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.
- SMART or Sub meters
- Solar or Wind power
- Taking advantage of voltage
- Green energy
- Green loads
- Carbon Reduction Commitment Scheme