When are your contract prices “deemed” to be too high?

Speaking with some of our customers at the start of the year, reducing overheads and budget management seem to be the big “resolutions” for 2019! So, is there a way to use your utilities to help?

With energy prices on the rise, too many companies are paying more for their business energy contract than they should. With the bills are broken down into such small costs per unit, these costs can really start to mount up.
What if we told you that there is a good chance you are one of these companies? You may be thinking “Surely not, I’ve been with my supplier for so long, I must be on the best deal”. Well, it’s likely you’re not!
Business energy contract quotes are bespoke and often can’t be compared online. However, on average, small businesses spend £5,100 on electricity and £4,100 on gas per year. So, how do you find out if you are/are not on the best deal possible? You need to examine your bill and then call around to get comparisons, but it’s not just ok to get the prices, you must be prepared to change.
Looking into the past, companies aren’t doing this. A 2015 competition and markets authority investigation revealed that around 40% of businesses haven’t switched in the past five years and 39% have never switched at all! That’s only 21% of businesses regularly checking and comparing their energy prices to ensure they are on the best deal possible.
When your current business energy contract is coming to an end, you will enter your renewal window, this will be 6-12 months from the contract end date. This is when you should start to shop around as you can lock into a new contract from this time. This contract will then start when your current contract ends. If you don’t renew, you will be moved onto a rolling contract, these prices aren’t always competitive.
What if you’ve just moved in? The supplier will place you on deemed rates from the date your lease was signed and continue to charge you these until you agree a new contract. These prices can be as much as 50% higher than today’s contract prices.
Depending on the pricing of the business energy contract you’re moving out of will determine whether you can make savings against your current deal; the main savings should be made against you renewal quote. Using a third party to gain all the market data for you, will save you time, and with their knowledge and buying power will often result in a better price than you are being offered by the suppliers direct.

To find out if your business energy contract is the best deal for your specific requirements, get in touch with the team here at The Apertus Group. Give us a call on 01604 212828 or email us on info@apertusgroup.co.uk

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