Jonathan Elliott, managing director of Make It Cheaper, said the fixed and variable term rates that customers will be transferred on to are likely to be “far higher” than the current rollover lock-in prices.
“If suppliers are doing this because they have their customers’ best interests at heart then every bill should clearly state what the contract is, when it ends and what will happen afterwards,” he said. “My concern is that licensees who got caught before will still get caught out, but will now pay even higher rates, unless suppliers put contractual information on bills.”
Sideways step
Multiple operator Richard Coltart, who runs his own consulting business, agreed the move had been “dressed up as great” when it is a “sideways step not a big leap forward”.
Ofgem is currently reviewing whether to impose a ban on roll-over contracts for businesses. It said the price businesses will pay for energy if they default to deemed or out of contract rates at the end of fixed term deals can be higher than they would pay under a contract, but it would allow customers the freedom to switch supplier more easily than if they had been rolled over.
Contract end dates
E.ON, which is due to terminate such contracts from April 2014, said it has been publishing contract end dates on bills since earlier this year and has set up an independent business energy code of practice.
Scottish Power said existing business customers will receive contract renewals 60 days prior to the contract expiry date via recorded delivery.