PARLIAMENTARY WRITTEN QUESTION
Small Businesses (8 February 2021)

To ask the Secretary of State for Business, Energy and Industrial Strategy, if his Department will work with regulators to expand the definition of microbusiness in the (a) energy and (b) communications sectors to ensure that small and medium-sized enterprises have access to redress.

Asked by:
Kevin Hollinrake (Conservative)

The independent GB regulator, Ofgem, defines a microbusiness as - employing 10 or fewer full-time employees with an annual turnover of 2m Euros or less OR typically spending £10,000-£12,000 per year on gas or electricity.

An energy supply licence obligates suppliers to proactively identify their microbusiness customers and provide information on their formal complaints process. If microbusinesses cannot resolve their complaints in this way, they can complain to the Energy Ombudsman.

Ofcom, the independent UK telecommunications services regulator, has put in place general conditions, which all communication providers must follow, that offer protections to businesses of any size relating to specific provisions on contracting, tariff information, billing procedures and number porting. Ofcom's rules also provide additional protections to businesses with fewer than 10 employees, including access to alternative dispute resolution and protections against mis-selling. All providers must be registered with either the Consumer Ombudsman or the Centre for Effective Dispute Resolution.

The Government takes the view that larger businesses are better able to represent their interests by negotiating contracts for supply, and to make use of approved dispute resolution procedures where necessary.

Answered by:
Anne-Marie Trevelyan (Conservative)
16 February 2021