Rollover contracts tend to sneak up on a person. The result is high energy rates that your business will have to succumb to for a period of 12 months (at the very least). To avoid this frustration, it’s imperative that you brush up on the laws around this type of contract. This guide will talk you through what rollover agreements are, how they work, and how you can avoid them.
If you fail to cancel or renew your energy contract before it’s due to finish, then it will automatically default to a “rollover” agreement. This type of contract is typically fixed to a 12-month term and is near impossible to cancel. Another downside to a rollover plan is that the rates are usually higher than the original deal you had signed up for.
Legally speaking, energy suppliers are within their rights to automatically sign you up to a new contract if you fail to send in a timely cancellation notice. This may seem unfair, but it is mentioned in a contract’s fine print. Essentially, it’s up to you, the consumer, to ensure that you do not become tied to a rollover energy contract that leaves you without options and a bill that’s hard to swallow.
Rollover contracts aren’t ideal for individuals and businesses who want to save money. While it’s vital that your supply isn’t cut off, it’s not fair that suppliers can tie you to an inflated rate.
To ensure that you don’t find yourself stuck with shockingly high energy bills in the future, we suggest that you run through the following checklist before you sign on the dotted line:
If you have already been rolled over, then there is, unfortunately, nothing you can do to terminate the new contract. You will just have to make peace with the costly lesson and avoid being subject to such terms in the future.
While you wait for the term period of your rollover contract to lapse, we suggest that you use the opportunity to compare business energy deals. This way, you’ll be ready to switch to a new contract as soon as you can, and you can choose an energy plan that features more affordable rates.
Rollover contracts can come across as unfair, but they are not against the law. There are, however, some laws around energy rollover contracts that have been specially implemented to protect micro businesses. For example:
If you are subscribing to an energy contract for the first time or if you feel like it’s time to switch to an energy provider that has better rates, then we encourage you to shop around before accepting the first “good” deal that you stumble on.
To help you compare business energy deals, we have provided consumers with a free online quote comparison tool. Simply fill in your postcode and we will supply you with the rates and options of energy suppliers who service your area.