SSE Joins Big 6 Suppliers in Phasing Out Business Energy Rollover Contracts
Nearly a month after energy giants E·ON and British Gas announced their decision to end automatic rollover contracts, SSE has now followed suit—pledging to phase them out for business customers by April 2014. British Gas, on the other hand, will stop offering auto-rollover contracts from September 1, 2013.
Rollover contracts have long been a contentious issue in the business energy market, automatically locking companies into new fixed-term agreements at inflated rates when their existing contracts expire. In some cases, businesses have faced significantly higher energy costs with little flexibility to switch providers.
Kevin Greenhorn, Director of Business Supply at SSE, emphasized the need to make energy contracts simpler for small businesses.
“Small businesses are run by busy people who focus their time on their companies,” Greenhorn stated. “They have enough deadlines to meet without us giving them another one, so we’re ending automatic contract rollovers.”
Julian Morgan, Managing Director of The Energy Advice Line, welcomed the move, calling it a win for business owners.
“Businesses need both flexibility and simplicity when managing their energy contracts. This decision by SSE and other major suppliers to end rollovers is fantastic news—it will help businesses avoid costly automatic renewals and ultimately save them money.”
Morgan also stressed the importance of proactive contract management.
“When a fixed-term contract expires, businesses are often placed on expensive out-of-contract rates, which can be significantly higher than their previous tariff. Ending rollovers is a positive step because it prevents companies from being trapped in costly, long-term agreements without their consent.”
The Energy Advice Line is the UK’s leading independent price comparison and switching service for business and household energy users. The organization actively campaigns for energy market reforms to increase competition, secure better deals for consumers, and reduce business energy costs.
For more information, visit www.energyadviceline.org.uk.