Electricity switching made easier

Small businesses will find it easier to switch electricity suppliers after a ruling by regulator Ofgem outlawed practices currently adopted by some providers to force them to continue as customers.

Under the current system, companies agreeing to switch supplier are likely to be contacted by their existing provider and offered another contract, which is then used as a reason to object to the switchover.

But Ofgem’s ruling that as long as there is no contractual commitment to the provider the agreement to switch will take priority should ensure small businesses are not caught in a situation where they are under contract to two suppliers.

Independent electrical retail company Electricity4business described the move as “a victory for the independent supplier, but more importantly, a victory for the small and mid-sized business”.