ACS

ACS has reacted angrily to the weakening of Ofgem’s recommendation to prohibit rollover energy contracts. In a letter to SME representatives Ofgem have revealed that they will allow energy companies to participate in contract rolling for up to a year.

ACS Chief Executive James Lowman said: “Rolling contracts which frequently lock small and medium businesses into damaging terms of supply for long periods. Instead of this softening of proposals we call for more robust action, including extending the remit of this proposal to all SME businesses, not just micro businesses.

“Energy companies argue that stopping rolling contracts will lead to ‘out of contract’ customers receiving bad terms of supply; but in this malfunctioning market place customers are already facing price hikes and poor terms.

“We want businesses to be given more flexibility and encouragement to switch energy companies if they find themselves in this situation. If energy companies have competitive deals and good practice then there will be no problem.

“If Ofgem cannot take decisive action then this important matter should be referred to the Competition Commission.”

ACS fed into the recent consultation that Ofgem ran on its recommendations and will be responding to this latest consultation which is open for 12 days.