supplier. They cannot prevent you from switching at any time or for any reason. This is hugely important to know.
- Cannot require any period of notice before terminating deemed contract.
- Cannot demand a termination fee for cancellation of deemed contract.
Who can help you with energy bills and budgeting?
If you encounter trouble paying your bills or find a problem with the proposed payment plan presented by your supplier, then you should contact The Citizens Advice Consumer Helpline. They will offer advice to anybody who seeks it. Other websites that are recommended for those struggling with budgeting or managing debt are listed below:
These websites offer free advice to anybody that seeks it. If you have any worries do not hesitate to reach out to these resources, the earlier you do the more likely you can solve any issues you face.
Energy Bill
How can I understand my energy bill?
Your energy bill is a detailed breakdown of the charges for your gas and electricity usage. Understanding your bill is crucial to monitor your energy costs and identify areas where you can reduce your consumption.
In 2023, energy bills will continue to include key components such as the unit rates for gas and electricity, standing charges, and any additional fees or taxes.
Reading your bill thoroughly and keeping track of your usage will empower you to have better control over your energy expenditure.
What are the key components of my energy bill?
When analyzing your energy bill, it is essential to be aware of the key components that contribute to the final costs. These components include the unit rates, standing charges, and any additional charges applied by your energy supplier.
To breakdown each section:
- The unit rates refer to the cost per kilowatt-hour (kWh) of gas or electricity consumed.
- The standing charges are fixed daily fees that cover the maintenance and upkeep of the energy network.
Understanding these components will give you a clearer picture of how your energy costs are calculated and enable you to identify potential areas for savings.
How can I reduce my energy bill in 2023?
Reducing your energy bill involves a combination of energy efficiency practices and selecting an energy deal that suits your requirements.
To lower your energy usage, consider implementing energy-saving measures such as insulation, smart thermostats, and energy-efficient appliances.
Additionally, switching to an energy supplier that offers competitive rates and discounts can significantly reduce your overall energy costs. It is advisable to compare different energy deals and assess the savings you can achieve before making a switch.
Energy Deal
How do I choose the best energy deal for 2023?
Choosing the best energy deal for 2023 requires careful consideration of various factors. Firstly, analyze your energy usage patterns and determine whether a fixed or variable rate tariff would be more suitable for you. A fixed-rate tariff provides stability as the unit rates remain constant for a specific period, offering protection against price fluctuations. On the other hand, a variable rate tariff can be beneficial if energy prices decrease during the term. Additionally, look out for special energy deals that suppliers may offer in 2023, such as discounted rates or incentives for switching.
What factors should I consider when selecting an energy supplier?
Selecting an energy supplier goes beyond the price offered for gas and electricity. Consider factors such as customer service, reputation, and green credentials. Some suppliers may source electricity from renewable sources and contribute to the transition towards clean energy. Conducting thorough research and reading customer reviews can provide valuable insights into the overall service quality offered by different suppliers.
Are there any special energy deals for 2023?
While the specific details of special energy deals for 2023 may vary, it is worth keeping an eye out for offers that can help you save money or benefit from additional perks. Energy suppliers often introduce limited-time promotions, such as cashback rewards or free energy-saving devices, to attract new customers. Stay informed about these deals through energy price comparison websites, supplier newsletters, or by seeking advice from energy experts.
2023 Energy Prices
What are the projected energy prices for 2023?
While it is challenging to predict exact energy prices for 2023, it is important to be aware of the factors that influence pricing. Wholesale energy prices, influenced by supply and demand dynamics, play a significant role in determining retail energy prices. Additionally, the government’s energy policies and initiatives, such as the energy price cap, can impact the overall cost of energy. Staying informed about market trends and regularly reviewing energy deals can help you find the best energy supplier for lower prices in 2023.
How can I find the best energy supplier for lower prices in 2023?
