npower commits to offering small business customers more choice
nower has today announced that from April 2014 it will stop offering default auto-rollover contracts to new business customers as part of a wider approach to offer small businesses more choice in how they manage their energy costs. Existing customers will benefit from November 2014, to allow time for wider changes in the market to be implemented.
npower will adopt a new approach to selling and renewing business contracts, including the options of fixed and variable term contracts as well as products with a greater focus on energy efficiency.
Business customers who choose not to get in touch with npower at the point of renewal are currently rolled on to a fixed term contract. From April 2014, npower will no longer sell these default auto-rollover contracts to new customers and from November 2014 existing customers will no longer default onto a fixed term contract and will instead be offered a choice of fixed and variable term options.
npower currently goes beyond regulatory requirements and only rolls over small businesses for a maximum of 12 months. The supplier therefore believes that 100% of its small business customers will be moved off contracts that they have automatically rolled on to sooner than British Gas' total SME customer base.
Paul Massara, RWE npower CEO, said: "Our business customers have told us that they want choice and control over their energy supply. We've taken that feedback on board, and made the decision to end default auto-rollover contracts and instead offer real choice to businesses."
"What's important is that businesses are offered the right solution to meet their individual needs. Some appreciate the budget certainty that a fixed-term contract offers, others will want more flexibility from a variable rate contract. We also know businesses want more support with energy saving, so we'll continue to offer products to continue to help them to cut down energy waste and save money."
"I want to make sure that customers have a positive experience and get value for money for their energy contracts. The move to end default auto-rollover contracts should be considered alongside other changes going on in the market. It's vital that suppliers, brokers and Ofgem work together to adopt a measured and controlled approach to implementing this across the market. Although npower is one of the first suppliers to make this commitment, our announcement today allows sufficient time for the introduction of a new, regulated code of practice for energy brokers which is needed to prevent confusion in the marketplace."
nower has today announced that from April 2014 it will stop offering default auto-rollover contracts to new business customers as part of a wider approach to offer small businesses more choice in how they manage their energy costs. Existing customers will benefit from November 2014, to allow time for wider changes in the market to be implemented.
npower will adopt a new approach to selling and renewing business contracts, including the options of fixed and variable term contracts as well as products with a greater focus on energy efficiency.
Business customers who choose not to get in touch with npower at the point of renewal are currently rolled on to a fixed term contract. From April 2014, npower will no longer sell these default auto-rollover contracts to new customers and from November 2014 existing customers will no longer default onto a fixed term contract and will instead be offered a choice of fixed and variable term options.
npower currently goes beyond regulatory requirements and only rolls over small businesses for a maximum of 12 months. The supplier therefore believes that 100% of its small business customers will be moved off contracts that they have automatically rolled on to sooner than British Gas' total SME customer base.
Paul Massara, RWE npower CEO, said: "Our business customers have told us that they want choice and control over their energy supply. We've taken that feedback on board, and made the decision to end default auto-rollover contracts and instead offer real choice to businesses."
"What's important is that businesses are offered the right solution to meet their individual needs. Some appreciate the budget certainty that a fixed-term contract offers, others will want more flexibility from a variable rate contract. We also know businesses want more support with energy saving, so we'll continue to offer products to continue to help them to cut down energy waste and save money."
"I want to make sure that customers have a positive experience and get value for money for their energy contracts. The move to end default auto-rollover contracts should be considered alongside other changes going on in the market. It's vital that suppliers, brokers and Ofgem work together to adopt a measured and controlled approach to implementing this across the market. Although npower is one of the first suppliers to make this commitment, our announcement today allows sufficient time for the introduction of a new, regulated code of practice for energy brokers which is needed to prevent confusion in the marketplace."
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