The Association of Convenience Stores (ACS) has reiterated its call for an outright ban on damaging rollover energy contracts.
In its submission to the Non Domestic Automatic Rollovers consultation, ACS said the current rules surrounding rollover contracts did not work, and often led to retailers being saddled with rates that were significantly higher than new contract rates.
Some suppliers, including Eon and British Gas, have already moved to stop rollover contracts there are currently no plans to introduce a ban for all suppliers.
While still welcome, the proposals contained in Ofgem’s consultation, which closed on April 11, did not go far enough towards improving protections for small businesses, ACS chief executive James Lowman said.
“Current rules on rollovers allow suppliers to take advantage of their customers by putting them on extortionate rates for their energy consumption. We do not believe that this is indicative of a fair energy market, and are calling on Ofgem to abolish rollover contracts,” Lowman added.
Ofgem’s proposals on rollover contracts include:
- Shortening the maximum termination notice period that a business customer has to give to a supplier to 30 days (previously between 30-90 days, depending on supplier).
- New rules for suppliers to include their current and renewal prices and their annual consumption on renewal letters.
- Requiring suppliers to acknowledge receipt of a termination notice.
The proposals are set to be implemented this autumn.