Avoid getting rolled over
Many businesses in the United Kingdom are still unaware of the practice of automatic contract renewal for business energy – also referred to as being rolled over – and don’t realise the implications that this can have on the businesses energy bills.
When a company is nearing the end of its current business energy contract, if they do not contact their energy supplier to terminate their current contract or renegotiate a new one, within the renewal window, their contract will automatically be renewed, or rolled over, as it is commonly known.
Being rolled over can cause a huge problem for businesses, as being rolled over on your contract can result in paying a much higher rate for business energy, whilst being prevented from shopping around for the best possible business energy deals – which in the current economic state is a vital step for business efficiency.
Energy Contract Rollover Checklist
Here is a checklist we designed to help businesses when signing a new business energy contract:
- Make sure you know when your renewal date is and how much termination notice is required.
- Provide your supplier with the correct termination notice.
- Shop around for a competitive deal
- Thoroughly read all paperwork, including terms and conditions of the contract, before agreeing to or signing a new contract.
- Ensure you understand the pricing structure of the deal, as well its terms and conditions, remember there is no cooling off period.
- Any paperwork related to the contract should be stored in a safe space so it can be referred to at a later date if required.
- Use a good energy provider, like ourselves, to help with all the paperwork and to make sure the deal is right for you.
Renewal rates are mostly higher
Most businesses fall into the trap of getting rolled over which means that energy companies take the risk of applying a higher renewal rate. If your company has a contracts department, most likely you will be saved due to negotiation, nevertheless majority of businesses in the UK are paying over the odds for Utilities due to the fact that they do not check their renewal notices.
You can renew upto 6 Months before your end date
Yes it’s true, businesses who have renewed with us earlier have made huge savings on their energy bills. This is because the rates change dramatically in the winter months therefore, it is best practice to review and shop around well before your notice letter arrives (30 days before).
Understanding fixed & variable rates
It is always best practice to make sure that you have been offered a fixed rate rather than a variable which keeps changing. A fixed rates ensures that you are paying the same amount for KWH – secure your price even further by signing up for a 24 month contract rather than a year as your rates will be secured and you will not be affected by price changes the following year.