FSB concern over energy contract rollovers for small businesses

Tuesday 29 January 2013

Virtualisation

The Federation of Small Businesses (FSB) is supporting the micro business and energy contract rollover bill, which received its second reading in the House of Commons on Friday January 25th.

The proposed legislation is geared at combating the practice of by energy firms rolling over contracts and locking small firms into un-negotiated and often more expensive terms for a full 12 months.

If passed it would limit this period to 30 days - helping to deliver a fairer energy market for micro businesses.

According to research conducted by the FSB, 82 per cent of small and medium-sized businesses are in favour of such measures.

A quarter of those surveyed said they had been rolled over onto a new contractual term without their knowledge.

John Walker, national chairman of the FSB, said micro businesses are often unaware of the terms relating to contract rollovers.

"The FSB believes this is being used to unfairly lock micro businesses into unfair contracts," he stated.

"The smallest firms need much more protection from these unfair practices."

Mr Walker claimed this is something the government and energy regulator Ofgem must tackle to give small firms a better deal at the hands of the Big Six energy companies.

Posted by Sarah Parish