At Enerteq we give advice to businesses renewing their energy contracts and in this blog discuss some of the main mistakes that are made during this process.
1. Contracts can be renewed much sooner than many presume
Some businesses begin considering their contract as little as 3 months before the renewal date. This could be detrimental to a good deal as prices fluctuate throughout the year, so if renewal is left for too long, a good deal can be missed.
On longer contracts it is good to plan ahead and one can actually secure their next rate as long as 6 months in advance for smaller suppliers and 12 months from larger suppliers. Because of this, it is advisable to keep an eye on energy rates and act upon changes in the market accordingly.
2. Factors other than weather affect energy rates
A common mistake that happens within the business sector is the renewal of energy contracts in what are seen as the cheaper seasons, Spring and Autumn. Normally this is true, but in the last year, rates remained similar from the Autumnal to Winter months and actually fell to a low during February. Factors such as Brexit can cause the market to fluctuate and thus it is a good idea to check how rates change in relation to world events.
3. Repeatedly using the same supplier
If a supplier is proving to be hassle-free, it is very easy to fall in the trap of renewing with them for extended periods of time. This can be useful as companies can offer better rates to existing customers, however, sometimes it can be problematic.
If you do not arrange a new rate with your supplier it is likely they will charge you out-of-contract prices, which are heavily inflated. To ensure a good deal, make sure you know your renewal date and speak directly with your supplier when you decide to sign a new contract.
4. The cheapest tariff is not always the best
On paper the cheaper rates are tempting but this is another common mistake that can lead to not getting the best deal available. For example, some contracts may have special offers that discount for monthly or quarterly direct debit payments and you may get charged more for standing rates if you have a smart-meter. Some suppliers don’t include all of the costs in their unit rates, such as feed-in tariffs. These factors can make it difficult to make like for like annual cost comparisons.
Whenever arranging a new contract, you should explore all the special deals and other factors that can contribute to you getting the best possible outcome.
5. Forgetting to double-check bills
Billing mistakes can happen in the energy sector and if you are not checking properly, this can continue to happen to the end of your contract. You should always ensure that the rates are correct, not to mention VAT and Climate Change Levy, where these are applicable. Make sure that you always give an actual reading for your bill also, as otherwise you may be prone to paying for energy you are not using if the company overestimates your usage.
If you are currently renewing your energy contract or need to become more energy efficient, contact Enerteq today – Contact Us