The Week’s Top Energy News – Halloween edition
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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.
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"Marie was knowledgeable and helpful. I feel able to recommend the service given without reservation. David Slesenger"This review was posted by David Slesenger on the 16th of August 2016
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Excellent Customer Service *****
"Jonathan Burgess is an asset to Switch My Business. He made me feel at ease and was more than helpful at all times. He made regular contact and guided me through the whole process which made switching a breeze. I just wish there were more customer service advisers like Jonathon whose friendly and happy demeanour make your day a much nicer one. Well done Switch my business and more importantly thank you Jonathon for all your hard work! Maria Owen Lodgecrest"This review was posted by Maria Owen on the 17th of August 2016
EXCELLENT CUSTOMER SERVICE
"I totally agree with a customer maria owen,Jonathan Burgess was such a pleasure dealing with and is truly a asset to the company, he made it very easy to switch my electricity companies, Jonathan Burgess was very helpful, easy to talk to it was like talking to a friend not just a customer adviser. I would definitely recommend switchmybusiness and try get hold off Jonathan Burgess if possible and have the same excellent service as I did. Rajan Shanan"This review was posted by Rajan Shanan on the 19th of August 2016
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"Arron who dealt with my switch of energy and gas has been a huge help and extremely efficienct and easy to deal with. Despite British Gas throwing obstacles in the way at every turn he has doggedly stuck to his task and saved the day. Thanks Arron."This review was posted by Rod Pryce-Jones on the 19th of August 2016