In this article, we will have a closer look at one of the Competition and Markets Authority (CMA) suggested remedies to make the UK energy market more competitive and consumer-friendly: Suppliers will now be forced to publish their business-to-business tariffs on their websites. This has been common practice in the domestic energy market for some time now and it’s only a logical next step to extend this to the SME market.
What do we know?
What is clear is that suppliers will have to publish their deemed rates. This is something a lot of suppliers already do on a voluntary basis, although they are buried very deep and hard to find unless you specifically know where to look. Hopefully this will offer the market enough stimulation to take advantage of the fixed tariffs on offer as opposed to remaining on the hugely overpriced deemed options that suppliers are still able to enforce when no contract is in place.
Suppliers will also have to publish their standard variable tariffs which are the rates you are moved on to if you do not agree to a new contract at the end of your current agreement. This is a first for the B2B market.
What remains to be seen?
What is not quite clear yet is how suppliers will integrate this with their current offerings. We have spoken to several of the suppliers we work with and have received different answers with no clear indication of what tariffs they plan to publish and at what times.
The changes are due to come into force at the end of June and we expect several different approaches before an established norm as agreed upon but you can be sure these changes are positive for the market and the consumer.
It will keep suppliers on the toes with their offerings more than ever which can only result in lower energy bills for your business. The CMA and Ofgem will be monitoring the outcomes very closely, tolerance for not following the legislation will be very low.
If you have any questions about how this could affect your business in specific, or how you can take advantage of the various changes that will happen over the next months, simply drop us a line.