Problems - Renewing Business Energy Contracts With Your Existing Supplier...

Author - Michael Hughes | Out-Of-Contract Utilities?

In our previous newsletter we focussed on why typical commercial energy brokers can leave you broke click here to read. Today we explore the problems associated with renewing business energy contracts with your existing supplier...

Using your existing supplier to facilitate a new deal may be the simplest way to renew an energy contract, however it's also often the fastest way to haemorrhage significant amounts of money, which we will discuss below.

The Choice Is Yours:

With an enormous choice of suppliers including; SSE, Regent Gas, YU Energy, British Gas, BG Lite, E.On Next, Smartest Energy, Shell, Scottish Power, Ecotricity, Crown Gas & Power, Drax, EDF, Corona Energy, Engie, Opus Energy, Total Energies, NPower, Positive Energy & more...

While it is worth obtaining a renewal quote from your current supplier, it's extremely unlikely that they will be the most cost effective option for you, and you will likely end up securing rates 20% -30% dearer than the market average!

Last-Minute Renewal Offers:

Another problem with renewing business energy contracts with your existing supplier, is that their renewal letters are typically churned out automatically 6-8 weeks prior to your current contract expiring.

This forces you into an extremely reactive position and leaves you at the mercy of the market, as prices could have been much lower had you agreed a new contract a few months or even weeks prior to receiving your renewal letter.

A more proactive strategy is to use 'advanced energy procurement' to renew your contracts at opportune moments up-to 12 months prior to your contract expiry date. We have an entire newsletter dedicated to this topic click here to read.

'New' Added Risk Premiums:

Finally, a new problem your business could face when renewing energy contracts with your existing supplier is the addition of risk premiums being added to contracts.

This means if you are a newly formed company with less than 2 years trading history, or you operate in a sector such as hospitality which is deemed as high risk, you could be discriminated against with a higher charge!

These premiums can add as much as 5p per unit to your rates, equating to thousands of pounds extra on your annual charges. If your existing provider is looking to include a risk premium into your renewal contract, will want to look elsewhere!

Speak With Our Agency:

Our last two newsletter editions have outlined that - energy brokers adding huge commission margins to contracts can leave you broke, while renewing with your existing supplier will limit you to their tariffs only, which could cost significantly more!

So what can you do instead?

Fortunately, our agency Out-Of-Contract Utilities??can offer your businesses choice and value against brokers and suppliers on commercial Gas, Electricity & Water contract renewals.

We can help you access an entire range of tariffs from 25+ suppliers, and because our agency forfeits the vast majority of the commission margin suppliers expect to pay us when placing contracts with them, this simply adds to your overall savings!

Regardless of whether you currently use an energy broker, or a supplier directly, get the best of both worlds and save money with a renewal quote from us today...

?? 0191 308 4556

???[email protected]

Thank you for reading!