Has your new energy contract been rolled over from your previous one? If so, you could be paying around 61% more – or £1,600 – than your average energy bill as a result of it.
New statistics from Energy Forecaster showed almost a third (1.5 million) of UK firms have had their energy contracts rolled over.
A rollover is when a supplier automatically signs a customer up to a new energy contract when their previous one ends. This could happen without the consent of the customer, committing them to a contract for a 12-month period.
According to the report, the average annual electricity bill for a business energy contract last month was £2,600 whereas the average for a business which had been rolled over by their supplier was £4,200.
It also showed 68% of businesses felt rollovers are unfair and 85% believed the Government should intervene and force energy suppliers to be more transparent by printing contract end dates on bills. More than half of the firms also said the Government should ban rollover contracts altogether.
Ashton Berkhauer, Deputy Chair at Energy Forecaster said: “81% of those we spoke to think the Government should enable businesses to change energy supplier at the end of the agreed contract term without termination windows, but until this becomes a reality, businesses need to start actively engaging in the business energy market.
“By simply taking note of the date their contract ends and the notice they need to give, they can ensure they’re not stung by a costly rollover. Businesses are not in control of the fluctuating energy market but they can certainly have some control over their bills by taking the time to research and switch suppliers.”
However, suppliers are now obligated to send its business customers a statement of renewal terms and conditions around 60 days prior to the firms contract renewal date.