New energy rules should help trade

New rules that should stop energy suppliers rolling over small business customers' contracts without them realising have been welcomed by the trade.

A probe by gas and electricity regulators Ofgem found that because small businesses, such as pubs, often arrange their energy deals over the phone, they do not always see the terms and conditions.

This means they often aren't aware of the notification windows for leaving or changing a contract.

However, Ofgem has now ruled that within 10 days of a contract being agreed, or an existing contract being extended, the customer should receive written copies of the full terms and conditions.

They should also receive a statement of renewal terms 60 to 120 days before the end of a contract with a 30 day window to apply.

John Madden, executive officer for trade group the Guild of Master Victuallers, said: "It's been a problem in the industry, and the Guild welcomes action by Ofgem to safeguard publicans who may become tied into rollover contracts without their knowledge."

Madden added that there was still some work to be done tackling contract lengths, which he said were often too long.

A spokesman for Ofgem said: "What we found was that the rollover was happening far too often to small businesses without them realising, and that had to change."

The new rules came into effect on Monday and will apply to all new contracts entered into on or after that date.

The businesses which qualify under the rules are ones which use less than 200,000 kWh of gas a year, or consume less than 55,000 kWh of electricity a year, or have fewer than 10 full-time employees and an annual turnover not exceeding €2million.

For more information visit www.ofgem.gov.uk ​