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Reaction to Ofgem's proposals
Jonathan Elliott, CEO of price comparison service Make It Cheaper, reacts to the proposals set out by Ofgem in their recently-published RMR Update
Jonathan Elliott, CEO of price comparison service Make It Cheaper, reacts to the proposals set out by Ofgem in their recently-published RMR Update:
"Ofgem's backing of 'Contract End Dates' and notice periods on bills is a big win for small businesses. It makes the whole renewal process a lot more transparent and means far fewer will fall into the controversial 'rollover trap'. In a survey of 1,250 businesses we conducted earlier this year, 96% told us it would be easier to manage their energy accounts if Contract End Dates appeared on their bills. Knowing when your contract comes to an end - and therefore avoiding pricey rollover rates - basically means the difference between paying 15p and 10p a unit for electricity. For any business to take a third off its energy bill and put it straight back on the bottom line is a welcome shot in the arm.
However, Ofgem's proposals won't become compulsory until at least this time next year so we will continue with our campaign to get suppliers to commit to these changes voluntarily. Business customers of CNG and E.ON, for example, are already benefiting from seeing their Contract End Dates printed on their bills and we expect to see others suppliers following suit long before they are required to do so by law."
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About Make It Cheaper
Established in 2007 and based in Central London with 110 staff, Make It Cheaper is the number one destination for businesses to get a better deal on their utilities and other services. It receives more enquiries and arrange more new contracts than any other business price comparison service. These include the business customers of major domestic price comparison services with whom Make It Cheaper has partnerships, as well as many nationwide trade associations and charity membership organisations. Acting on behalf of these customers with total impartiality and free-of-charge, Make It Cheaper offers year-on-year savings across a range of products including: business energy, telecoms, insurance and merchant services (chip & pin). By switching suppliers or helping to renegotiate deals with existing ones, it will typically save over 30% of costs - as well as a considerable amount of time that its customers can then spend on running their businesses. Make It Cheaper is currently ranked 39th in the Sunday Times Fast Track 100 and has a 2012 Net Promoter Score of 75%.