ACS Welcomes Ban on Automatic Rollover Contracts for Microbusinesses

ACS has welcomed an announcement from the Competition and Markets Authority on the future of rollover contracts for microbusinesses.

From today, suppliers will not be able to lock microbusinesses into automatic rollover contracts. In addition, measures introduced today will ensure that suppliers display prices online to make it easier for businesses to compare different tariffs.

ACS chief executive James Lowman said: “We strongly welcome the end of unfair automatic rollover contracts for thousands of microbusinesses, including many convenience stores. We have campaigned for several years for a fairer energy market for our sector, and will continue to work to ensure that convenience stores are given the same protections as domestic consumers when dealing with energy companies.”

Dermot Nolan, Ofgem Chief Executive said: “The requirement on suppliers to clearly display their prices online to microbusinesses will make it much easier for these businesses to compare prices and shop around. This is a big change in the way the market works. Microbusinesses will also be able to leave more expensive auto-rollover default tariffs without paying an exit fee, freeing them to switch to a better deal. We’ll be working closely with suppliers to make sure they give microbusinesses clear information on the prices they offer in line with the regulation. We are considering what further steps could be taken to protect and help these businesses customers engage in the market as part of our wider programme to make sure all consumers – business and domestic – get a better deal.”

A non-domestic consumer is defined as a micro business if they meet one of the following criteria:

  • Employs fewer than 10 employees (or their full time equivalent) and has an annual turnover or balance sheet no greater than €2 million, or
  • Consumes no more than 100,000 kWh of electricity per year, or
  • Consumes no more than 293,000 kWh of gas per year.

The CMA published a full report in June 2016 following a two-year investigation into the energy market. Today’s announcement marks one year after the publication of the CMA’s findings.

The announcement is available in full here:

This entry was posted by Chloe on Tue, 27/06/2017 - 11:52