Guide to Switching Gas and Electric Contracts for Businesses
Ignore Your Contract at Your Peril
In the home residential market the power companies are increasing rates several times per year. Average bills have doubled in less than five years.
Although businesses receive different and sometimes lower rates the contract process requires close management.
If you forget or delay renewing your contract you will be forced to pay up to 100% more. Contractually this is fully enforced by all energy providers.
The graphic below shows how a regular business owner could see price increases of 140% or more.
Information and knowledge is key to ensuring your tariff prices stay stable each year.
No Loss of Service
You will never lose your energy supply if you terminate a contract. If you don't have a new contract in place in time you will simply be placed onto "out of contract" rates. These are obviously much higher and should be avoided but you'll never be without a supply of gas or electricity.
Don't Let Your Contract Automatically Renew
If you have received your renewal letter with new rates then don't accept it. Terminate your contract immediately and search for competitive rates now.
The renewal rates offered to you will be at least 30% higher than you need to pay. Sometimes more.
How to Switch to a New Deal
The majority of companies will not be contacted before a contract renewal unless you are deemed a micro organisation. If you don't act your prices will be raised for at least another year.
Therefore you should find the contract you have signed up to. Read the small print and follow our guide below to switch to a new deal.
- Check your contract - Ensure your are able to terminate your contract by checking the termination dates.
- Terminate your contract - If you are able to then you have to write, email or fax your letter of termination in the fixed period that you are allowed to. Then you can search for new prices for the next one to three years.
- Get Quotes - You can either get the quotes yourself or use one of our energy brokers to search the market on your behalf. We'll find you the best deals for your circumstances at no charge to your company. Once we both agree what is best for you we will handle all the paperwork and get you switched over.
You may find out that you stay with your current supplier but that will be on cheaper rates. - Sign the new deal - You'll receive your new contract either by email or the post. Simply sign it and post it back to your new supplier
- Your new deal starts - Within 4-6 weeks your contract will begin (or begin after your current one has expired).
It's really as simple as that. Credit checks are generally undertaken by the power companies and not all will take all credit risks. (One supplier will take companies with lower credit scores).
If you need any help in this process then please give us a call and we will undertake everything on your behalf.
Out of Contract and Deemed Rates
If you have recently moved premises, have a new business taking over new premises or are effectively out of contract then your unit prices will be on the most expensive tariff.
We see many organisations each week on these types of rates. Although they may sound reasonable anyone on these terms are paying at least 40% more then they should be.
The energy companies will automatically place anyone in the circumstances above on these expensive rates so it's in your interest to take action.
Either call us or enter your details on our online quoting system to reduce your unit costs today.
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