Ofgem Non-Domestic Market Review UK: What the Reforms Have Changed and What is Next

The Origins of the Non-Domestic Market Review

Ofgem launched its non-domestic market review in 2021, following years of complaints from small business customers about opaque broker practices, unfair contract rollover, back-billing disputes, and inadequate access to redress. The review was the most comprehensive examination of the business energy market since the introduction of competitive supply in the late 1990s.

The 2021 call for evidence gathered submissions from suppliers, third-party intermediaries, trade bodies, consumer groups, and individual businesses. The evidence confirmed a consistent pattern of harm concentrated among microbusiness and small business customers: undisclosed broker commission inflating unit rates, automatic contract rollovers at materially worse terms, estimated billing running unchallenged for extended periods, and a complaints process that many businesses found inaccessible or ineffective.

Ofgem's published summary of the call for evidence responses identified the following as the principal drivers of poor outcomes: the absence of direct TPI regulation, weak renewal notification requirements, inadequate commission transparency, and the limited scope of Ombudsman access for businesses above the microbusiness threshold. These findings shaped the statutory consultation that followed in 2022.

The 2022 Statutory Consultation and Its Outcomes

Ofgem published its statutory consultation on non-domestic market reforms in 2022, setting out proposed amendments to the Standard Licence Conditions for electricity and gas suppliers. The consultation covered four main areas: broker commission and conduct, contract renewal protections, back-billing rules, and complaint handling.

The consultation attracted responses from across the market, including from suppliers, broker trade bodies, and consumer organisations. The principal points of contention were the scope of the commission disclosure requirement (whether it should extend beyond microbusinesses to all non-domestic customers) and the definition of what constitutes adequate renewal notification.

The final package of amendments, implemented in December 2022, represented a strengthening of the existing SLC framework rather than a wholesale restructuring. The changes were targeted at microbusiness customers, leaving larger non-domestic customers largely outside the enhanced protections.

The December 2022 SLC Amendments: The Detail

The December 2022 amendments to the electricity and gas supply licences introduced the following substantive changes:

Enhanced SLC 7A microbusiness definition and protections: The definition of a microbusiness customer was clarified and the protections attached to that classification were strengthened. The qualifying criteria remained: fewer than 10 employees, or electricity consumption below 100,000 kWh per year, or gas consumption below 293,000 kWh per year, or annual turnover or balance sheet not exceeding EUR 2 million. The changes made explicit that a customer meeting any one of these criteria qualifies, not all of them.

Broker commission disclosure: Suppliers were required to ensure that TPIs acting on their behalf provide written disclosure to microbusiness customers of the remuneration the TPI will receive in connection with the contract arrangement. The disclosure must be provided before the contract is signed and must be sufficiently specific that the customer understands the financial interest the TPI has in recommending the contract.

Renewal notification windows: Suppliers were required to notify microbusiness customers of approaching contract end dates within a defined advance window. The notification must clearly state the end date, the terms of any proposed renewal, and the customer's right to switch or renegotiate. Rollovers without adequate notification became a specific basis for complaint and Ombudsman referral.

Complaint handling enhancements: Suppliers were required to maintain accessible complaints processes specifically capable of handling microbusiness disputes, including those arising from TPI-arranged contracts. The eight-week deadlock period triggering Ombudsman access was confirmed and clarified.

The Ongoing Review: What Remains Unresolved

The December 2022 amendments were explicitly framed by Ofgem as a first phase of reform rather than a final settlement. Several significant issues remain under active review:

Microbusiness threshold expansion: Ofgem has published analysis suggesting that many businesses with 11 to 49 employees, which fall outside the current microbusiness definition, face market dynamics similar to those of covered microbusinesses but without equivalent protections. The review of whether the thresholds should be expanded is ongoing, with Citizens Advice and small business organisations arguing for a broader definition.

TPI direct regulation: As covered in detail in the companion article on TPI regulation, the question of whether energy brokers should be brought into a direct regulatory regime has not been resolved. Ofgem has consulted on options but has not implemented direct TPI licensing. DESNZ has indicated openness to a mandatory accreditation scheme but no enabling legislation has been enacted as of May 2026.

Non-microbusiness protections: The December 2022 amendments left businesses above the microbusiness threshold largely unaffected by the new protections. Ofgem's published position acknowledges that these businesses also experience harm from broker mis-conduct and opaque contracting, but the regulatory response for this segment has been more limited.

Parliamentary Scrutiny and the Business and Trade Committee

The House of Commons Business and Trade Committee has examined the non-domestic energy market as part of its scrutiny of energy policy and small business support. Evidence sessions have heard from small business representatives, consumer groups, and suppliers about the adequacy of the post-2022 protections and the pace of reform.

