ACS

New rules designed to protect small businesses when dealing with energy suppliers come into force on January 18. The new safeguards, created by Ofgem the energy regulator, were approved after an extensive probe into the conduct of energy suppliers to small businesses.

These new protections will only apply to micro businesses, and will also only cover contracts entered into after 18 January 2010. Microbusinesses are defined primarily by energy consumption, although number of employees and turnover can also be determining factors. The rules ensure that customers will be provided with more information and will be less likely to fall into costly rolling contracts.

The safeguards are as follows:
 

• Ban automatically rolling over an energy contract for more than 12 months
• State that customers must be allowed to give notice to cancel their contract whenever they wish 
• Customers must also be reminded 30 days before the start of their notice period that their contract will soon expire. This enables them to enter into a new contract 
• One a contract is agreed, clients must be sent full terms and conditions within ten working days 
• A statement of agreement and information regarding the notice period must be sent in writing

ACS is continuing to lobby Ofgem and Parliament, calling for these safeguards to be extended to all SMEs.

For further information on these changes please refer to the ACS advice guides.