Can I have a business energy contract if I work from home?
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Keen to keep your business gas and electricity costs as low as possible? If so, avoiding out-of-contract rates and deemed rates is essential. Here we explain what they are and how you can keep them from driving up your gas and electricity bills.
Out-of-contract rates are the default rates you pay for your business energy when you do not have a formal contract with your supplier. You’ll find yourself paying these rates if:
• Your current contract ends and you haven’t arranged a new one with your existing energy provider or any other provider.
• You’re in the process of switching your energy provider but delays have resulted in a gap between the end of one contract and the beginning of another.
Out-of-contract rates are considerably more expensive than typical market rates. In fact, they can cost you more than twice as much as contracted rates.
If you want to avoid this type of expense, you need to be aware of when your current energy agreement ends so you can make the necessary arrangements well in advance of this date. Happy with your current supplier? Have a chat with them about the best deals they can offer you if you renew with them. If you’d like to switch to a new supplier, it’s advisable to do your shopping around a few months before the end of your contract. The switching process takes time, so you need to have your switch arranged at least 30 days before that end date.
A deemed contract usually comes into place when you move into new business premises and begin to consume energy without having entered into a formal contract. In this case, you’re ‘deemed’ to have entered into an agreement with the previous occupant’s energy supplier and will be charged default deemed rates. While these are higher than formal contract tariff rates, they’re not quite as high as out-of-contract rates.
In most cases, you can avoid paying deemed rates altogether by arranging a new energy contract before your change of premises. If you’re moving from one business address to another, discussing your options with your existing energy supplier can be helpful – you may be able to carry over your current deal to the new premises.
If for any reason you’re unable to arrange a contract before the move, make sure you arrange one as soon as you’ve moved in. The longer you wait, the more money you’ll waste on deemed rates! Fortunately, you are not tied to a deemed contract the way you would be to a formal one – you can terminate it at any time (without a fee) and you’re free to switch to another supplier if you wish to do so.
If your current energy agreement is coming to an end or your business is changing location, you can always discuss your options with SwitchMyBusiness.com. We can help you find the best deals and ensure a smooth transition from your current tariff to the next one. You can call us on 0800 411 8830, or begin comparing tariffs using our free online energy comparison tool.
"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