Micro Business Energy Supply

What is a Micro Business?

Ofgem initiated the concept of a micro business in 2010 because they understood that some businesses in the UK required additional security from the energy market over issues like fair contracting, billing and complaints.

The original definition for a micro business was a business client that:

• Consumes 200,000 kWh or less amount of gas a year
• Or consumed 55,000 kWh or less amount of electricity a year,
• Or had fewer than ten employees (or their full-time equivalent)
• And had a yearly turnover or yearly balance sheet total not exceeding €2m

Under Ofgem’s Retail Market Review (RMR), a major focus was placed on extending this definition to ‘catch’ more businesses that might fall foul of the energy market.

Following the RMR the new description of a micro business is now:

A business customer who:

• Consumed 293,000kWh or less of gas an annual
• Or consumes 100,000 kWh or less of electricity an annual,
• Or has less than ten workers (or their full-time equivalent)
• And has a yearly turnover or yearly balance sheet total not exceeding €2m.

Whilst this isn’t groundbreaking in its additional reach it is bringing into play a greater number of customers, and even in some instances some (traditionally high user) half-hourly meters have been picked up under this expansion.

Following these rules a micro-business customer can require:

• a limit on back billing,
• limits on rollover contracts,
• greater clarity of invoicing and end dates and
• clearer terms and conditions

Successfully, some suppliers have gone further than Ofgem asked and have added all SME (Small and Medium Enterprise) clients in their micro business plans and have further defined and in some cases totally removed their rollover terms.

To find out how your supplier charges in these policies visit our dedicated supplier pages to get all the information you need to navigate the energy market whether you’re a micro, small, medium or large business.

If you’d like to understand whether you are a micro business and how you can help from these rules and protections just give us a call on 0800-208-8301, we’d love to hear from you.