Hints & Tips – Energy Procurement

By EasySwitch | 16th November 2017

Avoid contract rollovers:

When you receive your renewal offer from your supplier, don’t just accept the first one! Renewal offers are typically more expensive than you’re currently paying and often more competitive rates can be secured.

Terminate your contract:

It is important that you formally send termination notice to your current supplier within the notice period outlined in your terms and conditions. If you don’t, you will rollover and could be unable to change to a new supplier until this notice period has been served.

Out of contract or variable rates:

Try to ensure you officially sign into a new fixed contract term, otherwise you’ll be placed on what is referred to as ‘Out of Contract’ or ‘Variable’ rates. These rates are often double market prices and start automatically when your current contract ends.

Use a broker:

We would say that I guess, however over 60% of companies select ‘rollover’ contracts each year and lose combined savings of millions of pounds. Brokers will scour the market and have the experience to get you the most competitive rates.

Use referrals:

Speak with your business network to see who they use to secure their energy prices. Using a trusted provider from a personal recommendation reduces the risks.

Check your contract:

Don’t become obsessed with just reducing your Unit Rate (p/kWh). Many energy tariffs have both a Unit Price and Standing Charge, but low Units Rates with high Standing Charges doesn’t always mean cheaper total annual costs. Ensure you compare the overall annual cost of your bill, based on what you use, rather than just individual rates.

Fix for a longer term:

Get the best prices for all contract terms, then consider a longer-term contract if you or your broker believe prices may rise. The longest Fixed Rate contract is usually for 36 months, which can be approximately 10% higher than a 12-month contract, however prices today at these levels will not change, which could help your business with future budgeting.

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