The chief executive of Ombudsman Services, which runs the Energy Ombudsman, has called for powers to assist more smaller businesses with complaints about their utility services.
Under current rules Ombudsman Services is only allowed to investigate complaints made by individual consumers and microbusinesses with fewer than 10 employees.
Yet complaints from microbusinesses make up 10 per cent of complaints the service handles.
Furthermore, the ombudsman is approached by hundreds of businesses each year but cannot help due to their size.
In a report released today (1 October), Ombudsman Services calls for a review of the type and size of business that is entitled to free redress in energy and telecoms.
Matthew Vickers, chief executive at Ombudsman Services, said: “Small and medium-sized businesses are the backbone of the UK economy, but often lack the protection they need and deserve when using essential services.
“Complaints from microbusinesses make up 10 per cent of the complaints we handle, but we are approached by hundreds of businesses ever year that we can’t help because of their size.
“That means huge numbers of SMEs can’t use our service and therefore don’t have access to free, independent redress if they have a dispute with their energy supplier or telecoms provider.
“Furthermore, we cannot demand action of intermediaries like brokers because these companies are unregulated and fall outside our remit.
“We feel that these gaps in protection should be addressed for the sake of the UK’s vitally important SMEs and the wider economy.
“Unresolved problems with broadband or energy can have a huge impact and put prosperity and livelihoods at risk. These services are as essential for businesses as they are for consumers, so protection and redress are hugely important.”
Vickers further cited the example of the Financial Conduct Authority recently extending access to the Financial Ombudsman to 210,000 more SMEs.
These changes mean SMEs with up to 49 employers and an annual turnover of up to £6.5 million, or a balance sheet up to £5 million, can now refer unresolved financial services complaints to an independent ombudsman.
A recent survey of 600 small and medium-sized businesses commissioned by Ombudsman Services found 30 per cent of SMEs think they get an unfair deal compared to residential customers when buying and using essential services like energy, telecoms and water.
Telecoms services were found to be the biggest source of problems, with 17 per cent having experienced poor service or unfair treatment when finding and using broadband, mobile and landline packages.
The comparable figures for energy and water were 10 per cent and 5 per cent respectively.