During this economic period of austerity cuts, there are a number of challenges facing businesses of all sizes in finding ways of cutting their costs in tough economic times.
A lot of businesses are generally too busy to know or understand what agreements they have with their utility and telecom contracts, or when they expire.
Utility companies were happy to let them agreements roll over into the following year. So this can prove very expensive for small businesses who could be placed in a decent bargaining position to negotiate with all energy suppliers for a better deal. So it is welcomed that NPower has followed British Gas in listening to small businesses and ending the automatic of rollover energy contracts.
Following the announcement that NPower will stop offering automatic rollover energy contracts by default, The Blackpool based Federation of Small Businesses (FSB) calls on the remaining big six providers to end this unfair practice.
FSB research suggests one in four small firms had been rolled over without their
knowledge and an overwhelming 78 per cent of respondents said they would support the abolition of rollovers. The FSB has been campaigning on the issue of automatic contract rollovers for over five years and earlier this year worked with Caroline Lucas MP to table a Private Members Bill which would have ended automatic contract rollovers.
However, Many small businesses in the UK are still at risk because EDF Energy, Scottish Power and SSE continue to maintain this practice.
The FSB has been campaigning on the issue of rollover energy contracts for over five years and calls on the remaining energy companies to follow the lead of their competitors and end this unfair practice once and for all.