No more Rolled-over contracts
Ofgem, the electricity Regulator, has specified that all suppliers must stop the practice of rolling over contracts onto higher prices, if not contacted by the customer; they must comply by April 2014.
This is a significant development for business energy users, because coming to the end of a fixed-term contract without dealing with it, usually means automatic renewal for at least a year, on prices that are often as much as 30% higher.
British Gas was the first of the major suppliers to stop this very underhand but lucrative practice, and now others are following suit.
Please do not be fooled into thinking that by ignoring the renewal, and the supplier not rolling the contract, that you will not be hit with higher prices.
All that will happen is that your electricity account will go onto “Out of Contract” rates at very high prices - if yours is a quarterly account, you will not know until months later.
Clearer contract information
The other helpful thing that Ofgem have done recently is to get suppliers to show the contract status on your electricity bill.
Over the next few months, have a good look at your electricity bill and provided you have good eyesight or a magnifying glass, you should be able to spot information regarding your contract. Some suppliers have already placed this information onto their bill, others will follow and it should be in place by March next year.
Need help? Look no further ...
The Forum and Utility Options can help take the headache out of searching for the best price for your utilities. As the service claims from the Suppliers, there is no cost to you for this member benefit. There’s never a bad time to get in touch – because even if your contract still has some time to run, they will prompt you to deal with it at the right time. For further information on the service click here