Finding the best energy supplier for lower prices in 2023 involves conducting thorough research and comparing the offers available in the market. Utilize energy price comparison websites to compare prices, tariffs, and customer reviews. Consider factors such as the length of the contract, exit fees, and any potential discounts or rewards for switching. By taking the time to compare different suppliers, you can secure a deal that aligns with your budget and consumption needs.
Is there a price cap or guarantee for energy prices in 2023?
As of 2023, the energy price cap continues to play a role in protecting consumers from excessively high energy prices. The price cap limits the maximum amount energy suppliers can charge for default tariffs. However, it is important to note that the price cap may vary depending on the region and type of energy meter you have. Therefore, it is advisable to monitor any changes to the price cap and explore fixed-rate tariffs that offer price stability and protection against future increases.
Energy Supply and Tariffs
How do I switch energy suppliers in 2023?
Switching energy suppliers in 2023 is a straightforward process that can be initiated by comparing different deals and selecting a new supplier. Start by researching available options and assessing their suitability based on factors such as price, tariff type, and customer reviews. Once you have chosen a new supplier, provide them with the necessary details to complete the switch, such as your current meter readings. The new supplier will handle the transition process, ensuring a seamless switch without any disruption to your energy supply.
What is the difference between a fixed rate and variable rate energy tariff?
A fixed-rate energy tariff offers stability as the unit rates are locked in for a specific period, typically one to three years. This type of tariff can protect you from price increases during the fixed period, giving you better control over your energy budget. In contrast, a variable rate tariff allows the unit rates to fluctuate based on market conditions. While variable rate tariffs can offer flexibility and potential savings if prices decrease, they are also subject to increases that can impact your overall energy costs.
How do I keep track of my energy consumption with a smart meter?
A smart meter is a device that measures and displays your gas and electricity usage in real-time. By having a smart meter installed, you can easily monitor your energy consumption and make informed decisions about your usage habits. Smart meters provide accurate data, enabling you to identify any inefficiencies and adjust your energy consumption accordingly. Additionally, smart meters eliminate the need for manual meter readings and can help you manage your energy costs more effectively.
Ofgem and Energy Regulations
What role does Ofgem play in energy regulation for 2023?
Ofgem, the Office of Gas and Electricity Markets, is the regulatory authority for the energy industry in the UK. In 2023, Ofgem continues to monitor and enforce regulations to ensure fair practices and protect the interests of energy consumers. Ofgem sets regulations regarding energy prices, the energy supply market, and the quality of service provided by energy suppliers. It also works towards promoting competition, energy efficiency, and the transition to clean energy sources.
What are the current energy scheme regulations?
The current energy scheme regulations encompass various initiatives aimed at promoting energy efficiency, renewable energy, and reducing carbon emissions. These include schemes such as the Energy Company Obligation (ECO), which mandates energy suppliers to provide energy efficiency measures to eligible households. Additionally, the Feed-In Tariffs (FITs) scheme encourages the adoption of small-scale renewable energy generation, allowing households to generate their own clean energy and receive payments for any excess energy fed back into the grid.
Are there any new policies or initiatives in place for 2023?
The energy sector in the UK is continuously evolving, and new policies and initiatives are implemented to address emerging challenges. The Energy Act 2023, passed by the UK Parliament, outlines several measures to support the country’s transition to a net-zero economy. These measures include investments in renewable energy, improvements to energy efficiency in buildings, and the development of an integrated energy system. Staying informed about these policies can help you understand the future direction of the energy sector and make informed decisions regarding your energy consumption.
In conclusion, understanding your energy rights is crucial in making well-informed decisions regarding your energy consumption. By familiarizing yourself with your energy bill, exploring different energy deals, staying informed about energy prices, being aware of energy supply and tariff options, and understanding the role of regulatory bodies such as Ofgem, you can navigate the energy landscape confidently. With the right knowledge and a proactive approach, you can reduce your energy costs, contribute to a more sustainable future, and make the most out of your energy consumption in 2023.