Micro Businesses and Energy Contract Rollover Bill


Watch live coverage as MPs debate the Micro Businesses and Energy Contract Rollover Bill at second reading on 25 January 2013.

This is a private members' bill, introduced by Green Party MP Caroline Lucas.

The bill would require the energy and climate change secretary to make provision to limit energy contract rollover for micro businesses to 30 days, rather than the current limit of a year.

When a business's energy supply contract is due to end, the firm needs to cancel it within a set time period or the energy supplier can automatically sign it up to a new contract.

Micro businesses are those which have fewer than 10 employees.

Current regulations set out by regulator Ofgem include requiring suppliers to send details of a new fixed-term offer at least 60 days before the end of a contract, and a 30-day window for a small business to sign up to a deal if it wants or to arrange to switch supplier.

A firm that fails to respond may only be put on a new rollover contract that lasts for a maximum of a year, but Caroline Lucas's bill proposes to limit this to a maximum of 30 days.

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