Energy supplier E.ON brought an end to business energy contracts with automatic “rollovers” yesterday.
As of 31 March, all its new and existing customers won’t be offered contracts which roll onto a pricier tariff automatically when it runs out.
Automatic contract rollovers have in the past few years been widespread through the industry but controversy over higher tariffs last year forced a rethink among suppliers. Regulator Ofgem has shied away from banning rollovers outright.
E.ON said research among its small business customers showed 86% would prefer to negotiate a new contract or move to a more flexible agreement as opposed to automatically getting a new long-term fixed price deal.
Small to medium sized businesses will instead be moved on to E.ON’s cheapest variable rate tariff, with a 30-day notice period and no exit fee.
Anthony Ainsworth, Director of Business Energy at E.ON said: “We believe that is the fairest way of working with small businesses, providing greater consistency and transparency across pricing and contracts and giving them the confidence that we are listening to their feedback.”
The firm’s new notice period doesn’t leave as much room to manoeuvre as recently suggested by Ofgem, of 90 days.