The Prime Minister has welcomed the commitment of three of the Big Six firms to stop auto-rollover energy contracts for UK businesses.
SSE was the latest supplier to announce plans to scrap energy contracts where businesses are automatically rolled over into new ones when their current deal ends, following in the footsteps of British Gas and npower.
Auto-rollovers have in the past locked small firms into paying above-market rates for their gas and electricity.
The news follows the Government’s call for energy companies to limit back-billing to, at most, one year, end unclear contract terms and roll-overs and publish more detailed tariff information to help small businesses compare without the need for a broker.
In a letter to the three companies, David Cameron said: “I want to commend you for ending the practice of ‘auto-rollovers’… British SMEs are a very important part of the UK’s economic engine and the Government has launched an ambitious set of initiatives to help such firms further, making it easier to set up a business, obtain funding, hire new employees and export goods and service overseas.
“Dealing with energy costs as well as the time it takes for new firms to be connected have been high on the agenda of SMEs and so have been high on my list of issues to tackle.”
The other three Big Six firms E.ON, EDF Energy and Scottish Power have yet to follow suit to stop automatic roll-overs.