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FSB adds support to ‘anti-rollover’ Bill

The Federation of Small Businesses (FSB) has given its backing to a Bill which proposes a 30 day limit on rollover energy contracts.

Rollover is when your energy supplier automatically signs you up to a new contract when your existing one ends. If you haven’t written to them to tell them that you don’t want your contract to be rolled over, they are perfectly within their rights to sign you up to a new 12-month contract.

Almost a third of businesses say that their energy contract has been rolled over at some point, and as a result they could be stuck paying electricity prices that are 60% higher than the market rate for 12 months, according to our Q3 Business Energy Barometer survey.

Business Juice have both been calling for a total ban on rollover for some time and our CEO is working with the government and a cross industry group to bring about this change.

The Bill, which has been tabled by Green Party MP Caroline Lucas, wants to build on this move by limiting rollover contracts to a maximum of 30 days for micro businesses.

John Walker, National Chairman, Federation of Small Businesses, said:

“Micro businesses – those with fewer than 10 employees – are often unaware of the terms relating to contract rollovers. The FSB believes this is being used to unfairly lock micro businesses into unfair contracts.

“The smallest firms need much more protection from these unfair practices. It is something that government and Ofgem must tackle to give small firms a better deal at the hands of the big six energy companies. We will be looking for a firm assurance from the minister on Friday that he will direct Ofgem to tackle the issue of micro business rollovers once and for all.”

Caroline Lucas added:

“With the rising cost of energy now a make or break issue for many small firms, it’s time to hold the energy giants to account for the damaging practice of contract rollovers that delivers a bad deal for micro businesses.

Visit our dedicated supplier pages to understand your supplier’s policy on rollover and termination.


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