Overview

This bill aims to protect micro-businesses from unfair energy contract rollovers. It mandates a 30-day limit on automatic rollovers to more expensive tariffs after a fixed-term contract ends and requires an investigation into out-of-contract pricing practices.

Description

The bill requires the Secretary of State to create regulations limiting energy contract rollovers for micro-businesses to a maximum of 30 days. This will involve amending Ofgem's Standard License Condition 7A. The bill defines "micro-businesses" as those with fewer than 10 employees and an annual turnover or balance sheet not exceeding €2 million, or those using less than 200,000 kWh of gas or 55,000 kWh of electricity annually.

A key provision necessitates Ofgem to conduct and publish a report within six months of the bill's passage, investigating out-of-contract energy rates. The 30-day rollover limit will then take effect within three months of the report's publication. The bill applies to England, Wales, Scotland, and Northern Ireland.

Government Spending

The bill doesn't directly specify government spending figures. The costs will likely be associated with Ofgem's investigation and the regulatory changes implemented. No specific financial figures are provided in the bill text.

Groups Affected

• Micro-businesses: Will benefit from greater protection against unexpectedly high energy costs after their fixed-term contracts expire.
• Energy Suppliers: Will be required to change their practices regarding contract rollovers and may face increased administrative costs.
• Ofgem: Will be responsible for conducting the investigation and amending regulations, incurring associated costs and workloads.

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