Micro Business Energy Supply

What is a Micro Business?

The concept of a micro business is initiated by Ofgem in 2010. They believed that some businesses in the UK needed extra protection from the energy market over issues like fair contracting, billing and complaints.

The unusual definition for a micro business was a business customer that:

• Consumed 200,000 kWh or less of gas a year
• Or consumed 55,000 kWh or less 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

According to the RMR the new definition of a micro business is now:

A business customer who:

• Consumes 293,000kWh or less of gas a year
• Or consumes 100,000 kWh or less of electricity a year,
• Or has fewer than ten employees (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.

Under this system a micro-business customer can expect:

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

Happily, some energy suppliers have gone further than Ofgem requested and have integrated all SME (Small and Medium Enterprise) customers in their micro-business policies and have advance limited and in some cases completely removed their rollover terms.

To find out how your energy supplier rates in these policies visit our business energy supplier 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 benefit from these rules and protections simply get in touch with us by calling our energy experts on 08000488472.