Micro-Business Explained

Ofgem  introduced new rules to give smaller companies greater protection when purchasing their energy supplies.

Since 18 January 2010 these rules apply to those enterprises that can be categorised as a micro-business, which can be defined by the following criteria:

• consumes less than 200,000 kWh of gas a year, or
• consumes less than 55,000 kWh of electricity a year, or
• has fewer than ten employees (or their full-time equivalent) and an annual turnover or annual balance sheet total not exceeding €2m.

It should be noted that a business only has to meet one of these criteria to qualify as a micro-business customer. If you are a micro businesses, you should then enjoy additional protection when being sold energy and gas, with energy suppliers having to follow set guidelines when dealing with you.