The Gas and Electricity Regulated Providers (Redress Scheme) (Amendment) Order 2014

Made: 1st July 2014

Laid before Parliament: 8th September 2014

Coming into force: 8th August 2014

Accordingly the Secretary of State makes the following Order:

Citation and commencement

1

This Order may be cited as the Gas and Electricity Regulated Providers (Redress Scheme) (Amendment) Order 2014 and comes into force on 8th August 2014.

Amendment of the Gas and Electricity Regulated Providers (Redress Scheme) Order 2008

2

In article 2(1) (interpretation) of the Gas and Electricity Regulated Providers (Redress Scheme) Order 2008[^f00003], in the definition of “relevant consumer”—

• (a) in sub-paragraph (b)(i)(aa), for “55,000 kWh”, substitute “100,000 kWh”;

• (b) in sub-paragraph (b)(i)(bb), for “200,000kWh”, substitute “293,000 kWh”.

Signed

Gregory Barker — Minister of State — Department of Energy and Climate Change — 1st July 2014

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order amends the Gas and Electricity Regulated Providers (Redress Scheme) Order 2008 (“the 2008 Order”). It changes the upper limit for annual consumption of electricity and gas for a person to qualify as a “relevant consumer”, where that person is supplied with gas or electricity by a regulated provider of those utilities at premises other than domestic premises.

“Relevant consumers” may utilise a redress scheme, that regulated providers are obliged by the 2008 Order to join, in respect of certain kinds of consumer complaints. In relation to non-domestic consumers, the upper annual consumption limits demarcate the line between small businesses (sometimes called micro businesses) and larger businesses. Micro business consumers are eligible in the same way as domestic consumers to utilise the redress scheme, unlike larger business consumers, who are expected to be able to resolve disputes about electricity and gas supply themselves or through the courts.

The raising of the annual consumption thresholds in this Order from 55,000 kWh to 100,000 kWh for electricity consumption, and from 200,000 kWh to 293,000 kWh for gas consumption, will increase the numbers of micro business consumers able to utilise a redress scheme.

A validation impact assessment showing the likely cost implications for both energy providers and newly eligible micro businesses is published alongside the Explanatory Memorandum for this instrument, and is available at www.legislation.gov.uk. There are likely to be cost implications for both energy providers and newly eligible micro businesses, however any increased costs are expected to be outweighed by the savings made by micro businesses. No impact on civil society organisations or the public sector is foreseen.

Footnotes

[^f00001]: 2007 c. 17.

[^f00002]: The Gas and Electricity Markets Authority was established under section 1(1) of, and Schedule 1 to, the Utilities Act 2000 (c.27).

[^f00003]: S.I. 2008/2268.