Energy News 16/06/2017
Michael Gove is appointed energy secretary, suppliers continue to fall short on digital offerings and global e...Read More
It happens to all of us: half way through a contract, and you realise you’re paying over the odds.
Or maybe your supplier is nothing but trouble. Either way, you want out, and you want out now.
Unfortunately, getting out of a business energy contract isn’t always easy. However, Ofgem are working on making things as simple as possible for businesses.
Business energy tariffs last between one and five years, although the most common length is two years.
Once your business energy contract is up, suppliers will put you on so-called ‘out of contract rates’. These rates will continue until you tell them otherwise. As sorting out energy bills tends to come at the bottom of a never-ending to do list, many businesses end up paying out of contract rates for years. The problem? These rates are terrible value. Really terrible. Even if you use a really small amount of energy you should be avoiding out of contract rates like the plague. The fact that suppliers do little to get people off these rates is a source of constant controversy, and something Ofgem is trying to deal with.
Despite the bad press that suppliers get, lots of businesses are quite happy with their current provider – if they keep the lights on and charge you a fair amount, why bother looking elsewhere?
The fact is that if you don’t compare the market you’re missing a trick. The supplier who was best value when you took out your contract may not be the best value now, and you’ll never know if you don’t check. Even if you don’t change supplier, brokers such as ourselves can often save you money on a new contract with your existing supplier, as well as providing you quotes from up and coming contenders that you may not have heard of. Whilst it’s always good practice to check reviews before you leap into a fixed contract, we only work with people we trust – meaning if a company is renowned for poor service, we won’t recommend them to you.
If you want to switch energy supplier before you enter your ‘switching window’ (the period during which you can let your supplier know you want to switch), you’ll probably have to pay a sizeable cancellation fee. There is, however, a chance that this could be outweighed by the savings you make, so it’s always worth checking.
If you’re a micro business, you benefit from some extra protection – you can give a termination notice at any point throughout your contract, although your switch won’t actually occur until after your contract has finished. Additionally, if you miss your contract end date, you’ll have 21 days to find a new supplier before your existing provider moves you onto out of contract rates.
|Out of Contract||Any time – you are no longer in a legal contract|
|Micro Business (up to 10 employees)||You can let your supplier know of your intention to switch at any time, however the switch won’t occur until your contract is up.|
|SME||Your switching window will be a minimum of 120 days before your contract end date. Suppliers often ask for at least 30 days notice before you switch.|
|Large Business||Your switching window will be a minimum of 120 days before your contract end date. Suppliers often ask for at least 30 days notice before you switch.|
There is a way around this, especially if you use a lot of energy. Larger suppliers buy their energy far in advance, meaning you may be able to lock down a price well in advance of your contract starting.
If you’re moving into new premises you can organise an energy contract ahead of time – you just need to know the date you’ll be moving. If you don’t arrange a new contract, you’ll end up on deemed rates – which are basically out of contract rates by another name and are similarly expensive. Luckily, you can terminate your deemed contract at any time. Click here for more information on deemed and out of contract rates.
Our energy experts have an in depth knowledge of the whole market, including up and coming boutique suppliers and renewable energy only companies. They also have excellent persuasion skills when negotiating rates on your behalf! If you aren’t yet in your switching window, but want to see if you can arrange for a switch in advance, we can advise you on your best options.
"Very easy. Bea Luseni very efficient & knowledgeable."This review was posted by Alan Duffy on the 31st of March 2017
Super helpful and easy to work with
"Recommend this company in a heartbeat - Nicole Borneuf was super easy to talk to, was not pushy in the slightest, very helpful and replied with all my questions very professionally and did all she could to help. I had to deal with a few companies to sort my business energy out, all but Nicole were too pushy for my liking and I refused to follow through with them. Thank Nicole - you are a credit to your company, thank you for making the stressful energy change so easy."This review was posted by Mia Drew on the 29th of March 2017
An Extremely Competent Company
"Switch my business has not only helped my SME secure a good energy deal for the second year running but Jessica swiftly found a alternative supplier for me when I was let down on the day of switching by the new contractual provider I had chosen some 4 months previously. Being suddenly out of contract and without provider is everyone's energy nightmare. Greatest thanks."This review was posted by S McMillan on the 29th of March 2017
Helpful, friendly and we saved lots of money!
"Jessica Purnell was helpful and friendly, she made the whole process easy and simple AND we saved lots of money thanks Jess"This review was posted by Melanie Baker on the 23rd of March 2017
Quick & Easy
"Kabibi was very helpful and the whole process was very efficient. The one small reservation I had was that I was phoned up by Kabibi almost immediately having received my online quote - which wasn't enough time for me to finish reading the quotes! Fortunately she was able to assist me in a greater savings on both Gas & Electricity, and so as long as the switchover is seamless I will remain very happy with the service."This review was posted by Amanda Brown on the 21st of March 2017