The TPI ADR Scheme is a new initiative by Ofgem, the UK energy regulator, to improve the standards and transparency of third-party intermediaries (TPIs) that offer energy services to microbusinesses.
The TPI ADR Scheme requires that energy suppliers only work with TPIs registered with a qualifying alternative dispute resolution (ADR) scheme, which Ombudsman Services independently run. The ADR scheme provides a free and impartial service for resolving disputes between microbusinesses and TPIs such as Utility Bidder (www.utilitybidder.co.uk).
If you are a micro business looking for the best deals on your energy bills, you may benefit from using a TPI to compare prices and negotiate contracts with suppliers. However, you should also be aware of the potential pitfalls and risks involved in dealing with TPIs, and how to avoid them by following the best practices of the TPI ADR Scheme:
1. Choose a registered TPI
The first and most important step is to choose a TPI registered with the TPI ADR Scheme. This means that they have agreed to follow a code of conduct and service standards and are accountable for their actions. You should also check their reviews and ratings on platforms like Trustpilot to see what other customers have said about their experience with them.
2. Compare quotes from different TPIs
Comparing quotes from different TPIs can help you save money, reduce your carbon footprint, and improve customer service. Here are some tips on how to compare quotes from different TPIs:
- Compare the unit rates and standing charges – The unit rate is the price you pay for each unit of energy you use, measured in kilowatt-hours (kWh). The standing charge is a fixed amount you pay daily, regardless of how much energy you use. You should look for the lowest unit rate and standing charge that suit your consumption patterns.
- Compare the contract length and terms – The contract length is the duration of your agreement with the supplier, which can range from one month to five years. The contract terms are the conditions and clauses that govern your relationship with the supplier, such as cancellation fees, exit fees, renewal options, etc. You should look for the contract length and terms that offer flexibility and security.
- Compare the green credentials – The green credentials are the environmental impact of the energy you use, measured by the percentage of renewable sources in the energy mix. The higher the percentage, the lower the carbon emissions. You should look for green credentials that match your sustainability goals and values.
3. Read the contract carefully before signing
Once you have chosen a quote that suits your business, you must sign a contract with the TPI and the supplier. This contract will outline the terms and conditions of your energy supply and your rights and obligations as a customer.
You should read this contract carefully before signing it and ensure you understand everything it entails. You should also check if there are any cancellation fees, exit fees, or penalties for switching suppliers before the end of your contract term. If you have any questions or doubts about the contract, you should ask the TPI or the supplier for clarification before signing.
4. Keep records of your communications with the TPI
It is important to keep records of all your communications with the TPI, such as emails, phone calls, letters, or messages. This will help you with disputes or complaints about their service or conduct. You should also keep copies of your contract, bills, invoices, meter readings, and any other documents related to your energy supply. These records will serve as evidence if you need to escalate your complaint to the ADR provider or Ofgem.
6. Contact the TPI first if you have a problem
If you have a problem with your energy supply or your TPI’s service, contact them first and try to resolve it directly. Most TPIs have a dedicated customer service team that can handle your queries and complaints promptly and professionally. You should explain your problem clearly and politely and ask them for a solution or compensation. You should also record your communication and follow up if they do not respond or act on your request.
Some of the benefits of contacting the TPI first are:
- You may have a contract or agreement with the TPI that specifies how they will handle your complaints and what remedies they will offer.
- The TPI may have a better understanding of your energy needs and preferences than your energy supplier and can offer you more suitable solutions or alternatives.
- The TPI may have a closer relationship with your energy supplier and may be able to negotiate on your behalf or escalate your complaint if needed.
- The TPI may have access to more information and data about your energy consumption and billing, which may help them to identify and resolve the problem faster.
7. Escalate your complaint to the ADR provider if necessary
If you are not satisfied with the response or resolution from the TPI, or if they do not respond within eight weeks, you can escalate your complaint to the ADR provider they are registered with. The ADR provider will investigate your complaint impartially and request evidence to find a fair outcome. They will inform Ofgem of any misconduct or breaches by the TPI.
To escalate your complaint to the ADR provider, you must fill in a complaint form and send it to them by post, email, or online. You should include all the relevant information and evidence to support your complaint, such as copies of correspondence, bills, contracts, etc. You should also state what you want the TPI to do to resolve your complaint, such as an apology, a refund, compensation, etc.
Conclusion
For microbusinesses looking for the best deals on energy services, traversing the world of third-party intermediaries (TPIs) in the energy market can be a valuable strategy. Ofgem’s TPI ADR Scheme is a safeguard to ensure accountability, transparency, and fair dispute resolution in these interactions. Microbusinesses can avoid common pitfalls and make informed decisions by following the best practices.
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