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Energy suppliers urged to end rollover contracts - 22/07/2013

Energy suppliers are under pressure to end the rollover contracts that are offered to small businesses.

Prime Minister David Cameron has called on firms to stop using the contracts, which can result in small companies paying more than necessary for their business energy.

British Gas recently announced it will no longer offer them to enterprises and David Cameron said he hopes "other suppliers will rapidly follow suit".

The contracts can lock companies into expensive long-term details if they fail to take advantage of a cancellation window after their initial term expires and managing director of British Gas Business Stephen Beyron said the company was withdrawing them due to customer feedback.

"Increasing numbers of our small business customers have told us they don’t like the way the energy industry automatically moves them on to new contracts," he remarked.

E.ON also supports ending the contracts, but says it will not withdraw them until it is standard practice. Ofgem, the industry regulator, recently postponed the date by which providers have to include contract end dates on bills by three months.

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