moneysupermarket.com comments on Utilita becoming the first supplier to impose a 12 month contract

Commenting on Utilita becoming the first supplier to impose a 12 month contract, Scott Byrom, utilities expert at price comparison website moneysupermarket.com, said:

"The first 'broadband-like' contract hits the energy market.

Less than a month after Ofgem axes the 28-day rule, Utilita becomes the first energy provider to impose a long-term contract tying customers down for 12 months.

"Although there appears to be no penalty charge for early termination, Utilita could refuse a customer's request to change suppliers should a new, cheaper product become available.

"The fear is rival energy suppliers will be tempted to mirror this move, thereby opening the floodgates for providers to impose long-term contracts.

I urge them not to as this will be detrimental to the consumer who is likely to see healthy and aggressive competition in the marketplace disappear, replaced by lock-ins and suppliers sitting pretty on long-term deals.

"I advise consumers to shop around for the best energy tariff while they can still swap after just 28 days." moneysupermarket.com is making a stand to help people ditch their expensive power companies and get the cheapest energy deal by offering £30 cash-back to all customers swapping to a dual fuel tariff through its service.

Those not going for a dual fuel tariff but changing a provider or tariff will benefit from a single £17.50 payment1.

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