Overview

This bill aims to protect micro-businesses from exploitative energy contract rollovers. It mandates a 30-day limit on automatic rollovers to new, potentially more expensive, contracts and requires an Ofgem investigation into out-of-contract energy pricing.

Description

The bill compels the Secretary of State to introduce regulations limiting energy contract rollovers for micro-businesses to a maximum of 30 days. This will involve amending Ofgem's Standard License Condition 7A (SLC7A). The 30-day limit will take effect within three months of Ofgem publishing a report on out-of-contract rates. Ofgem must complete this investigation within six months of the bill's passage. The bill defines "micro-business" based on employee numbers and annual turnover or energy consumption. "Energy contract rollover" is defined as the automatic transfer to a new fixed-term contract without explicit customer consent.

Government Spending

The bill doesn't directly specify government spending figures. However, there may be costs associated with implementing the regulations, and Ofgem's investigation will likely incur expenses. The overall impact on government spending isn't explicitly stated in the bill.

Groups Affected

The bill primarily affects:

• Micro-businesses: Will benefit from greater control and transparency over their energy contracts, potentially saving money by avoiding costly rollovers.
• Energy Suppliers: Will need to adjust their practices to comply with the 30-day limit and may face potential financial implications.
• Ofgem: Responsible for conducting the investigation and enforcing the new regulations.

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