Help Ofgem change rollover contracts

By sending Ofgem this letter, you can make your voice heard about encouraging transparent communication from business energy suppliers.

Any business that's been caught out by an energy company's 'Rollover Trap' will know how frustrating and expensive it can be. However, simple things like having contract end dates clearly printed on each bill and renewal letters sent by Recorded Delivery would have a massive impact on the number of businesses falling into the trap.

If (like 94% of businesses we asked) you'd like to see these measures put into practice then now's the time to act. Ofgem, the energy industry regulator, is urging businesses to comment on its proposals to make energy contracts fair and easy to understand.

All you need to do to have your voice heard AND help them change the rules is copy & paste the following text into an email and send it to rmr@ofgem.gov.uk.

Dear Ofgem

Re: Retail Market Review (non-domestic proposals), Chapter 2/Q6

As a business energy user I would like Ofgem to ensure that:

  1. Each bill I receive from my energy company clearly highlights my contract end date and termination procedure.
  2. Each renewal letter I receive from my energy company is sent by Recorded Delivery and shows the difference between the current rates being charged and the proposed renewal rates in £s and %. I'd also like it to explain how and when to serve notice if I am to prevent my business from being automatically rolled into a new contract on the renewal rates.

Yours faithfully

(Your Name)

(Business Name)

NB Unless marked 'confidential', all responses will be published in Ofgem's library and on www.ofgem.gov.uk.

- ENDS -

'Rollover Trap' Explained

Businesses typically pay fixed price tariffs for one, two or three years and it is not unusual to see prices going up by 50% as they come up for renewal at the end of their contract. However a typical renewal window for a business energy contract will be between 120-30 days BEFORE the contract end date, and it is usually ONLY during this period that you can apply to switch or look to negotiate a better deal. If a business fails to act before the end of the renewal window, its contract will automatically 'rollover' on to renewal rates for at least another 12 months. In other words… cheaper prices are only available to those who know about their renewal window, are proactive about shopping around DURING it and then manage to avoid being rolled - by sending a termination letter to their supplier. Make It Cheaper offers free and impartial help with this - even if it's just to remind you each time your renewal window opens.

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