Julian Morgan, managing director of the price comparison, switching and advice service for energy users said the sheet shone a much-needed light on the role of brokers and switching services – sometimes referred to as Third Party Intermediaries (TPIs).
“This information sheet simply and clearly explains the work of TPIs, offering small and medium-sized firms greater transparency when it comes to how services like EAL work,” Mr Morgan said.
“Crucially, it offers guidance on the right questions SMEs should ask before using a TPI to switch supplier.
“I hope that this sheet arms SMEs with the information they need to sort the unscrupulous TPIs from reputable, independent services like EAL.”
The fact sheet, produced by the energy regulator in association with the Citizens Advice Service, provides straight answers to a range of questions about the work of TPIs. It addresses whether TPIs always research the whole market to find the best energy deal, and explains whether firms are obliged to accept an offer presented to them.
The fact sheet also explains the fundamental principles that TPIs should abide by when dealing with business energy customers: honesty, respect, accuracy, transparency, customer-focus and professionalism. Importantly, it also explains what firms can do if they are not happy with the service provided by a TPI.
“We are hopeful that this is a crucial step in weeding out the unscrupulous rogue players from the market, who engage in cold calling and other high-pressure sales techniques to win business,” Mr Morgan said.
“We also hope it will drastically reduce the bad practices of some cold calling agencies that work for a small selection of suppliers and do not offer real price comparison.
“It is important for SMEs to understand that not all TPIs are the same. Services like ours that are reputable and truly independent actually help customers navigate through what can be a very confusing market.
”The fact sheet itself explains that there are few published prices for business energy tariffs, and SMEs wanting to shop around independently must contact suppliers individually to obtain their prices. This can be a time consuming and complex process.
“Using a highly-regarded service like ours really does make sound financial and business sense for SME owners who just want to get on with the job of running their organisations, secure in the knowledge they have sourced the best possible energy deal.”
The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.
The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.
For further information visit www.energyadviceline.org.uk
To obtain the Ofgem and Citizens Advice Service Fact Sheet visit www.ofgem.gov.uk/ofgem-publications/83822/481tpifacsheetmarch15web-pdf