A free 'Quick Guide' has been launched by ENER-G Procurement, the independent energy broker of the ENER-G group, to help organisations avoid making costly mistakes on renewing energy contracts.
The guide advises organisations how to avoid falling foul of expensive 'out-of-contract' and 'deemed rates', which sting many businesses each year.
All business customers must either re-negotiate their contract or give adequate notice to terminate their services prior to a contract end date, serving up to 90 days' notice. Failure to do so can result in over-inflated, uncompetitive 'out-of-contract'’ or ‘extended/deemed rates’ until a new deal is struck.
With the busiest spring electricity renewal period fast approaching, ENER-G is advising organisations to act now to avoid financial penalties and the prospect of being locked in to an uncompetitive contract.
The Quick Guide explains how and why the penalty charges occur and how to correctly manage existing gas and electricity supply contracts to prevent being subject to over-inflated energy prices.
“Companies which have contracts renewing between April and July should act now to avoid potential penalties," said Mark Alston, General Manager for ENER-G Procurement.
He added: “Suppliers require between 30 to 90 days’ customer termination notice to switch contract. Many businesses don’t realise this and are leaving it too late. Most organisations faced a 20% increase in renewal costs last year and the upward trend continues, so there is a clear financial imperative to test the market in an attempt to mitigate potential cost increases.”
The ‘Quick Guide to Out-of-Contract and Deemed Contract Rates' is available free to download from: http://www.energ.co.uk/quick-guides