Marketing Code of Practice for Non-Domestic Customers

_{Marketing Code of Practice for Non-Domestic Customers}

The UR Marketing Code of Practice for Non-Domestic Consumers

This Code does not apply to non-domestic electricity consumers with an MIC ≥ 70kVA.; or with annual consumption ≥150MWh (per site, or in aggregate for customers with multiple sites). This Code also does not apply to non-domestic natural gas consumers with annual consumption ≥ 732,000 KWh.

Nothing in this Code of Practice is intended to, or should be deemed to constitute an exemption from the Suppliers’ legal obligation to comply with any and all relevant legislation, statute, statutory instrument, regulation or order (or any provision thereof) or any subordinate legislation. Condition 40 of the electricity supply licence and condition 2.21 of the gas supply licence require suppliers to “comply with the Marketing Code of Practice for Domestic Customers and/or the Marketing Code of Practice for Non-Domestic Customers”. This code of practice on marketing is mandatory and enforceable under this condition and all suppliers must comply with this code.

A Glossary of Terms is contained at the back of this document.

This Section applies when a Supplier uses Third Parties.

1. For the avoidance of doubt, where a Supplier contracts with a Third Party for the provision of Sales Agents, or any other Marketing/Sales Activities (for example a Supplier contracting with a price comparison or switching website for Sales/Marketing, or any other form of Third Party Intermediary) the Supplier must ensure that the Third Party complies with all components of this Code in relation to all Sales and Marketing Activities carried out by any Third Party. Any breaches of this Code by a Third Party will be deemed to be a breach by the Supplier.

This Section applies in relation to supplier’s recruitment and training practices in relation to Sales and Marketing.

Recruitment

1. A Supplier must put in place and follow procedures which are appropriate for the selection of those who are employed or engaged as Third Parties in roles which might involve or will involve communication with Customers for the purpose of its Marketing Activities.

2. If a Sales Agent ceases to represent the Supplier, the Supplier should ensure retrieval of the Agent’s ID card.

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Training

3. A Supplier must provide or procure appropriate training for all staff or other Representatives who communicate with Customers for the purposes of the licensee’s Marketing Activities. This training should include, but not be limited to, training about the Supplier’s obligations insofar as they affect Customers including its obligations under this Code.

4. Suppliers will ensure that as a minimum the training will:

   1. take into account the knowledge and skills necessary to fulfil the role.

   2. take into account changes in the market and to products/services legislation and regulation.

   3. Insofar as possible be reflective of Consumer ethnicity and diversity.

   4. be linked to a verifiable standard of competence measurement.

   5. include defined monitoring procedures to ensure consistency of training delivery.

   6. be effective and up to date.

Should contain details such as:

7. relevant Customer terms and conditions.

8. relevant principles of Consumer protection law.

9. Customer cancellation process.

10. the procedure for handling Customer complaints.

11. the consequences of mis-selling or deliberately giving false information to a Customer or any other such breach of this Code.

This Section applies when a Supplier/Agent contacts a potential customer by visiting their home or premises.

1. If a Supplier/Agent engages in Marketing/Sales calls at a Consumer’s premises or place of residence, upon arrival, the Supplier/Agent must immediately:

   1. Produce/Display an identity card, and if appropriate, a business card, which clearly displays their full name and photograph and the name, business address, contact number of the Supplier and an expiry date for validity of the card. Thereafter, the Supplier/Agent must always show the card to the Consumer if asked. Sales Agents must not misrepresent themselves or the purpose of their visit.

   2. Give the Consumer the reason for the visit and clarify if the Consumer wishes to proceed with a presentation about the product(s) being sold. If they do not, the Supplier/Agent must leave the premises immediately and inform the Consumer they can be removed from the contact list. The Supplier/Agent must tell the Consumer that this option is available and action such removal if requested. A Supplier must be able to demonstrate that they are complying with this by keeping a ‘not for contact’ database.

   3. Provide the Customer with a copy of the Sales Checklist (for the Customer to keep) prior to the commencement of the Sales pitch; this is to help the Customer ensure that the Supplier/Agent has followed the correct procedure (See Annex A).

2. A Consumer has the right to refuse to let the Sales Agent enter their premises, and may wish to end the conversation. If a Customer indicates that the contact is unwelcome the Sales Agent must cease immediately and leave the premises.

3. Contacting non-domestic Customers - there are no specific time constraints on when non-domestic Consumers can be contacted. However Suppliers are asked to exercise reasonable judgment outside the Consumer’s normal business hours. Suppliers should be aware that business opening hours vary before contacting the non-domestic Consumer.

4. Sales Agents will:

   1. not call on any premises where there is a message prominently displayed in the form of a visible, clearly worded and unambiguous notice indicating that a Consumer does not wish to receive uninvited Doorstep Sales callers.

5. Sales Agents must at all times:

   1. be courteous and professional.

   2. not give any misleading information or make false assumptions, in particular over potential savings, or act to mislead or make omissions designed to mislead.

   3. not use high pressure tactics.

6. Sales Agents must provide the Consumer in writing or by means of an electronic display, the unit rate which the Customer will be charged for all products discussed.

   1. Tariffs with standard unit rates should be shown in the following formats:

Display tariffs exclusive of VAT on a per unit basis.

Tariff Name	Pence per unit (ex. VAT)

Any annual or quarterly standing charges (included in any tariffs which include standing charges) must be shown as an annual or quarterly amount (or such other period e.g. monthly as is applicable) inclusive and exclusive of VAT that applies to the tariff. To avoid any confusion caused by varying consumption levels Agents will be prohibited from offering any quotes for the supply of energy to Customers on an annual bill or annual cost basis. All quotations must be on the basis of unit rates only or standing/fixed charges by period with unit rates shown separately.

This approach (to standing or fixed charges) should be applied to any other fixed charge applied by the Supplier. All associated fixed costs should be presented alongside unit rates and any discounts on unit rates in the same text and font size.

Tariff Name	Pence per unit (ex. VAT)	Standing Charge for Year/Period (ex. VAT)

Furthermore tariffs with any discounts being offered off the standard rate tariff of that Supplier should be clearly shown.

Each discount must be set out clearly in pence per unit (or such other discount applicable e.g. quarterly discount amount, fixed amount discount) alongside the standard unit rate to demonstrate the actual unit rate the Customer will be charged (including any discounts) and the duration of any discount.

Note that the discounts used in the table below are for illustrative purposes:

	Standard Unit Rate	Discount A	Discount A/Discount B	Discount A/Discount B/Discount C
Pence per Unit (ex. VAT)	10.00	9.00	8.00	7.00

2. Where a Supplier is offering a dual fuel bundle, the gas and electricity tariffs should be shown separately with details provided on additional components of the tariff.

3. For differently composed or more complex tariffs where additional tariff rate elements are included in the proposal, such as tiered unit charges, Time of Day charges, fuel price pass through wholesale price pass through, seasonal tariffs etc, all the relevant required information should be clearly displayed.

1. For all Consumers where the Sales Agent had stated they can save money on energy supply, the Sales Agent must provide a comparison with the Consumer’s current unit rates (i.e. those being charged by the Consumer’s existing Supplier including any current discounts given) in writing or by means of an electronic display. The format for the comparison of these unit rates must be the same as...