Energy contracts
If you are a micro-business and signed or renewed a contract after 18 January 2010, you now enjoy greater contract protections. If these protections do not currently apply to your business you need to ensure that you have all the information you need to avoid being rolled over in your exisiting contract or ending up out of contract and on deemed rates.
Rollover contracts
Many small businesses have experienced problems with being ‘rolled over’ from their current energy contract in to a new one without their knowledge. Unlike domestic consumers businesses have to negotiate contracts with their energy supplier that typically last between one and three years.
When this contract expires, businesses will need to contact their supplier or another supplier (if they would like to switch), and negotiate a new contact. Some business customers do not have hard copies of their contract terms and conditions, so a significant number of them are unaware of the notification window where they can negotiate a new contract or move to a new supplier and are therefore ‘rolled over’ on to the same contract for another year, this can result in businesses missing out on better deals and potentially lower prices or having to stay in a contract which is no longer suitable for their needs.
How do I avoid being ‘rolled over’
In order to avoid your contract being ‘rolled over’ you will have to renegotiate your contract or transfer your contract to another supplier. Transferring from one supplier to another is often the most cost effective way of reducing your energy bills but it can be a difficult and costly process. The biggest challenge facing any business is knowing what restrictions the current contract places on switching. If you do not follow the set procedure you can be ‘rolled over’ into another contract where the price and the contract length can then go up sharply. It is vital that you are fully aware of the terms and conditions of both your existing supplier and those of the supplier to whom you wish to transfer to.
What happens if I’m not ‘rolled over’ but haven’t got a new contract?
Your current supplier will have bought energy for your contracted period of supply at agreed rates. If you do not have a contract beyond this date energy prices may be more expensive and you will be charged accordingly.
For more information see our leaflet Switching energy supplier – advice for small businesses.
