Ofgem outlines plan to reduce small firms' energy bills

20/04/2009 11:40

Small businesses in the UK could save money on their energy bills under new proposals outlined by Ofgem.

The energy watchdog observed that micro-businesses (firms employing ten employees or less or using under 200,000 kWh of gas/55,000 kWh of energy a year) often find the roll-over of long-term contracts difficult to manage and pay for.

It has proposed a number of measures to protect small businesses, including the ban of automatic roll-over of contracts and the provision of full details of contract terms and conditions each time small firms sign up.

Alistair Buchanan, chief executive of Ofgem, said: "We anticipate that the package of measures we want to introduce will improve business customers' ability to engage effectively in the market."

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