The Committee's published reports have generally supported faster and more comprehensive reform, including direct TPI regulation, and have questioned whether the concentration of enhanced protections in the microbusiness category adequately reflects the scale of harm experienced by slightly larger small businesses. Government responses to these reports have acknowledged the concerns while pointing to the ongoing review processes as the appropriate mechanism for further change.

DESNZ has published policy positions on non-domestic energy market reform as part of its broader energy policy programme, including in the context of the Energy Act 2023. The interaction between the legislative framework established by the Act and Ofgem's ongoing market review work creates a multi-strand reform programme whose timeline and ultimate scope remain subject to ongoing political and regulatory decisions.

What the Reforms Have Practically Changed for Business Customers

For microbusiness customers dealing with suppliers and brokers since December 2022, the practical changes are:

• A legal entitlement to written commission disclosure before signing a broker-arranged contract
• Earlier and clearer notification of contract renewal dates, reducing the risk of rollover without genuine awareness
• A more clearly defined complaints pathway and access to the Energy Ombudsman on reaching deadlock
• Supplier accountability for the conduct of TPIs acting on their behalf, providing a regulated party against whom complaints about broker conduct can be directed

For businesses above the microbusiness threshold, the December 2022 changes delivered limited direct benefit. These businesses continue to rely on general contract law, any applicable voluntary codes, and civil litigation routes for redress against supplier or broker misconduct.

Frequently Asked Questions

Editorial disclaimer: The answers below are provided for general guidance. Ofgem's non-domestic market review is an ongoing process and the regulatory framework may change. Verify current protections against Ofgem's published Standard Licence Conditions at the time of any contract decision.

When did Ofgem's non-domestic market review start and what prompted it?

Ofgem launched the non-domestic market review with a call for evidence in 2021, following sustained complaints from small business customers and consumer organisations about broker commission practices, automatic contract rollover, and inadequate access to redress. The review built on earlier work by Citizens Advice and Which? documenting harm in the business energy market and on Ofgem's own monitoring data showing persistently poor outcomes for microbusiness customers.

Do the December 2022 protections apply automatically or do I need to claim them?

The enhanced protections for microbusiness customers apply by operation of the supplier's licence conditions. A qualifying microbusiness does not need to take any specific action to invoke them. However, in practice, ensuring the protections are applied requires the business to know they exist. If a broker does not provide commission disclosure before presenting a contract for signature, the business should ask for it and, if refused, raise a complaint with the supplier before signing.

Is Ofgem planning to expand protections to businesses with 11-49 employees?

Ofgem has published analysis recognising that businesses with 11 to 49 employees experience market harms similar to microbusinesses but sit outside the current definition. As of May 2026, no expansion of the microbusiness threshold has been implemented, but the review is ongoing. DESNZ has indicated support in principle for broadening the scope of protections, subject to further consultation.

What is the difference between the non-domestic market review and the Energy Act 2023?

Ofgem's non-domestic market review is a regulatory programme that operates through amendments to supply licence conditions. It does not require primary legislation. The Energy Act 2023 is primary legislation that expanded Ofgem's powers and established new market frameworks. The two programmes interact but are distinct: the review delivers specific conduct standards for suppliers and TPIs, while the Act creates the broader legislative framework within which Ofgem operates.

How can a business stay informed as further reforms are announced?

Ofgem publishes consultation documents, decision letters, and licence condition amendments on its website at ofgem.gov.uk. DESNZ publishes policy statements and consultation responses on gov.uk. Citizens Advice publishes analysis of non-domestic market developments from a consumer perspective. Subscribing to Ofgem's published updates and monitoring the DESNZ non-domestic energy policy pages provides advance notice of changes before they take effect.

How we verified this

This article draws on Ofgem's published non-domestic market review documentation, including the 2021 call for evidence, the 2022 statutory consultation, and the December 2022 licence condition decision documents, all available at ofgem.gov.uk. The SLC 7A microbusiness definition and protections are verified against the current published licence conditions. References to parliamentary scrutiny are based on House of Commons Business and Trade Committee published reports and evidence sessions.

Sources

• Ofgem microbusiness consumer protections and December 2022 amendments
• Ofgem Standard Licence Conditions for electricity and gas suppliers
• DESNZ non-domestic energy policy publications
• Citizens Advice: business energy market analysis and consumer guidance

For a detailed breakdown of the microbusiness definition and the thresholds that determine which protections apply, see microbusiness energy rights UK. For the broker commission disclosure rules introduced by the December 2022 amendments, see business energy broker commission UK.

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