OFGEM Offers Support to Small Businesses

Following a probe by OFGEM (the energy industriescontracts. All suppliers will have the same terminations
regulator) new rules have been introduced for energypolicy.o All business electricity and business gas
suppliers of business electricity and business gas tosuppliers will write to customers at least 3 months
micro business.before the end of the contract advising of future rates
OFGEM has classed micros business as companiesand what to do if they wish to leave the supplier.
with less than 10 employees and a turn over of lessSmall businesses have historically struggled with
than 2.3 million pounds per year.knowing when to terminate their energy contracts.
The new rules which come into effect from the 18thWhich has led to many businesses having to deal with
January 2010 are below:o Highlight the key terms andbeing rolled on to higher energy contracts for 2 or 3
conditions available to small businesses at the time ofyears? The new rules have given business a much
sale, and provide full terms and conditions in writing.o Alllarger window of when they are able to terminate their
door to door sales and verbal contracts to be followedsupply agreement. The new rules of when a
by full written terms and conditions.o Energy supplierstermination can be forwarded to a supplier are
will only be able to automatically roll over businessbetween when the contract is signed up to 3 months
electricity and gas customer contracts for a maximumbefore the contract has ended.
of 12 monthso All small business will have the option onOFGEM will audit all business electricity and business
the contract to opt out of a contract roll over in thegas suppliers to insure they are following the rules.
future.o Small business will no longer have difficultOFGEM has warned energy suppliers that they will
terms and conditions regarding terminating supplyface heavy fines if they do not follow the rules.