ACS

Research by ACS (the Association of Convenience Stores) has revealed that one in five businesses receive inadequate notice that their energy contract is coming to an end. One in ten businesses have received back dated bills and one in four businesses have been initially offered unfavourable renewal terms on their energy contract.

The research, conducted by an independent market research company, comes just a week after Ofgem watered down its recommendation to outlaw rolling contracts for the smallest businesses.

ACS Chief Executive James Lowman said: “This research suggests that thousands of small retail businesses are suffering at the hands of these tactics. We need Ofgem to revert to its original decision to stop rolling contracts.”

Ofgem has recommended a range of new measures to improve small businesses’ experiences with energy companies, including requiring them to give thirty working days notice so that businesses can renegotiate contracts, and giving information in clear and plain English. But their recommendation to end to rolling contracts was replaced last week with an announcement that they will allow contracts to roll over for up to one year.

James Lowman continued: “ACS is pleased to see Ofgem moving in the right direction, but they must go further. As well as an end to rolling contracts, we want to see Ofgem change their definition of qualifying businesses to include all small business, not just micro business.”

Separate to their announcement last week, Ofgem has called on energy companies to improve their handling of customer complaints.

Mr Lowman continued, “Ofgem needs to stop tactics like threatening phone calls and the premature use of bailiffs, and to change to the all-too-common practices of poor co-operation and a lack of record keeping. Ofgem need to get serious about stopping this behaviour from energy companies.”