Ofgem urged to ban energy contract rollovers

Small businesses have reacted angrily to Ofgem plans to soften its stance on contract rollovers.  Originally OFGEM was prepared to ban energy contracts rollovers.


Proposals for a ban, following OFGEMS’s price probe last year had been welcomed by small businesses which are unhappy at the regulators revised proposals.  They mean energy suppliers could automatically rollover fixed-term contracts for up to a year.


Business groups said Ofgem’s revised proposals would stifle competition and that they were concerned about the regulator limiting tougher controls to firms with ten or fewer employees.


Recent research from the Association of Convenience Stores (ACS) indicated that one in five businesses received inadequate notice that their energy contracts were coming to an end.


Ofgem is expected to formally consult shortly on all the licence changes following the price probe.