What different types of Business Energy Contracts are available on the Market?

Automatic Rollover Contract (Evergreen Contracts):

So called because once they come to term, if you do not provide prior notice to terminate within the designated window, your contract is automatically renewed. The majority of business energy contracts adhere to these terms. Note that if you are on one of these contracts specifically known as Evergreen contracts or Assumptive renewal contracts, you will find your new contract will now hold a new set of terms and conditions that have not been agreed with your consent. The likelihood is that your new contract will lock you into a new agreement for a term of anything up to 3 years and your usage unit rate will be 30% higher than initially agreed.

28 Day Contract:

The energy market was de-regulated almost 20 years ago and any business that has not switched suppliers or arranged a new agreement find themselves on the 28 day business energy contract. The terms of their original contract means that the supplier can change the existing rate up to twice a year with only 28 days notice. This means at various periods, the rates can fluctuate up or down. Although history has shown us that they gradually go up! As the current business climate looks to improve and we come out of a recession the demands for energy will once again increase, in turn this will put pressure on energy prices to rise.

Any volatility or uncertainty in the market can cause an increase on your bill which can be unexpected. This is where we can help you source a new contract that will provide you with a new competitive rate and for a term of 12 months to 5 years allowing you to better manage your energy use and budgetary requirements.

Deemed Rates or Out of Contract Rates:

On the rare occasion that a business terminates its contract with its supplier but fails to find a new supplier. The result is that the previous supplier will place the business on “out of contract”; rates. These rates will typically be 2-3 times higher than the market rate. Another instance may be if you have recently acquired a new business premises but have not managed to arrange a suitable contract. In both these instances you have 28 days notice period to switch to a fixed term, fixed price contract.

Half Hourly Contracts:

If your business has a high consumption rate of energy it is likely that the premises is fitted with a half hourly meter. This gives you accurate usage readings and ensures that your bills are not estimates; this eliminates overcharging.

”How

We cross match your needs against the hundreds of different products/tariffs available. Our long-standing relationships with energy suppliers means that we have enviable purchasing power. At Energy Procurement we are proud to work with utility companies who are able fix energy prices at competitive rates, in some cases up to 5 years. Whether you are looking for the cheapest, best fixed term or most ethical supplier – we will find a suitable provider.

”Will

No. By switching suppliers you are only changing your “billing” provider. Your actual energy supply is delivered by your distributor which you cannot change.

”Why

Your bills provide unique reference numbers which allow us to analyse your usage and needs. Without these unique reference numbers we will not be able to provide you with a valid quotation.

”How

If you are switching suppliers the contract terms start and end date are specified on the contract. If you are arranging a new business energy contract it can take 14 days to 6 weeks to begin the new contract. To ensure that your switchover is smooth we don’t just obtain the new contract terms for you. We also administrate the whole process on your behalf. We help process your paperwork for both the contracts (old & new). We read through the terms and conditions of both contracts and highlight any potential pit falls you may encounter and help you ensure these are avoided.

”Am

Certainly not! We analyse your current spend and usage. We go to the whole of the business energy market and analyse the products available. We then present you with our findings and recommend the product that suites your usage levels. Whether you choose to take our advice or not is YOUR choice and you will not be charged for any information or advice we give you.

”How

Having helped you broker your new deal, process your paperwork and seen your application all the way through to “live” we continue to manage your account. Though our service to you is free we continue to nurture your accounts and when your contract comes to term we will begin the whole process again on your behalf and work to better your existing contract!

”What

Introduced on 1st April 2001, the Climate Change Levy (CCL) is an environmental tax on industrial and commercial use of energy and is paid by all businesses that use over 12000 KWh per annum of electricity or 52000 KWh of gas per annum. The income generated is now used in the overall strategy of reaching our commitments to reduce carbon in the UK.

”How

There are many developments within the industry as we embrace greener energy and renewable energies for both home and business use. The government is also making changes in the industry such as the roll out of CRC Smart Meters in every UK business by 2016. If your company has considered implementing any of the following, then we are strategically placed to help you gain more information on the technologies and are able to help you implement the relevant strategies.
  • SMART or Sub meters
  • Solar or Wind power
  • Taking advantage of voltage
  • Green energy
  • Green loads
  • Carbon Reduction Commitment Scheme