Ice Cream Man's Energy Nightmare

Richard Simpson, who left offshore work to run an ice cream business in Buckie, faced a significant challenge on his first day. An energy broker offered a deal that, upon review, was found to be 70% more expensive than his current rate. Despite his concerns, the broker insisted a contract was agreed upon over the phone, leaving Simpson locked in and questioning his business's viability.

After several months of anxiety, Simpson sought help from the Energy Ombudsman. The independent body ruled the contract unfair, enabling him to switch providers and secure a fair price for his business. This experience left him frustrated by the lack of protections for small businesses compared to domestic customers, noting the absence of cooling-off periods or required signatures.

Research by Consumer Scotland indicates this is a widespread issue, with one in five Scottish firms experiencing energy contract problems. Many of these contracts are arranged through lightly regulated third-party brokers. Consumer Scotland advocates for greater regulation of these brokers due to issues with billing, metering, and disconnections.

The UK government has announced plans to regulate all energy brokers through Ofgem, aiming to end the exploitation of small businesses. A consultation on these new plans has closed, with legislation anticipated later this year. While welcomed, some industry groups believe reforms should go further, treating small firms with the same considerations as individual consumers.