ACS

Energy regulator Ofgem has made a range of recommendations today to deal with ‘undue discrimination’ that small businesses and domestic customers receive with their energy supply. ACS strongly welcomes the recommendations to improve the transparency of contracts, particularly an end to automatic roll over when fixed term contracts expire.

ACS Chief Executive James Lowman said: “We are delighted that Ofgem have listened to our call for action to address the serious problem of roll-over energy contracts. These are one of the worst problems local shops face when dealing with energy suppliers. This measure will go some way to protecting smaller businesses from inappropriate and high cost contracts.

“ACS receives numerous calls from retailers concerned about the way they have been treated by their energy supplier. The single biggest problem is the complex contracts that retailers are often locked into, leading to unjustified cost rises and problems with statements. These all result in cost, time and stress. Banning roll over contracts will force energy suppliers to be more open in their dealings and give retailers back more control over their energy costs and supply arrangements.

“This is a good first step, but there is a long way to go to redress the balance in favour of small business customers. We will be looking to Ofgem to deliver on its proposals and to go further to ensure that retailers can no longer be bullied or locked into contracts that are not right for them and they cannot afford. “

Ofgem will consult on the package of measures proposed, which besides the ban on roll over contracts would also include new standards of conduct and a ban on unjustified pricing schemes.

ACS will be responding to the consultation which will run until July with a view to bringing in the new measures by the Autumn.