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ENER-G welcomes Labour's pledge to ban business energy contract 'rollovers'

02 April 2013

Energy purchasing consultancy ENER-G Procurement has welcomed the Labour party's pledge to the Federation of Small Business to ban 'rollovers' on business energy contracts

Mark Alston, General Manager of ENER-G Procurement said: "the automatic renewal process, or energy contract 'rollovers', are one of the biggest problems for business energy customers, particularly small firms. Many companies fail to renew their contracts in time and then are charged punitive rates by suppliers and can be locked into inflated contracts."

He continued: "Through our membership of the Utilities Intermediaries Association we are campaigning for the automatic renewal process/rollover on contracts to be removed. As such, business energy contracts would work in the same way as car or house insurance, which require businesses to opt in for renewal each year. We are also campaigning for out-of-contract rates to be pitched at an appropriate level that is reflective of the market."

As a practical step in ensuring businesses don't fall victim to out of contract default rates, ENER-G Procurement has introduced a free renewal reminder service to alert businesses to the need to renew well in advance of their contract end date. Those using the service are automatically notified in advance of their contract renewal deadline, providing ample time to renew with their incumbent supplier, or give notice, research the market, compare deals and find the most competitive new contract.

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