British Gas is the first supplier to announce that from the 1st September this year, they will be abolishing auto-roll-over contracts.
It seems to have come at a good time, as a lot of complaints have arisen, with contracts rolling over for a year or sometimes more. Stephen Beynon, Managing Director of British Gas Business, said: ?At British Gas, we are committed to leading the way in making the sale of energy simple and transparent for all our customers.?
It does seem British Gas are bucking up their ideas and hopefully other suppliers with follow suit.
We at Amber have encountered this problem with a number of businesses we work with; them having no idea their contracts has rolled-over until it is too late. Recently, one of these businesses we started working with, were about to be rolled over onto excessively high rates for two years and had missed their termination window. Being a very busy micro-business, they didn?t have the knowledge and time to a) know their rights and b) resolve the problem.
It does seem British Gas are bucking up their ideas and hopefully other suppliers with follow suit. E.ON spoke of doing the same last week. It comes after Ofgem new rules earlier this year; increasing the rights for micro-businesses when it comes to roll-over contracts, avoiding them being ripped off.
So with the new system hopefully it won?t be a case of 'different story same problem.'
My concern is many customers miss renewal dates because they tell us they hadn?t received the letter until it was too late or they were send to the wrong person or they never actually received a letter. So with the new system hopefully it won?t be a case of 'different story same problem.' Customers should understand their contract options and make wise decisions moving forward.
The new system, if managed fairly should take away a lot of blame from the suppliers and place more responsibility with the customer, to make sure they arrange a contract in enough time; so customers don?t end up paying expensive out-of-contract rates.
Read more about roll-over contracts here: http://www.amberenergy.net/blog/50