Over recent months consumers and businesses have been made only too aware that not only are rates on the increase via energy providers their profits are too! Why at such a critical time in our economy do providers feel it necessary to increase these prices without any real reasoning whilst reaping the financial rewards in their profits... one thing we can guarantee, they won’t need to turn their heating down in the winter.
Ten Tips:
- Make sure you know when your contract end date is. If you don’t know this, and it’s quite common that most businesses don’t, then the contract will automatically roll over into 1, 2 or worst case scenario 3 year deal on above standard market pricing.
- Be aware of the small print. It is quite often the case that you only have a small window of time to give notice. If this is missed then you are locked in!
- Upon receipt of your renewal letter give the supplier notice that you don’t accept the charges. This doesn’t mean that the supplier will withdraw those rates it just allows you to test the market without being committed to your incumbent provider.
- Don’t fall for the ‘for one day only’ line that incumbent providers have been know to come out with when they receive your notice letter. This is generally a tactic employed that they hope will lead you to take a rash decision. It may well be competitive but there is no rush.
- Consult energy experts/brokers. They will be able to thoroughly check the market at the time. Prices fluctuate on a regular basis so what is available today may not be tomorrow. The experts may have preferred arrangements with certain suppliers that allow them to offer preferential rates at a specific time.
- Consider longer contracts. We previously advised clients to go for 12 month agreements, however due to the instability over recent months in energy prices, we are now advising clients to look at at least 24 month or even 36 month contracts. If the price is only marginally higher on the longer contract then go for that.
- If you happy are with the offer from either the brokers or the supplier don’t take too long to accept otherwise it could be retracted.
- Credit rating is becoming a serious issue for businesses now as energy providers are becoming very strict in respect of their scoring criteria. Ensure that your accounts and rating are accurate otherwise some main stream providers will simply refuse to offer terms.
- Look at reducing your energy internally. Make sure that, where possible, all machines and equipment are switched off overnight. It's an obvious one, but doesn't happen often enough. A single computer and monitor left on 24 hours a day can cost a business over £50 a year.
- Finally, when you have found the right deal for you and the contact has been signed then try and remember all of the above as the renewal date will be here before you know it!
