E.ON's research with its customers revealed that they would prefer to negotiate a new fixed price contract or be placed onto a variable rate product at the end of their existing term, rather than the current industry practice of being rolled onto a new fixed term contract.
Therefore, following the success of its call for an industry-wide end to auto-rollover contracts, E.ON has today announced a whole package of measures for the benefit of its SME customers, including an end to auto-rollover contracts for all SME customers from 1 April 2014. New fixed-term products without an auto-rollover option will be launched for both existing and new customers on 1 April 2014.
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E.ON already has provisions in its contracts allowing customers to opt out of auto-rollover. Between now and April, E.ON will therefore be reminding and encouraging its existing SME customers on fixed term contracts to opt out of being automatically rolled over.
Customers who choose not to take a new fixed term contract once their existing contract expires will be moved onto E.ON's cheapest variable rate tariff, which includes a 30 day notice period and no exit fee.
E.ON will also publish for the benefit of its customers, all variable SME tariff rates on its website from 1 October 2013, allowing its customers to easily compare the rates available to them.
In addition, customers have told E.ON they don't like having to choose a contract as long as 90 days ahead of their existing contract end date. Therefore, E.ON is responding to its customers' wishes and from 1 April 2014 extending its contract renewal window, allowing customers to negotiate a new deal up to 30 days ahead of the end of their current contract. This move will make the process of negotiating new contracts far clearer and simpler.
Anthony Ainsworth, Sales and Marketing Director of E.ON UK, said: "We know from our own business customer panel and from independent research that the majority of small businesses just don't like the automatic rollover process and find it too complex.
"So, we're making it clear for our customers; at the end of your contract you can either renegotiate a new deal or we will move you on to our cheapest variable rate product. We'd really encourage customers to give us a call so we can help them find what's best for them."
(CD/IT)
