Have you ever been "rolled over" into a new contract for gas or electricity? If you have, join the club.

Different Contracts

What is a rollover contract?
A rollover contract (also known as evergreen, assumptive renewal) is 'an agreement between two parties that is automatically renewed (rolled over) after each completion - or maturity period, until cancelled by either party.' Unlike household energy contracts, nearly all gas and electricity for business contracts are evergreen, meaning they automatically renew themselves if you don't terminate them with a letter of notice. Some suppliers renew over 90% of their customers in this way, rolling them over on to new not-so cheap energy prices when often the customer is unaware this is happening.

How do I avoid getting rolled?
Each energy supplier has different, and often complex, rules about renewing your business gas contract with them and they will usually write to you anywhere from 120 days before your contract end-date to inform you of their intention to roll you over. This letter often triggers the opening of your renewal window, putting the onus on you to terminate the contract in writing before the window closes again which - in many cases - can be as little as one or two weeks later.

Can Charities or Not-For Profit Organisations get better terms?
Sadly businesses, in the eyes of the utility companies, include all not-for-profit / community buildings such as churches, village halls and Scout huts. Still, this doesn't mean they can't compare business energy prices and switch to the cheapest electricity supplier. One area where you may be able to save is on VAT and the CCL (Climate Change Levy), where special considerations are made.

Are there any other types of contracts to be aware of?
The other most common types of contracts for businesses are '28 Day' and 'Deemed Rates'. However, most people on these contracts don't even know they are on them, and if they did, they would certainly want to change, because they are not beneficial to your businesses health!

What is a 28 Day contract?
If you forget or don't bother to compare energy prices, or have not attempted to switch energy suppliers since the market was de-regulated in the 1990s you may well be on a 28 Day supply contract. It is amazing how many companies are and don't know it. The electricity prices charged for these contracts can go up and down with the market and are rarely competitive. As such, we would always recommend a business switches on to a competitively-priced 'fixed-rate, fixed-term' contract for a minimum of a year - even with the same supplier. Thankfully, as the name suggests, switching to cheap business electricity can be carried out anytime after giving 28 days notice.

What are Deemed (or out-of-contract) Rates?
These rates are usually the worst and usually apply to businesses that are either new to the property or have terminated a contract but failed to switch to a new supplier. The good news is that, like 28 Day contracts, there is only a maximum of 28 days notice required to switch onto the cheapest electricity rates.

What if I'm new to the property?
If you have just moved into a property, you will be supplied by the same business electricity supplier that the previous tenants used. However, this supplier is likely to be charging you out-of-contract rates which are significantly higher than average. It is important that you arrange a new commercial electricity contract for your business as soon as you can after moving in. If you call us with your new address, we can find out who your current supplier is, your meter serial number, compare energy prices and advise you on the best option going forward. Alternatively look for the MPAN number (Meter Point Administration Number) on your bill. (See where your MPAN is)

Can you install a meter in to a new site?
In this instance, we would advise you to contact your local business energy supplier, have them install a meter at your premises and enter a fixed-price contract with them on the minimum fixed-term contract they have available (usually a year but sometimes as short as nine months). Once you are on supply and have a meter reference number we can search the market for a better deal to switch to once your initial contract expires.

Apply for an electricity quotation now.