THE Federation of Small Businesses (FSB) has called on Scottish Power to end unpopular rollover contracts.
With five of the big six energy suppliers now committed to banning automatic rollover contracts for small businesses,the FSB is now calling on Scottish Power to join British Gas, npower, EDF, SSE and EON to end this “unfair” practice.
Eon will stop offering the contracts for new and existing customers from April 1 next year, with customers who fail to take another fixed tariff being moved onto the firm’s cheapest ‘evergreen’ tariff, with no exit fee.
The energy company is also extending the contract renewal window for small businesses from 60 days, so consumers can choose a new tariff up to 30 days before their existing deal comes to an end.
Ted Salmon, FSB North East regional chairman, said: “We are pleased that another energy supplier has decided to end automatic contract rollovers for small businesses and calls on Scottish Power, as the one remaining supplier not to end this practice, to do so.
“The FSB has been working with the Prime Minister’s energy group to highlight this issue and we are pleased that Eon has joined the other four suppliers and taken action as a result.