Npower to stop auto-rollover business contracts

The supplier described the move as “part of a wider approach to offer small businesses more choice in how they manage their energy costs”.

Npower will bring in the same measures for existing customers from November 2014, to allow time for wider changes in the market to be implemented, the company said.

It will now adopt a new approach to selling and renewing business contracts, including the options of fixed and variable term contracts as well as products with a greater focus on energy efficiency.

Paul Massara, RWE Npower chief executive, said: “Our business customers have told us that they want choice and control over their energy supply. We’ve taken that feedback on board, and made the decision to end default auto-rollover contracts and instead offer real choice to businesses.”

“What’s important is that businesses are offered the right solution to meet their individual needs. Some appreciate the budget certainty that a fixed-term contract offers, others will want more flexibility from a variable rate contract.”

Currently business customers who choose not to contact Npower at the point of renewal are currently rolled on to a fixed term contract.

The supplier said it currently goes beyond regulatory requirements and only rolls over small businesses for a maximum of 12 months.

Last month British Gas became the first energy supplier to commit to stop selling auto-rollover contracts to business customers.

The energy supplier has stated that from 1 September it will write to its business customers at the end of their fixed term deals offering them a choice of new fixed term tariffs.

The auto-rollover process will have ended for all of British Gas’ customers by June 2014 following changes to the company’s billing system.