Out-of-Contract Rates

Out-of-Contract rates

Out-of-Contract rates are applied by business energy suppliers when customers have come to the end of their negotiated contracts. They are usually applied when a business’s gas or electricity contract ends and is automatically renewed by the energy supplier.

Automatically renewing a business gas or electricity contract is a common practice amongst business energy suppliers. Although it may seem convenient that the service is automatically renewed for your business, it comes with a pretty hefty price tag.

Rather than being renewed with similar business energy rates to those which you were paying during your contract, your business will be charged much higher Out-of-Contract rates. These higher rates can be a massive sting to any company, especially small businesses carefully planning their expenditure.

If your business experiences Out-of-Contract rates have you decide to cancel this, you may be even face additional penalties for ending the renewed contract early. In some cases, your supplier may even reject your cancellation request and this will mean your business is stuck paying astronomical prices for gas and electricity.

However, business energy suppliers are not allowed to enforce Out-of-Contract rates without warning you. At least 60 days before the date on which your current business energy contract is due to end, you should be contacted with a statement of the renewal terms and a reminder to renew.

To avoid being hit by staggering Out-of-Contract rates, be sure to shop around for new energy deals for your business as early as possible – we’d recommend that you start comparing business energy tariffs up to six months before your current contract’s end date.

SwitchMyBusiness.com works directly with energy suppliers to offer great deals and we’ll even handle all the paperwork for you! We know that changing energy contracts can be hard work so our service is quick, easy and dedicated to making your switch effortless.

To find cheaper business energy prices today, simply enter your details with our online comparison service or get in touch on 0800 411 8830.

Related Articles

DCP228 and Business Electricity

What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...

Read More
energy news

DCP 161 – Excess Capacity Charges

If your business uses a Half Hourly (HH) meter for its energy supply, make sure you’re ready for DCP 161...

Read More
Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
Excellent, 9.8 / 10

I dealt with Janis recently on renewing…

"I dealt with Janis recently on renewing our energy supplier. Quick, concise and very professional! Thank you"

This review was posted by Paula Barnsley on the 23rd of March 2018

Spoke to Jess

"Spoke to Jess. She was very clear with the options and it was all very straight forward to switch, including providing template emails and contact details to contact my existing provider. Highly recommended"

This review was posted by Phil on the 23rd of March 2018

Excellent service provided by Lorraine…

"Excellent service provided by Lorraine Carey. Not only was she efficient, cheerfully & pleasant but took all the hassle out switching service providers"

This review was posted by Norwegian Log Buildings Ltd on the 22nd of March 2018

Arron Newton made the switch process very easy

"Arron Newton helped me with our business switch - he was extremely well informed about the energy market and helped me find the best deal. The process was very easy."

This review was posted by sue nolan on the 22nd of March 2018

energy supplier

"Everything was explained clearly by the representative, Mark Weeks, and it made the renewal of our utility supplier painless. Prices quoted were competitive and we were able to secure a better price than expected. The process was quick and efficiently dealt with. Jim, owner of Four Seasons Greengrocers, Crediton, Devon"

This review was posted by Jim Bond on the 21st of March 2018