The Rollover trap – How to avoid Automatic Contract Renewals costing you money

It has become standard practice now for all energy companies to simply roll over energy contracts when they come to an end into a new fixed term contract. This is what is termed a `rollover’.

The new contract rate may be much higher than old one, and you’ll be stuck with it for at least a year. To get out of the new contract you can pay the penalties outlined, but these can be very expensive and not an adequate solution.

Although a `rollover’ may seem unfair, it isn’t illegal, and it doesn’t break any rules. To prevent this happening to you, you need know when your contract is due to end; serve notice to terminate the contract within the period specified (even if your intention is to renew it); renegotiate a new tariff or search for a better one.