Energy Ombudsman reports on first year of broker scheme

Following the successful launch of the dispute resolution scheme for the energy broker market in December 2022, Energy Ombudsman, part of the Trust Alliance Group, has published a review of the scheme during its first year.

Trust Alliance Group (TAG) comprises several businesses, including the Energy Ombudsman and Communications Ombudsman. Its purpose is to build, maintain and restore trust and confidence between consumers and businesses.

Since launching the scheme, the Energy Ombudsman is pleased to announce that 1,890 brokers are now members. During the first 12 months, 741 disputes were accepted, of which 69 per cent were upheld in the consumer’s favour – the two main dispute types being around sales and customer service.

Energy Ombudsman acts independently and impartially to resolve disputes which, in turn promotes fairness and trust within the sector. With the launch of the energy broker scheme, the organisation can support more consumers and businesses with their disputes.

The scheme fills an existing protection gap and enables microbusinesses to resolve disputes they have with energy brokers via an independent body. Previously, these consumers would have had to use the legal system to resolve their disputes – therefore access to the Energy Ombudsman can save them time and money. Energy brokers provide important support to microbusiness consumers and schemes like this can help to build trust and confidence.

Simon Palmer, CEO of Trust Alliance Group added: “I’m delighted that Ed and the team have delivered a successful first year of the scheme. Since its launch, we continue to provide input and support to Government and Ofgem as they consider further strengthening the protections for non-domestic consumers. We’ll continue to work with the sector to ensure our schemes accommodate the Government and Ofgem’s longer term plans for the regulation of the market, whilst also working more broadly to inform policy and address industry-wide issues for the benefit of all.”

Ed Dodman, Director & Chief Ombudsman for Energy Ombudsman said: “We’re pleased with the progress the scheme has made during its first 12 months and recognise that we have had to learn in the process. While dispute volumes were low in the early months, we’ve seen a gradual increase over the year. We’ll continue to work with brokers and the industry to ensure that consumers are aware that they can use this scheme in the event of a dispute arising and that dispute remedies will be implemented on time.”

The Energy Ombudsman continues to develop a good understanding of microbusinesses and the types of complaints that are generated. This will continue during the next 12 months and will be accompanied by a number of initiatives to improve the service offered to microbusinesses.

To read the full Broker Dispute Resolution Scheme report, please visit www.energyombudsman.org/reports-and-data/energy-broker-report