The Federation of Small Businesses (FSB) is concerned with the practice by energy companies of rolling over contracts warning they are damaging small and micro firms. Often small firms are locked into un-negotiated and more expensive terms for a full 12 months.
FSB research has found that one in four small firms had been rolled over without their knowledge and an overwhelming 78 per cent of respondents said they would support the abolition of rollovers. This can’t be fair, says the FSB.
Commenting on the FSB response to an Ofgem call for evidence on rollover energy contracts, Gordon Millward, Regional Chairman, Federation of Small Businesses, said:
“The FSB has found that many small businesses are not aware of the need to renegotiate energy contracts up to three months before they expire, and some of our members have found themselves stuck in an additional 12 months with their provider without the option of finding a better deal elsewhere.
“The smallest firms need to be protected from these unfair practices. The Government and Ofgem must address this to give small firms a better deal at the hands of the big six energy companies.”