Previously, a micro business was an organisation that either:
- Employed less than 10 full time (or equivalent) staff AND has an annual turnover of less than 2 million Euros (yes, Euros), or
- consumed less than 55,000 kWh of electricity per year, or
- consumed less than 100,000 kWh of gas per year.
However from 26th August the consumption thresholds will change, so the new definition will be a company which:
- Employs less than 10 full time (or equivalent) staff AND has an annual turnover of less than 2 million Euros, or
- consumes less than 100,000 kWh of electricity per year, or
- consumes less than 293,000 kWh of gas per year.
It is important to note that a company has to only fit ONE of the criteria to be labelled as a micro-business.
So why is it important to know whether you are a micro-business?
Ofgem has put rules in place to ensure smaller businesses are treated fairly by suppliers and are given clear and simple processes to follow. For example they will have to show the contract end date on their bills, helping smaller businesses know when their contract is due for renewal.
Also, if a smaller business has a complaint with an energy supplier, and it remains unresolved (or cannot be resolved directly) then the customer can settle the dispute via the Energy Ombudsman.
Larger businesses however are still somewhat left to their own devices, and many companies may not think of themselves as "micro". It could also be argued that surely ALL businesses should be treated fairly and provided with clear and accurate information regardless of size?
If you aren’t sure whether your business would be a micro business, or need any help with your energy for your business please contact us on 0800 040 70 90.
