What is a micro business?
How do we determine who is a microbusiness?
What happens if you challenge us on these questions?
When can I terminate my contract if I am a Microbusiness?
Why are we asking you for your turnover in euros?
Once we determine you are a Microbusiness or non Microbusiness will this be the same for my Gas and Electricity contract?
What if I refuse to give information relating to my business status?
Can I change my Microbusiness status mid contract?
What if I do not know what my annual business consumption is?
What if we forget to ask you the questions to determine if you are a Microbusiness or get it wrong?
What happens if I have signed a new contract before the 18th January 2010?
What if I have less than 10 employees but more than 2 Million Euro Turnover / balance sheet total?
Will the pricing structure be affected by the Microbusiness status?
What authority does my appointed consultant or broker have to issue a termination notice on my behalf?
What authority does my appointed consultant or broker have to issue notification to prevent automatic contract extension of my contract?
What are the Principal Terms?
What is a 'Statement of Renewal Terms' (or SoRT)?
What is a notification?
For how long can a microbusiness contract be automatically extended (rolled over)?
What is the 'Relevant Date'?
How do I know what my 'Termination Date' is?
What is a microbusiness?
A Microbusiness is a business that has fewer than 10 employees or part time equivalent and an annual turnover or balance sheet not exceeding Euros 2 million – OR an annual consumption of electricity below 55,000kWh – OR an annual consumption of gas below 200,000kWh.
Consumption values, employee numbers and turnover, relate to the total across the whole of the business and all its premises.
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How do we determine who is a microbusiness?
You are a Microbusiness if you meet any one of the conditions above, thus if the gas is above 200,000kWh but the electric below 55,000kWh, you are a Microbusiness.
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What happens if you challenge us on these questions?
We will advise you that this is an Ofgem requirement and all suppliers will be doing this – if you require further information please consult the Ofgem website.
Download Ofgem factsheet
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When can I terminate my contract if I am a Microbusiness?
Microbusinesses can terminate their contract any time up to 90 days before its expiry but the contract must run its full term.
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Why are we asking you for your turnover in euros?
This is in line with the licence definition for Micro Business customers as specified by Ofgem.
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Once we determine you are a Microbusiness or non Microbusiness will this be the same for my Gas and Electricity contract?
YES. It is about you, the customer, not the individual contracted fuel.
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What if I refuse to give information relating to my business status?
We can only advise you of the Ofgem requirements and use best information available to us to deem your status as a Microbusiness.
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Can I change my Microbusiness status mid contract?
Under the terms of our Licence, Ofgem will not allow us to change your status during the live contractual period. If your business changes such that you are no longer a Microbusiness mid contract, we will pick this up during the renewal process and offer you the correct contract type at renewal.
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What if I do not know what my annual business consumption is?
We require consumption data to offer you the best price, therefore it is important that you provide this data together with the ‘supply number or mpan’ (Electric) and ‘mprn’ (Gas). However, for Gas we could use the AQ (registered Annual Quantity) as a guide or for Electricity if you are billed quarterly deem you to be a micro business. The Licence states we must use our best efforts to get the correct information thus if in doubt we will assume you are a Microbusiness
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What if we forget to ask you the questions to determine if you are a Microbusiness or get it wrong?
The information must be provided to us at point of sale, otherwise the contract will be invalid. It is unlikely that we will not request the data as we need it to offer you the best deals.
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What happens if I have signed a new contract before the 18th January 2010?
You will stay on your current contract terms until we renew the contract. At this point we will determine your status and offer you a renewal contract under the appropriate terms.
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What if I have less than 10 employees but more than 2 Million Euro Turnover / balance sheet total?
If the two questions about annual electricity or gas consumption already define you as a Microbusiness then the financial question has no significance. However, both elements of the question must be met to establish that you are a Microbusiness.
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Will the pricing structure be affected by the Microbusiness status?
Price will still be determined by the registration status and metered consumption not the consumption used to establish the Micro Business Status.
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What authority does my appointed consultant or broker have to issue a termination notice on my behalf?
None, unless the termination is provided in writing and accompanied by a letter of authority from you.
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What authority does my appointed consultant or broker have to issue notification to prevent automatic contract extension of my contract?
None, unless received prior to the ‘Relevant Date’, in writing or by email and accompanied by a letter of authority from you.
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What are the Principal Terms?
Principal Terms are a statement of the significant terms of the contract we are offering you inclusive of start date, end date, price and payment terms, that will enable you to undertake a fair comparison with any other offers you may have.
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What is a ‘Statement of Renewal Terms’ (or SoRT)?
A SoRT provides you with the date the fixed term element of your contract comes to an end, the ‘Relevant Date’ , details of what you must do to prohibit us from automatically extending your contract and what will happen if you have not got a valid contract in place with a supplier at the termination date and any rates that may be applied during the out of contract period. It also provides a postal and e-mail address to which notifications are sent.
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What is a notification?
A notification is submitted by you to prohibit us from automatically extending (rolling over) your contract. In our case it has the same relevance as termination but must be in place before the ‘Relevant Date’ and must be in writing or by e-mail to the address provided in the SoRT.
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For how long can a microbusiness contract be automatically extended (rolled over)?
Ofgem have limited automatic extension of contracts to a maximum of 12 months but we could choose a shorter period if we wish but we must make it clear to you the period of extension.
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What is the ‘Relevant Date’?
The Relevant Date is a date which is at least 30 days, and no longer than 90 days, before the date any fixed term period of a Microbusiness contract is due to end. We have decided to make the Relevant Date 30 days before the first termination date or anniversary thereof. Other suppliers may have chosen any period up to 90 days
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How do I know what my ‘Termination Date’ is?
We clearly state the Termination Date in the contract document. If you are already our customer we will remind you of the date in our renewal offer to you. If you are not our customer at present you may need to refer to your contract documentation to establish the date and the terms under which you can provide your supplier with effective termination of the contract.
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