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British Energy ComplianceUTILITIES · ADVISORY · ASSURANCE
Glossary

Rollover Contract

A renewal contract that takes effect automatically at the end of an initial fixed term; subject to specific notification rules under Ofgem licence conditions.

A rollover contract is the renewal arrangement that takes effect automatically at the end of an initial fixed-term non-domestic energy contract, where the customer has not signed a new contract or formally given termination notice within the supplier's required window.

Key features and protections:

  • The supplier must serve a written contract-end notification under Standard Licence Conditions — for microbusinesses, between 49 and 1 days before the renewal date.
  • Rollover terms must be fair and clearly disclosed in the original contract.
  • Microbusiness customers retain the right to terminate the rollover with 30 days' notice from any anniversary, and the right to escalate disputes to the Energy Ombudsman.

Rollover rates are commonly higher than fresh tendered rates — though usually not as high as deemed rates — and rollover terms are commonly twelve to thirty-six months in length. For most non-domestic customers, accepting a rollover without tendering against the open market produces a worse outcome than tendering. Where the supplier has not served the required notification window, the customer typically has grounds to terminate the rollover early on protection grounds.

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