Energy supplier npower has binned energy contracts which automatically renew for small businesses.
From November its existing customers on fixed contracts won’t be rolled over onto a new tariff.
The firm also announced new price plans today which it claims marks “a completely new way” of contracting for energy supply.
Phil Scholes, SME Sales & Marketing Director at npower said: “We have made our energy contracts as flexible as possible for SMEs.
“From today, businesses can choose from two different plans based on what is important to their business, whether that is the ability to budget long-term or the flexibility to change contracts at short notice. We will be introducing a third plan later this year.”
Today’s two new tariffs are “fixed” and “variable”, the first setting a unit price for one, two or three years, the latter allowing firms to review their rates every quarter to “ensure they reflect market conditions”.
The supplier said the variable option was proving to be very popular with landlords, new start-ups and seasonal businesses in trials.
A final, “flexible” plan is for customers reaching the end of the fixed tariff who don’t want to commit to a long-term fixed rate for a year.