Microbusiness

What it is

Ofgem treats you as a microbusiness if you meet any one of these tests:

• fewer than 10 employees (or full-time equivalents) and turnover or balance sheet total of no more than €2 million, or
• you use less than 100,000 kWh of electricity a year, or
• you use less than 293,000 kWh of gas a year.

You can be a microbusiness for one fuel and not the other.

Where you will see it

Suppliers decide your status when you sign up, and it shapes your contract documents: Principal Terms, renewal notices and the complaints information. If you think your supplier has you wrongly classified, ask and send your evidence.

Why it matters

Microbusinesses get protections that larger customers do not, including:

• no termination fee when out of contract, and suppliers cannot require notice except on evergreen contracts (up to 30 days);
• a limit of 12 months on back billing;
• broker costs shown in Principal Terms and a requirement that suppliers only use brokers in a dispute scheme;
• access to the Energy Ombudsman. Small businesses (a wider group, with fewer than 50 employees or higher usage limits) also have access to the Ombudsman.

Example

A café has 7 staff and a turnover of £600,000, so it meets the first test. A warehouse with 30 staff and bigger turnover but only 80,000 kWh of electricity a year still qualifies on the usage test, for electricity.

Check both fuels separately. A site can be micro for electricity and not for gas.

Related terms

See what is a microbusiness for energy, extra protections and who can use the Ombudsman.