The Role of the Dispute Resolution Ombudsman for Business Customers

The Dispute Resolution Ombudsman Resolves Disputes Between Energy Customers and Suppliers When Internal Complaints Processes Have Failed. Its Powers Are Real — But Its Remit Stops at the Micro-Business Threshold.

The Dispute Resolution Ombudsman (formerly the Energy Ombudsman) is an independent, impartial dispute resolution service for energy complaints in Great Britain. It is free to use for eligible customers, legally binding on energy companies, and has the power to direct suppliers to take corrective action including providing redress payments, correcting billing errors, and changing supply arrangements.

For business energy customers, the key qualification is the micro-business threshold. Since December 2024, the Dispute Resolution Ombudsman’s remit covers businesses with fewer than 50 employees — extended from the previous micro-business threshold of fewer than 10 employees. Larger business customers cannot access the Ombudsman for energy disputes and must pursue complaints through other means.

Who Can Use the Dispute Resolution Ombudsman

All domestic (residential) customers can refer complaints to the DRO after completing the supplier’s internal complaints process.

Micro-business customers can also use the Ombudsman. The micro-business definition for DRO purposes is: a business with fewer than 10 full-time equivalent employees, or one with an annual electricity consumption of 100,000 kWh or less, or an annual gas consumption of 293,000 kWh or less. Meeting any one of these criteria qualifies the business for Ombudsman access.

Larger business customers — those exceeding the micro-business thresholds — cannot refer complaints to the DRO. Unresolved disputes with suppliers must be pursued through the supplier’s own escalation process, and ultimately through the civil courts if no resolution is achieved.

This limitation is a significant protection gap for medium and larger commercial energy customers. A business spending £200,000 per year on energy with 25 employees has no access to the Ombudsman if their supplier bills them incorrectly and refuses to correct it — they must pursue the matter through formal legal channels.

The Complaints Process: Step by Step

The DRO can only be engaged after the internal complaints process with the supplier has been exhausted or has reached deadlock. The required sequence is:

Step 1 — Raise a formal complaint with the supplier. Contact the supplier in writing (email is sufficient) stating that you are making a formal complaint, describing the issue clearly, and specifying the outcome you are seeking. Most suppliers have a dedicated complaints team. Keep a record of all correspondence with dates.

Step 2 — Await the supplier’s response. Suppliers are required to acknowledge complaints promptly and to investigate and respond within a defined timeframe — typically 8 weeks for a substantive response. If the supplier provides a “deadlock letter” — formally stating that they have investigated and cannot resolve the complaint to your satisfaction — this also triggers Ombudsman eligibility.

Step 3 — Refer to the Dispute Resolution Ombudsman. If the supplier has not resolved the complaint within 8 weeks, or has issued a deadlock letter, you can refer the complaint to the Ombudsman. The referral is made online through the Ombudsman’s website. There is no fee for the customer.

Step 4 — Ombudsman investigation. The Ombudsman reviews the complaint, obtains the supplier’s position, and may request further information from both parties. The investigation is independent — the Ombudsman is not an advocate for either side.

Step 5 — Decision and remedies. If the Ombudsman finds in the customer’s favour, it can direct the supplier to: apologise, correct billing errors and issue credit notes, make redress payments (financial compensation for distress and inconvenience), and take specific actions to resolve the underlying issue. Ombudsman decisions are binding on the supplier; the customer retains the right to reject the decision and pursue other remedies if unsatisfied.

Common Business Energy Complaints the Ombudsman Handles

• Billing errors: VAT or CCL charged at incorrect rates, unit rates applied incorrectly after contract changes, standing charge errors, estimated billing that significantly deviates from actual consumption
• Contract disputes: Auto-renewal disputes where the customer believes adequate notice was not provided, disputes about the contracted rate applied, disagreements about early termination charges
• Switching problems: Delays in supplier switch completion, dual billing during transfer periods, incorrect meter reads at transfer date
• Out-of-contract rate disputes: Where the customer argues that the OOC rate applied exceeded the supplier’s own published schedule, or that adequate notification was not provided before OOC rates were applied
• Supplier failure transitions: Disputes arising from SoLR transfers where the customer believes the new supplier applied charges incorrectly following the transfer

Complaints Against Energy Brokers

The DRO’s primary remit covers disputes between customers and licensed energy suppliers — not disputes with brokers directly. However, the Ombudsman can address complaints about broker conduct where the supplier was responsible for overseeing the broker relationship.

For direct complaints about broker conduct — undisclosed commission, misrepresentation of the market, inappropriate contract recommendations — the primary route is the broker’s own complaints process, followed by escalation to the Ofgem TPI Code of Practice dispute resolution process for brokers who are registered under the code.

What the Ombudsman Cannot Do

• It cannot intervene in disputes involving larger business customers (above micro-business thresholds)
• It cannot set aside contractually valid terms — if you signed a contract with a specific term, the Ombudsman cannot make the supplier apply different terms simply because you find them unfavourable
• It cannot award damages for commercial losses arising from energy supply issues — redress is limited to direct financial correction of billing errors and a modest compensation payment for distress
• It cannot act as a regulator — it resolves individual disputes but does not have the authority to fine suppliers or change industry-wide practices (that is Ofgem’s role)

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