The Energy Ombudsman has recently announced a significant change, raising the maximum award limit for non-domestic cases from £10,000 to £20,000.

This decision doubles the potential payout for complaints processed through its Alternative Dispute Resolution (ADR) scheme and has raised concerns across the UK energy brokering industry.

While this increase is intended to provide greater protection for small businesses with higher energy consumption, it introduces substantial financial risks and amplifies existing issues in the Ombudsman’s decision-making process.

In this update, we break down what brokers need to know,  the ECA’s response, and how you can share your feedback directly with the Ombudsman.

The new £20,000 maximum award limit for non-domestic cases could place a heavy financial burden on energy brokers in an already challenging regulatory environment.

While the Ombudsman’s goal may be to protect microbusinesses, brokers face the real risk of being held accountable for significant payouts.

This increase compounds brokers’ concerns over the decision-making process, which has previously been criticised by members for inconsistency and a lack of proper legal grounding.

With such high stakes, brokers could now find themselves liable for major sums over complaints that may lack robust, balanced evaluation.

This change further underscores the non-level playing field brokers face, which can adversely impact the industry’s overall stability and fairness.

In light of these developments, the ECA recently hosted a webinar introducing the Dispute Resolution Ombudsman (DRO) as an alternative ADR provider for energy brokers.

The DRO has received positive feedback for its approach, particularly in using legally trained professionals who base their decisions on established legal principles.

This provides brokers with a transparent and fairer method of dispute resolution that aligns with industry standards.

ECA Chairman Chris Shaw shared his experience with the DRO, stating,

“From personal experience at Utility Bidder, I have found their approach refreshingly professional – using legally trained handlers and, in my view, making far more accurate decisions.”

For brokers seeking an alternative ADR option, we encourage reaching out to the DRO to learn more about how their approach to decision-making and positive engagement can benefit your business.

Tel: 0333 241 3209

The Energy Ombudsman has opened a feedback channel to gather industry input on the new proposal.

However, we recognise that this opportunity was not widely communicated, and many brokers were unaware of this change. Based on feedback from our members, it appears the Ombudsman used a new email address for notifications, and the announcement may not have been clearly signposted.

This lack of visibility raises concerns about whether the most affected stakeholders had adequate opportunity to respond

We strongly urge all brokers to take this chance to share their thoughts on the proposed changes.

It’s vital that feedback from brokers is considered, ensuring that the Energy Ombudsman makes decisions that reflect the industry’s realities.

Send your feedback to the Energy Ombudsman at: smallbusinessremit@energyombudsman.org 

If you’re a broker or consultant in the energy industry, consider joining the Energy Consultants Association (ECA) to access valuable resources, stay informed, and contribute to the collective voice shaping the future of UK energy brokering.

At The ECA, we stand for transparency and diligence within the energy sector. Our members benefit from industry intelligence, networking opportunities, and a powerful collective voice advocating for fairness and professionalism.

With flexible monthly payment options, joining the ECA has never been easier. Visit our membership page or email enquiries@energyconsultantsassociation.co.uk to take the first step towards a stronger, more empowered future in energy consultancy.

Together, we can drive positive change and foster an environment of growth and success across the energy brokering industry.

As the REC evolves, brokers will be directly impacted by changes in the Code of Practice.

It’s essential for brokers to participate in the feedback process to ensure the final version of the Code addresses the real needs and challenges faced by the industry.

The ECA aims to keep members informed of key proposals, guiding them through submitting feedback to shape a fair and representative regulatory environment.