This conference deplores the practice of rollover contracts for business utility services and calls for legislation, so that any contract rollover longer than one month should require the customer to opt in.

Proposer: Terry Taber
Seconder: David Barnes
Region: Essex

Chairman: Carol Wells-Taylor

The motion was passed

Personal votes for: 178

Personal votes against: 2

Branch votes for: 123,974

Branch votes against: 1,447

Terry Taber, Essex noted that we know many of our members feel disadvantaged at having to be constantly alert for roll over contracts. "By auto rolling over contracts, utility companies are being anti-competitive, and denying the business owner the right to look for the best deal."

"We find it wholly unacceptable that a utility company can roll over the contract and state terms and a contract for a small business without the permission of that business. We support an opt in contract approach. This would set out whether there are any changes."

"The FSB successfully campaigned for a 3 week notice period for insurance renewal. We should do the same for utility contract billing. I ask delegates to vote in favour for this motion."

Seconder, David Barnes noted that he was looking for the following things from this motion.

• A mutually agreeable contact can only be agreed by both parties, in the current situation the utility company can dictate terms, and this is unacceptable.

• Small business owners would be empowered to research the market and seek the best deal. The market would become fairer and more competitive.

• Small businesses could then focus on their own development, and be on a more level playing field with the large companies.

He asked conference vote in favour of the motion.

David Caro responded on behalf of Policy and remarked that small businesses were already under a strain in a volatile energy market. "A 2008 poll of our membership on energy supply issues, highlighted many pro areas including poor customer service, contracts lacking transparency and bad selling."

He reported that some suppliers renewed more than 90% of their contracts in that way.

By missing deadlines they are not aware small businesses are locked in for a year often at an unfair price. We are disappointed that OFGEM have not yet banned roll over contracts. This represents a jackpot for energy suppliers.

Policy urges conference to vote for this motion.

Karl Craig-West spoke against the motion. "Not all utility companies do this, but they rely on apathy. No one reads the small print. They are only doing what you allow them to get away with. Opt ins are a waste of time. We should have the same contracts for consumer and business customers. Get stuck in and save yourself some money."

Xaon Duran spoke and urged members to vote for the motion, as he was in the gas industry himself. He noted that it could be a real problem for members.

In conclusion it was suggested that to overcome the alleged apathy, an opt-in for businesses would allow them to weigh up the pros and cons of a contract. This would allow them to make their own decision and support was asked for the motion.

The policy speaker added, "The FSB is pushing for a 14 day cooling off period in the same way as consumer customers. We feel this is very important. I would also remind you that when you are negotiating your contract on the phone, the contract is binding."