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Bills, Bills, Bills
Listed under: One Voice
Published: Tuesday, May 19, 2009
With energy prices rising left, right and centre, it's often hard to know which one's right for you. Jonathan Elliott, managing director of price comparison site, Make It Cheaper, discusses the importance of selecting your supplier wisely
“Nowadays, the rates companies charge small businesses for electricity can vary massively from one place to the next,” Jonathan explains. “In fact, it's not unusual for a shop to be paying up to three times the rate of a property situated just one door down! Over the past year we've seen suppliers charge their clients everything from a modest seven pence per unit in Sheffield, to a far costlier 32 pence in Scotland. Sadly, long-standing customers tend to be hit the hardest – often facing much higher bills than their newer counterparts – making it essential for retailers to ensure they switch electricity suppliers regularly.
Read Between the Lines
“But be warned, suppliers won't make it easy for you! Each company has its own specific – and often quite complex – rules about serving notice. At the moment, the six biggest energy suppliers in the UK have terms and conditions amounting to approximately 5,500 words each and, unsurprisingly, buried somewhere in the small print is the information regarding how and when customers are allowed to serve notice.
Contrary to what many people think, most suppliers only allow their clients to switch contracts during very specific periods of time. These are known as 'renewal windows' and can last anywhere from 120 days before a contract ends, to one week prior to its expiration. However, unlike standard household electricity accounts, failure to act within this time-frame will result in businesses being automatically rolled into new, legally-binding contracts, which are likely to last at least another year.
Take Action
If – like the vast majority of businesses out there – you're unsure about the type of contract you have or are uncertain about when it ends, the first thing you need to do is request a copy of the terms and conditions from your supplier, ensuring you ask them for the end-date of your agreement too. Once you are armed with this information you can work out exactly when your renewal window opens and take things from there.
Serving notice should always be done in writing, as early as possible and sent by Recorded Delivery. This guarantees your right to switch, ensuring you avoid the roll-over trap. Once you have done this, make sure you take the time to find a deal you are 100% happy with. Not only will this save you a lot of money and hassle in the long run, but it'll give you the opportunity to see what else is on the market too. In the current economic climate, every penny counts and cutting back on your electricity bills could make all the difference to your business this year.”
Make It Cheaper is a free independent price comparison service that helps businesses find the best rates on the market. For more information visit http://www.makeitcheaper.com or call 0800 970 0225
Read Between the Lines
“But be warned, suppliers won't make it easy for you! Each company has its own specific – and often quite complex – rules about serving notice. At the moment, the six biggest energy suppliers in the UK have terms and conditions amounting to approximately 5,500 words each and, unsurprisingly, buried somewhere in the small print is the information regarding how and when customers are allowed to serve notice.
Contrary to what many people think, most suppliers only allow their clients to switch contracts during very specific periods of time. These are known as 'renewal windows' and can last anywhere from 120 days before a contract ends, to one week prior to its expiration. However, unlike standard household electricity accounts, failure to act within this time-frame will result in businesses being automatically rolled into new, legally-binding contracts, which are likely to last at least another year.
Take Action
If – like the vast majority of businesses out there – you're unsure about the type of contract you have or are uncertain about when it ends, the first thing you need to do is request a copy of the terms and conditions from your supplier, ensuring you ask them for the end-date of your agreement too. Once you are armed with this information you can work out exactly when your renewal window opens and take things from there.
Serving notice should always be done in writing, as early as possible and sent by Recorded Delivery. This guarantees your right to switch, ensuring you avoid the roll-over trap. Once you have done this, make sure you take the time to find a deal you are 100% happy with. Not only will this save you a lot of money and hassle in the long run, but it'll give you the opportunity to see what else is on the market too. In the current economic climate, every penny counts and cutting back on your electricity bills could make all the difference to your business this year.”
Make It Cheaper is a free independent price comparison service that helps businesses find the best rates on the market. For more information visit http://www.makeitcheaper.com or call 0800 970 0225
