Don’t Get Rolled Over Into A New Energy Contract!

Don’t Get Rolled Over!

Energy contract rollover is an expensive trap that is all too easy to fall into! How can you avoid it?

You need to cancel your business energy contract within a set period of time when it is due to end, or your energy supplier will automatically sign you up to a new contract. This is what is called a ‘rollover’ contract.

Rollover might seem unfair. It isn’t against the law! But there are some rules about how rollovers should operate to provide some protection if your business is classified as a micro-business. If you fit into this group, approximately 60 days (but less than 120 days) before your contract is due to expire, your energy supplier must send you a letter telling you the details of your renewal offer and the contract you will be rolled on to if you fail to act on your renewal. Also, you can’t be rolled over to a new contract that lasts longer than 12 months. After receiving your renewal letter, you have a defined period during which you need to tell your energy supplier that you don’t want to accept the tariff you were offered.

A micro-business is defined as 1) using less than 293,000 kWh of gas each year, or 2) using under 100,000 kWh of electricity each year, or 3) less than 10 employees, and 4) has an annual turnover / balance sheet of €2m.
Rollover is a questionable business practice. It can contribute to a passive acceptance as it’s all too easy to let your contract roll over, even though it’s an expensive option.

The big 6 business energy providers have ended, or at least changed, their rollover practices in the past few years, and so have created freedom of movement in the market place. However, many of the smaller providers still operate at least a form of rollover contracts. If your supplier still operates a rollover contract and your business is a micro-business, you can stop being automatically rolled over by providing a notice of termination in line with their contract. It doesn’t matter if you send your notice of termination by email, fax, or post, still send a written copy to your supplier by recorded delivery to be certain that they have received your notice.

As soon as you’ve terminated in accordance with your contract, you need to be very diligent about finding a new contract in plenty of time (all new suppliers will need 30 days notice before starting a contract). Or, if your supplier allows termination at any point before a final date then it’s a good idea to send your termination notice in almost as soon as you start your contract.

At we can secure a new contract anything up to 6 months before your contract end date just to make sure everything is organised well before the termination date.

Unfortunately, if you have just been rolled over it’s usually too late to act in most cases. But please do not become complacent as can work with your supplier to try and make this as painless as possible, and never allow it to happen in the future.

So give us a call at (01524 259 200) and we will do all the hard work for you. Thanks, Jon – Fresh Juice At A Better Price.

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