Scottish Power has become the last of the big six energy suppliers to act on auto-rollover contracts for small businesses.
The supplier will stop offering the contracts for new small business customers from April 2014 and to existing customers later that year.
Customers who come to the end of their existing fixed price contract will now be moved onto a variable tariff with no exit fees.
The Glasgow-based supplier will also reduce the period for back billing business customers to 12 months, down from 24 months, from January 2014.
Scottish Power has also committed to ensure customers receive contract renewals 60 days prior to their contract expiry date via recorded delivery, as well as giving customers the chance to negotiate a new deal up to 30 days before their existing one expires.
Neil Clitheroe chief executive of retail and generation at Scottish Power said: “We recently engaged with hundreds of our small business customers to understand what’s important to them and what they would like to see from their energy supplier.