Are you thinking about energy contracts and when to renew them? Or are you paying too much for your business energy? Maybe your energy supplier isn’t proving the service you thought they would. Looks like you’re in search of a new business energy contract.
This may be a stressful time, with lots to think about and questions to ask. Business energy contracts can be more complicated than the domestic energy market and that is why business owners need to understand how contract renewals work.
This guide will give you all the information needed for business contract renewals and ways you can avoid making mistakes.
How Do I End An Energy Contract?
So, you want to end your business energy contract and think it might be easy?
Well, you’d be mistaken.
The process of ending or cancelling a business energy contract is a lot trickier than domestic deals. If you aren’t aware of the process, you may incur fees.
Commercial electricity and contracts are set for a fixed length of time, which typically will automatically renew towards the end of the contract. Once a contract is signed, your business will be tied into the deal. This deal will be kept until either it expires, or you speak to the supplier to tell them you’re not renewing.
When the contract is coming towards the completion date, you’ll need to contact your provider to let them know you’ll be leaving when it expires. It is important to note that contact must be made within your agreed notice period, which can be found on your contract.
It is your responsibility to inform the supplier of your wish to leave to avoid automatic renewal. So, keep track of deadlines to avoid any fees and nasty shocks.
When Can I Leave My Energy Contract Without Fees?
We all want to avoid fees, right?
Saving money is fun. But without knowing, you could easily walk into troublesome fines.
To escape any penalty fees when leaving your energy supplier, remember to speak to your provider during the window of the notice period, found in your contract. You’ll stay with your current supplier until the end of the notice period, but during this time you can pre-arrange a contract with a new provider.
If you’re looking for a new energy supplier, get a quote from Niccolo Gas today and find out how much money you can save, along with receiving the best customer service in the industry.
How Much Notice Do I Need To Give My Energy Supplier?
The length of time varies, dependant on the terms and conditions of your contract. Different providers have different time scales, most asking for as little as 28 days’ notice.
You may be thinking, surely there are more transparent companies out there?
Well, at Niccolo Gas, customers are given their renewal terms and prices two months before the end of the contract, so customers know as early as possible.
What If I Don’t Renew My Energy Contract In Time?
Ever heard of ‘out of contract rates’? They aren’t very welcoming.
Ofgem requires energy suppliers to notify you of your contract end date at least 42 days before its expiry. However, most companies don’t renew or contact in time, leading to the nightmare of “out of contract” rates.
Once a commercial energy contract expires and there have been no new agreements made, you’ll be placed on a default charge tariff, usually a huge price increase to what you normally pay.
Sucks right?
Especially when it is so easy to avoid this happening! It just shows how important renewing your energy contract early is.
It also shows why helpful energy companies like Niccolo Gas give you plenty of time to sort a new agreement out.
4 Mistakes To Avoid When Renewing Business Energy Contracts
| Just looking for whatever is cheapest. | Like everyone, you want the cheapest rates possible for your energy contract. I get that. But you should know that there is more to your energy bills than just a rate and a standing charge. Asking for the cheapest rate won’t guarantee a cheaper contract. When making a comparison, be sure to look at the overall contract value, not just the rate. You may end up with a lower rate, but paying more. |
| Thinking that it is too early to agree a new contract. | There are many factors that change energy market prices. We recommend keeping a close eye on the market and regularly get rates from suppliers. You can control the rates you get for your next contract, saving you money and stress. |
| Not checking your bills frequently. | Yes, checking energy bills isn’t fun. But saving money is. Suppliers may make mistakes when processing bills. If you don’t contact your supplier to change them, you may be overpaying right until the end of your contract. Check not only your rates, but standing charges, and any other charges on your contract. |
| Keep renewing with the same supplier. | Usually, renewal rates supplied by your provider are massively increased in comparison to current rates available on the market. If you keep renewing your energy contracts with the same provider, you are probably overpaying just for the customer service. Check out other suppliers and see what they have to offer. |
How Do I Find A New Energy Supplier?
So, you’ve followed our advice and spoken to your current energy supplier to let them know you’re leaving at the end of the contract.
Now comes the fun part.
If you just want the best deal with the best customer service, you may want to check out Niccolo Gas. You can get a quote from Niccolo Gas today.
Or, another way is to use a price comparison website. Websites such as Utility Bidder can help you explore the energy market for the best tariffs that suit your business.
It should be noted that you need to have a new deal agreed upon at the time of the old deal expiring. This is to avoid those expensive ‘out of contract’ rates.
What Are Energy Contract Exit Fees?
Exit fees are given by suppliers for anyone who tries to leave their business energy contract early, doesn’t give notice in the contract agreed window and doesn’t use the correct termination process. These exit fees are also dependant on the provider.
Commercial energy is bought and charged every month, with the supplier buying in bulk at the beginning of your contract. If you leave your contract early, the supplier could lose money. The ‘exit fees’ give the supplier a chance to get their money back.
3 Tips For Perfect Energy Contract Timing
| Be aware of termination dates. | The termination date gives you the freedom to agree terms with a new supplier. If you aren’t aware of termination dates, you could end up on ‘out of contract’ rates. |
| Be proactive. | Structure a price plan, giving yourself a guideline of what you’re willing to pay. You can then track these prices when the market fluctuates. Set alerts for when the energy market triggers your target value. |
| Don’t be misled by contract renewal dates. | You don’t have to wait until you’re coming towards the end of your current contract to sign up to a new one. Prices can be locked in over 12 months in advance of your expiry date. Take advantage of good market prices early. |