Louise Horscroft 5 min read

A guide to business energy objections

Switching business energy suppliers can help businesses save on costs and improve efficiency, but occasionally the process encounters obstacles.

Sometimes, your current energy supplier can block your switch by objecting to your new supplier, creating a hurdle that needs to be addressed before the process can continue.

This guide to business energy objections covers:

Definition of an objection
The common reasons for objections
The objection process
How to resolve objections
The impact it has on the switching process

Definition of an objection

An energy objection is a formal process in which an existing business energy supplier prevents the transfer of a customer’s meter point to a new supplier.

This action is based on specific grounds outlined in energy supply licenses, such as outstanding debts, contractual obligations, or errors in the business energy contract.

Objections help business energy suppliers manage risks, ensuring the switching process complies with their existing customer agreements.

The common reasons for objections

Energy suppliers can raise objections to a switch for various reasons. These typically fall into the following categories:

Outstanding debt: The customer has overdue business electricity bills or business gas bills with their current supplier.
Fixed-term contracts: The customer is in a fixed-term agreement that has expired.
Erroneous transfers: An error is detected in the switching request, such as incorrect business electricity meter or commercial gas meter details.
Customer request: The customer explicitly asks their current supplier to block the switch because they have not authorised it.
Related meter points (electricity only): The property has multiple associated MPANs (e.g., for dual supplies or multiple devices) that must all be switched together, and not all are included in the switch request.

The objection process

The objection process outlines the steps when a customer’s current energy supplier blocks switching to a new supplier.

Here’s how it typically works:

Customer signs contract: The customer agrees to a business energy contract with their new supplier, initiating the switching process.
Switch request submission: The new supplier submits a registration request to transfer the customer’s account.
Notification to current supplier: The current supplier is notified of the pending switch through the centralised registration system (CRS).
Objection review window: The current supplier reviews the customer’s account to determine if an objection is necessary. The current supplier has a limited time to object to a business energy switch (7 working days for gas and 6 working days for electricity).
Objection raised: If grounds exist, the current supplier objects within the objection review window.
Notification to the customer and new supplier: The current supplier or business energy broker informs the customer of the objection, explaining the reason and steps to resolve it. The new supplier has also been notified that the switch has been blocked through the CRS.
Resolution: The customer can resolve the issue by working with the current supplier, such as settling outstanding debts or agreeing to pay termination fees for fixed-term business energy contracts. Once resolved, the current supplier lifts the objection, and the switch can proceed.
Re-submission: The new supplier re-submits the registration request, which proceeds without further objections.

How to resolve objections

Resolving objections involves addressing the issues raised by your current supplier to allow your energy switch to proceed.

Ofgem regulations on objections are designed to ensure a fair process and protect businesses from unfair practices, such as unnecessary delays or unwarranted objections.

Steps to resolve objections

Resolving supplier objections doesn’t have to be complicated. By following a few clear steps, you can address the issue efficiently and get your switch back on track.

Understand the objection: Your current supplier is required to notify you of the reason for the objection. Common reasons include outstanding debts or active fixed-term contracts.
Take corrective action: For example, clearing any unpaid balances to remove debt-related objections or agreeing to early termination fees with your current supplier.
Communicate with suppliers: Inform your supplier of the action taken and request that they remove their objection.

Protection against unfair practices

Ofgem regulates the objection process to protect businesses from unfair treatment. Suppliers must comply with strict guidelines, including:

Only raising objections for valid reasons as outlined in their supply license.
Clearly communicating the reason for objections and how to resolve them.

Unresolved disputes

If you believe an objection is unfair or unresolved after contacting your supplier:

File a complaint: Raise the issue with your supplier’s complaints team. Suppliers are obligated to address complaints promptly.
Contact the energy ombudsman: For unresolved disputes, the Energy Ombudsman provides a free, independent service for small business energy customers to investigate and mediate business energy supplier complaints. Their decision is binding on the supplier.

The impact of objections on the business energy switching process

Supplier objections can significantly affect the switching process, potentially delaying or preventing a transition to a new tariff.

Key impacts include:

Delays in switching: If the current supplier objects, the switching process cannot proceed until the issue is resolved, extending the overall switch timeline to your new energy supplier.
Customer frustration: Unresolved objections can lead to dissatisfaction and additional administrative burdens for businesses or individuals.
Extended contract obligations: Objections can result in businesses remaining tied to an unfavourable agreement for longer, leading to higher business electricity prices or business gas prices.
Resolution requirements: To clear an objection, customers may need to settle debts, resolve contract disputes, or provide additional documentation, adding complexity to the process.

Understanding and promptly addressing the reasons for supplier objections can help minimise their impact and ensure a smoother transition to your new energy supplier.