Energy contracts for Business Customers
The following information is published on the Ofgem website concerning the risks of having your current contract rolled over, which may result in you paying a lot more for the period of your next contract.
Ofgem website www.ofgem.gov.uk. The ofgem website contained a lot of good advice for businesses.
Know the dates of your contract
Making sure you know when your contract begins and ends is vital. In particular you should note down when the notice period is for deciding if you want to switch or stay with you supplier. If you do not have this information to hand contact your supplier.
Note the difference between the renewal period and the notice period on a fixed-term contract
Make sure you know exactly when the window is for notifying your supplier that you wish to sign a new deal, or that you want you want to switch at the end of the contract.
When you receive your renewal letter make sure you fully understand the terms and conditions. It will set out what will happen if you don’t contact your supplier to sign up to their offer, negotiate a new deal, or tell them you want to switch.
If you are a micro business* your supplier could roll over your contract for a maximum of one year
It could also increase the rates or change the terms.
If your company is larger than a micro business you will need to check what your contract says about renewals – as your supplier may be able to roll over your contract for longer than one year.
It is never too early to think about what you want to do when your current contract ends
If your contract does run out, your current supplier will still provide your energy until you switch but you may be subject to a deemed or out of contract rate which could be much higher than your current contract.
This applies to micro and larger businesses so you will need to check the terms and conditions of your contract to see how this applies to you.
The Message is clear – don’t forget your contract renewal dates!
Bridge Future Solutions can help you
1. Remind you, and
2. Give you a FREE NO OBLIGATION QUOTATION
*A Micro business is one that has fewer than ten employees (or their full time equivalent) and a turnover of less than two million Euros