Monday, 17 February 2014

Bye bye to ban on business energy rollovers

Ofgem has shied away from banning auto-rollovers, the controversial practice of automatically putting businesses onto the same energy tariff or higher when their contract ends, according to new plans announced today.

Debate over auto-rollovers has raged amongst suppliers with some backing a ban while others were less convinced.

In the end many suppliers such as ScottishPower plumped for scrapping auto-rollovers – or near enough – before Ofgem forced them to.

Instead Ofgem said today it is changing the number of days’ notice a business can give to switch supplier. The notice period will be dropped to 30 days rather than around the 30-90 days they are currently.

The regulator said “streamlining” this across suppliers will “end confusion” for businesses on when they have tell their supplier if they want to switch.

At the end of the contract, suppliers will also have to provide businesses with information on how much energy they have used in the last year.

In the renewal price they will have to put a comparison between their current rate and new rates they are offering.

via Bye bye to ban on business energy rollovers | Energy Live News.

Bye bye to ban on business energy rollovers

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