Company registration number 14029367 (England and Wales)
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
CONTENTS
Page
Balance sheet
3
Notes to the financial statements
4 - 7
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents his annual report and financial statements for the Year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of independent dispute resolution.
Director
The director who held office during the Year and up to the date of signature of the financial statements was as follows:
Dr M M Amos
(Resigned 1 February 2023)
Mr B J Landers
(Resigned 1 February 2023)
Mr S A Palmer
Lord T F Clement-Jones CBE
(Resigned 1 February 2023)
Mrs J S Davenport
(Resigned 1 February 2023)
Mr P W Hewitt
(Resigned 1 February 2023)
Mrs O Sodeinde
(Resigned 1 February 2023)
Mr M J Vickers
(Resigned 28 November 2023)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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On behalf of the board
Mr S A Palmer
Director
12 August 2024
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 3 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
4
13,562,266
141,593
Cash at bank and in hand
3,462,277
17,024,543
141,593
Creditors: amounts falling due within one year
5
(10,150,419)
(141,593)
Net current assets
6,874,124
Reserves
Income and expenditure account
6,874,124
Members' funds
6,874,124
The director of the company has elected not to include a copy of the income and expenditure account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
Mr S A Palmer
Director
Company registration number 14029367 (England and Wales)
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information
Energy Ombudsman Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 3300 Daresbury Park, Daresbury, Warrington, WA4 4HS.
1.1
Reporting period
The current financial period covers the period from 1 January 2023 to 31 December 2023 however, the prior financial period covered short period from 6 April 2022 to 31 December 2022 therefore they are are not comparable.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Income and expenditure
Turnover represents subscription and case fee income of the service and any costs recovered in setting up new ombudsman services.
Case fee income is recognised dependent on the progress of the case and the stage of completion at the period end.
Expenses are included in the financial statements as they become receivable or due.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Taxation
The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Bad debt provision
The bad debt provision is based on an estimate of how much is ultimately recoverable from debtors.
3
Employees
The average monthly number of persons (including directors) employed by the company during the Year was:
2023
2022
Number
Number
Total
268
167
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,400,900
Other debtors
8,817,098
141,593
Prepayments and accrued income
344,268
13,562,266
141,593
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
49
Taxation and social security
1,215,175
103,013
Other creditors
8,935,244
38,531
10,150,419
141,593
ENERGY OMBUDSMAN LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Nicola Mason MA(Cantab) FCA DChA
Statutory Auditor:
MHA
8
Parent company
The ultimate parent company is The Trust Alliance Group Limited, a company incorporated in England and Wales.
9
Contingent Liability
The Alternative Dispute Resolution (ADR) Services provided by Energy Ombudsman Limited have been treated as a non-trading activity and therefore not subject to corporation tax. This is on the basis that:-
There is a statutory duty on certain companies to give their customers access to appropriate ADR.
A statutory authority has given approval to Energy Ombudsman Limited to provide the ADR service
Energy Ombudsman Limited, independence and structure require approval by Oftel and Ofgem.
Energy Ombudsman Limited charges for its services on the basis of covering costs.
HMRC has challenged the status of the activities for tax purposes and has raised additional tax assessments. HMRC have completed an review of their position and upheld the assessments. Independent advice has been obtained by Energy Ombudsman Limited in support of the original treatment of the income as not subject to tax. The case will now go to tribunal. If HMRC’s position were upheld, the liability to HMRC would be approximately £1.7million comprising tax of £1.6m and interest and penalties of £0.1m. As the assessments are disputed by the company, this potential liability has not been recognised in the financial statements.