ACS angered by Ofgem policy
Ofgem had been looking at ways to stop small and medium companies from being tied in to restrictive and expensice rollover contracts if they were unable to find new suppliers within a short window at the end of existing contracts.
In a letter to SME representatives, Ofgem has now said it will allow rollovers for up to a year.
“Rolling contracts frequently lock small and medium businesses into damaging terms of supply for long periods. Instead of this softening of proposals we call for more robust action, including extending the remit of this proposal to all SME businesses, not just micro businesses,” says ACS chief executive James Lowman.
“We want businesses to be given more flexibility and encouragement to switch energy companies if they find themselves in this situation. If energy companies have competitive deals and good practice then there will be no problem,” Lowman adds. “If Ofgem cannot take decisive action then this important matter should be referred to the Competition Commission.”
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