Energy regulator refines contract renewal process

The energy regulator Ofgem is to both standardise the micro-business contract renewal process and ensure there is more information available in renewal letters.
Micro-businesses are defined as companies that consume less than 293,000 kWh of gas a year; less than 100,000 kWh of electricity a year; or have fewer than ten employees and an annual turnover not exceeding £2mn. The changes, announced late-2014, will amend the gas and electricity supply licences to require suppliers to allow micro-business consumers to give notice to terminate a contract no more than 30 days before a contract ends. Suppliers will also need to provide current prices and annual consumption details on renewal letters for micro-business fixed-term contracts, and acknowledge a termination notice from a micro-business consumer within five working days of receipt.
The changes will take effect from 30 April 2015.