Over 400 small businesses took energy complaints to the Ombudsman last year - but many still don’t know that they can.

Last year, more than 13,000 microbusinesses raised energy disputes with Energy Ombudsman, with just over 400 small businesses also accessing the service.

Since December 2024, the Ombudsman’s remit has officially expanded to include small businesses, meaning more owners can now access independent redress when problems arise. The change, introduced following reforms by Ofgem, gives small businesses similar protections to microbusinesses and domestic consumers, when resolving disputes with energy suppliers.

However, awareness of the expanded service is still growing. Many small businesses may not yet realise they can now take complaints to Energy Ombudsman when issues such as billing errors, contract disputes, or poor customer service can’t be resolved directly with their supplier.

Despite the new protections, the difference in case volumes highlights a simple truth: many small business owners are only just discovering that the service is available to them.

Ed Dodman, Chief Ombudsman for Energy, said:

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“It is really encouraging to have seen over 400 small businesses use our service in its first year, accessing redress that they didn’t previously have. We know that as awareness builds, we will see even more businesses access Energy Ombudsman.

“With some uncertainty in the market, it is more important than ever that small business owners know they can bring unresolved disputes to us for free and impartial redress.”

Why energy disputes are important for small businesses

Small businesses often operate on tight margins, so even minor mistakes can have significant financial consequences. Complaints frequently arise when contracts automatically roll over, estimated bills differ from actual usage, or customer service falls short.

The energy market can be complex for small businesses, and many struggle to identify overcharges or errors quickly, which can allow disputes to escalate unnecessarily.

When businesses can complain

The first step is always to contact the supplier directly. If the issue can’t be resolved after eight weeks, or the supplier issues a deadlock letter, businesses can escalate the complaint to Energy Ombudsman.

Eligibility covers both microbusinesses and small businesses, typically defined by staff numbers and annual energy consumption. The Ombudsman can investigate disputes such as billing, contracts, metering, and customer service.

What Energy Ombudsman can do

Energy Ombudsman provides a free and impartial service. It investigates disputes and can help businesses secure remedies such as:

• Correcting bills
• Arranging compensation
• Requiring suppliers to apologise or explain errors
• Facilitating other resolutions with the supplier

Decisions are binding on the supplier but not on the business, meaning small businesses can decide whether to accept the outcome.

Common complaint types

The most frequent issues raised by small businesses include:

• Billing discrepancies – incorrect or estimated bills that do not reflect actual usage
• Contract rollovers and pricing terms – automatic renewals or unclear tariffs
• Metering issues – faulty readings or delays installing accurate meters
• Customer service failures – slow responses or unresolved disputes