1. Interpretation

1.1 The definitions, below, apply to both this Annex and the Terms of Reference in relation to complaints brought to the Energy Ombudsman regarding Energy Brokers.

“Award” means the compensation awarded to the Complainant. The Award shall be limited to £10,000 (inclusive of VAT, if any) per complaint for Domestic customers and any complaints regarding Energy Brokers. The Award shall be limited to £20,000 for Small Business Consumers with a complaint against Energy Suppliers;

“Customer” means a Small Business Consumer who is party to a contract with a Participating Company of the Energy Ombudsman for the supply or provision of any service falling within the jurisdiction of the Ombudsman and The Energy Ombudsman.

“Energy broker” means an organisation or individual that, either on its own or through arrangements with the other organisations or individuals, provides information and/or advice to a Small Business Consumer about the energy supplier charges and/or other terms and conditions and whose payment for doing so is made or processed by the energy supplier.

“Energy Supplier” means a provider of energy who holds a supply licence for the supply of gas and/or electricity to domestic and/or Small Business Consumers;

“Licence” refers to either:

(a) a gas licence, being;
(i) a licence under section 7A(1) of the Gas Act 1986 (supply licences); or
(ii) a licence under section 7(2) of the Gas Act 1986 (transportation licences); or
(b) an electricity licence, being;
(i) a licence under section 6(1)(d) of the Electricity Act 1989 (supply licences); or
(ii) a licence under section 6(1)(c) of the Electricity Act 1989 (distribution licences);

"Small Business Consumer" as defined in the Gas and Electricity Regulated Providers (Redress Scheme) Order 2008.

As of 19th December 2024 a 'Small Business Consumer' is defined as one with;

• Fewer than 50 employees or their full-time equivalent AND an annual turnover of at most £6.5 million OR a balance sheet total of £5.0 million; or
• An annual consumption of electricity of not more than 200,000 kWh; or
• An annual consumption of gas of not more than 500,000 kWh. Where the Small Business Consumer receives gas and electricity supplied by the same Energy Supplier, the annual consumption of gas and electricity shall be treated separately for the purposes of determining its capacity to make a complaint to The Energy Ombudsman.

“The Energy Ombudsman: Energy Brokers” means the Ombudsman Service provided to Energy Brokers;

“Participating Company” means an Energy Broker admitted into The Energy Ombudsman: Energy Brokers in accordance with the Terms of Reference, the Membership Rules for Participating Companies and the present Annex and, as the context so requires, each and/or any of its subsidiary undertakings from time to time which has put its relevant services under the jurisdiction of the Ombudsman and The Energy Ombudsman: Energy Brokers.

2. Eligibility to become a Participating Company in The Energy Ombudsman: Energy Brokers

2.1 Companies that may become Participating Companies in The Energy Ombudsman: Energy Brokers are;

(a) companies and/or sole traders that describe themselves as Energy Brokers and are engaged in the sale of gas or electricity services;

(b) companies and/or sole traders that describe themselves as Energy Brokers and provide account management services such as dealing with complaints or account actions on a customer’s behalf; and

2.2 Any other entity that the Ombudsman deems appropriate to admit, upon applying, may become a Participating Company, after considering the products and services it supplies.

3. Services

3.1 The services provided by Participating Companies of the The Energy Ombudsman: Energy Brokers which will be covered by, and fall within the jurisdiction of, the Ombudsman and The Energy Ombudsman: Energy brokers are;

(a) the services associated with the sale of and processing of gas and electricity contracts by a Participating Company, including where a contract has been mis-sold;

(b) the services associated with any account management of the customer’s energy supply provided by a Participating Company; and

(c) such other products and services that, with the agreement of a Participating Company, shall fall within the voluntary jurisdiction of the Ombudsman and The Energy Ombudsman: Energy Brokers.

4. Complainants

4.1 Further to, and in addition to, the provisions of paragraphs 3 and 6 of the Terms of Reference, the Ombudsman and The Energy Ombudsman: Energy Brokers shall only have jurisdiction in relation to a complaint against a Participating Company if the person making the complaint;

(a) was, at the time the subject matter of the complaint arose, a customer with a grievance regarding a sale attempted or carried out by a Participating Company; or

(b) was, at the time the subject of the complaint arose, a customer with grievance regarding account management services provided by a Participating Company; or

(c) is acting on behalf, and with the consent, of any person falling within the scope of paragraphs 4.1 (a) and (b) above.

5. Limits on the Ombudsman’s powers

5.1 The Energy Ombudsman: Energy Brokers shall not accept a complaint about a matter which concerns or relates to issues of service provided by an Energy Supplier following a sale by a Participating Company of The Energy Ombudsman: Energy Brokers.

6. Complaint acceptance

6.1 Further to, and in addition to, the provisions of paragraphs 3 and 6 of the Terms of Reference, the Ombudsman and The Energy Ombudsman: Energy Broker shall only accept complaints against an Energy Broker that is deemed a Participating Company and has:

sold or attempted to sell a contract for gas or electricity on behalf of a licenced Energy Supplier.
a contract to provide advice or account management services to the customer in relation to their energy supply.

6.2 On Acceptance of a complaint under clause 6.1 above, The Energy Ombudsman: Energy Brokers will notify the Participating Company of The Energy Ombudsman: Energy Brokers.

7. Remedies

7.1 Where the complaint relates to a gas or electricity contact sold by an Energy Broker in respect of the supply of energy by a licenced Energy supplier, and The Energy Ombudsman: Energy Brokers determines that the contract was mis-sold, The Energy Ombudsman: Energy Brokers may instruct the Energy Broker to cover any financial loss up to £10,000 and any shortfalls in service caused to the customer within the agreed timeframe.

8. Expulsion

8.1 We will maintain a register of the brokers who have joined our scheme which will be made available on our website. The register will be publicly available and will allow suppliers to identify whether a broker firm has signed up to ADR to inform their decision as to whether to work with the firm. If a broker firm is expelled from the scheme, they will be removed from the register. Brokers may be expelled from the scheme if;

(a) They fail to pay annual subscription fees and/or complaint fees to The Energy Ombudsman.

(b) They refuse to implement our remedies or are routinely late in implementing remedies.

(d) They are rude or abusive to The Energy Ombudsman staff, or to customers in the course of making a complaint to The Energy Ombudsman: Energy Brokers.

Terms of reference - Energy Brokers