Npower to stop auto-rollover energy contracts for businesses

Posted on 07 August 2013 by Priyanka Shrestha

Energy supplier npower is the latest Big Six firm to announce it will stop offering default auto-rollover contracts to new business customers from April next year.

The move, it said, is part of its wider approach to offer small businesses more choice in how they manage their energy costs, with existing customers also benefitting from it starting November next year.

Currently npower business customers who choose not to get in touch at the end of their energy contracts are rolled onto a further 12-month fixed contract.

Auto-rollovers have been deemed controversial as small firms in the past have been faced with much higher bills due to automatic renewal of their energy contracts when they expire.

The news comes after E.ON called for a ban on rollovers last month after which British Gas also confirmed it will no longer sell products to its business customers that automatically commit them to fixed-term energy contracts.

Paul Massara, RWE npower CEO said: “Our business customers have told us that they want choice and control over their energy supply. We’ve taken that feedback on board and made the decision to end default auto-rollover contracts and instead offer real choice to businesses.

“I want to make sure that customers have a positive experience and get value for money for their energy contracts. The move to end default auto-rollover contracts should be considered alongside other changes going on in the market. It’s vital that suppliers, brokers and Ofgem work together to adopt a measured and controlled approach to implementing this across the market.”

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Article source: http://www.energylivenews.com/2013/08/07/npower-to-stop-auto-rollover-energy-contracts-for-businesses/