Explanatory note

This Order amends the Gas and Electricity Regulated Providers (Redress Scheme) Order 2008 (S.I. 2008/2268) (“the 2008 Order”). It inserts a new definition of “small business consumer”. It also extends the definition of “consumer complaint” to include relevant complaints brought by such consumers.

The effect of these amendments is that “small business consumers” are eligible in the same way as domestic consumers and micro businesses to utilise a redress scheme, that regulated electricity and gas providers are obliged by the 2008 Order to join, in respect of certain kinds of consumer complaints. Larger business consumers are not so eligible and are expected to resolve disputes about electricity and gas supply themselves or through the courts.

The new small business consumer definition applies to non-domestic consumers who consume more electricity or gas annually than micro business consumers, up to thresholds of 200,000 kWh for electricity 500,000 kWh for gas. It also applies to non-domestic consumers with both more employees than micro business consumers (but fewer than 50 or their equivalent) and either greater annual turnover or balance sheet total, up to thresholds of £6.5 million and £5 million respectively.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.