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Helping small businesses get the most out of the energy market

To help small businesses to engage in the energy market, Ofgem’s (http://www.ofgem.gov.uk ) introduced new rules that apply to only directly to micro-businesses

Micro-business is defined as a company which:

·         consumes less than 200,000 kWh of gas a year, or

·         consumes less than 55,000 kWh of electricity a year, or

·         has fewer than ten employees (or their full-time equivalent) and annual turnover or annual balance sheet total not exceeding €2m

The New Rules

Ofgen has introduced new rules on provision of the contract terms and conditions, and on contract roll-over.

Suppliers now must send customers a statement of renewal terms and details with new rates between 60-120 days prior your contract ends.

This will apply if

·         -you take no action and the contract is rolled over, and

·         -you prevent their contract from being rolled over

Customers who wish to avoid being automatically rolled over for a further fixed term period can now prevent this from happening by writing to their supplier at any point from when they agreed a fixed term contract until the end of the notification window. However, if a customer wishes to terminate or cancel the contract they must do so in accordance with the terms of the contract.

If you purchase your energy through an energy broker, you should still benefit from the new rules, as it is the ultimate responsibility of your supplier that all the necessary contract information is provided to you and to ensure that the rules on the roll-over of contracts are followed correctly.

Further information on matters affecting micro-businesses can be found on www.consumerfocus.org.uk