News

20th December 2011

By recycling our paper with Hereford Pedicabs we have saved an estimated 1 tonne of C02. As an energy broker, we can also advise clients on green energy tarriffs, renewable energy and energy saving products

Renewal Process

A business may be billed in the same way as a household - but the contract renewal process is completely different.Businesses are tied in to 1-5 year contracts. Once in a contract you are fixed into it unless there is a change of ownership or you pay an early get out clause. These are often expensive making it unaffordable to use this option.

All suppliers have different termination clauses, period and renewal processes.

Many businesses will be sent assumptive renewal letters notifying them of their new rates up to 120 days in advance of their contract expiring. If the renewal offer is not rejected in writing within a certain notice period, the supplier deems it as an implicit and unconditional acceptance for another 12 or 24 months. It is believed that 9 out of 10 small businesses have these clauses applied and therefore have no options, but to except the higher rates offered.

Change of Ownerships

If a customer has recently moved into a property, the previous owner or tenant’s gas & electricity contract is rarely novated across. Many suppliers refer to this as a “change of ownership”. As they are yet  to agree contract terms (Price, contract type & duration) with the new supplier, many suppliers will place the customer on a “deemed contract” or “out of contract price”. These out of contract prices can often be as much as 2 - 3 times more than a contract price.

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