Establishment of consumer redress scheme9

1

For the purpose of section 19(10)(d) of the Act, Part 2 of the Consumers, Estate Agents and Redress Act 2007 applies to end users, subject to the following modifications.

2

Part 2 of that Act is to be read as if—

a

a reference to a regulated provider is a reference to an intermediary;

b

a reference to a relevant consumer is a reference to a microbusiness end user or a domestic end user;

c

any reference to a regulator or a relevant regulator is omitted;

d

the Secretary of State has made an order under section 47(1)(b) of that Act requiring all intermediaries to be members of a redress scheme administered by the Secretary of State (or a person appointed by the Secretary of State) and designated by the Secretary of State as an appropriate redress scheme in relation to them;

e

the order provides that the redress scheme is for the investigation of complaints made against an intermediary by or on behalf of a person in that person’s capacity as a microbusiness end user or a domestic end user of the intermediary (“consumer complaints”);

f

the redress scheme is a scheme under which consumer complaints may be made to, and investigated and determined by, the Energy Ombudsman;

g

the Energy Ombudsman may provide a microbusiness end user or a domestic end user with the following types of redress—

i

providing an apology or explanation;

ii

paying compensation; and

iii

taking such other action in the interests of the end user as the Energy Ombudsman may specify;

h

section 52 of that Act provides for enforcement by civil sanctions under Schedule 4 to the Metering and Billing Regulations (as modified by regulation 10 of these Regulations) of the requirement for an intermediary to be a member of the redress scheme;

i

the order comes into force on the day on which these Regulations come into force.

3

In this regulation—

  • “domestic end user”, in relation to an intermediary, means a person who purchases heating or hot water for their own end consumption for domestic purposes from the intermediary; and

  • “microbusiness end user” means an end user which employs fewer than 10 employees and has an annual turnover or balance sheet no greater than £2 million.