It is important for any business, particularly micro businesses, to be aware of the terms of any contracts they enter into and, in particular, the contract renewal date.
If the contract is not terminated or renegotiated before this date, then some contracts will automatically continue or roll over to prevent micro businesses from going onto higher rates.
Rollover Contracts: a factsheet for micro business customers (PDF 1MB).
Gas and electricity suppliers know that energy bills going back months or even years, known as back-bills, can be a concern for customers.
Both the customer and the supplier have responsibilities with regards to billing. But where a microbusiness customer has taken all reasonable steps to avoid the need for back-billing, suppliers have committed to limit any back-bill to three years for electricity bills, and to four to five years for a gas bill. This is a minimum standard and in many cases suppliers have voluntarily gone beyond this to offer greater protection to their micro business customers.
From 1 November 2018, new standard licence conditions for suppliers of microbusinesses comes into effect that limits any back-bill to 12 months for both electricity and gas bills. The voluntary standards will, therefore, be closed as of 1 November 2018.