Top 10 Energy business Contract Tips
We have put pen to paper and written down our top 10 tips for what you should be looking out for before you sign a contract. There’s nothing revolutionary here, but you’ll be surprised when we sit down with clients how many haven’t thought about 1 or 2 points below. These could make all the difference between being profitable or not as a business.
Length of contract: Every business is different but it’s always important to consider the length of the contract you are singing and whether it is suitable for your business. Contracts can range from 1 to 5 years, so be sure to choose the right term length, white we know is even hard at the moment with the way prices are fluctuating.
Fixed or Variable Rates: Thin about whether you want a contract which offers a fixed or variable rate. A fixed rate will provide you with price stability and equally helps you budget for your energy expenses. However, variable rates can be advantageous if energy prices are expected to decrease. It can always depend on the type of business you have as well.
Termination Fees: Always check for early termination fees and make sure you understand the terms and conditions of the contract. If you think you may need to break the contract over it’s term then it is important to know the cost of doing so before you sign.
Renewable Energy Options: As we as a country look to go green, always consider if the contract uses or gives you the choice to use renewable energy options, such as wind or solar power. This can come at an additional cost but also can give a lot of added value and maybe what swings a new customer on to using you.
Contract Renewal: Understand the contract renewal process and what options are available when the contract expires. We’re covered termination fees and contract length but as part of this make sure your not going to get hit with higher rates after a certain period of time or be locked should you not give notice at the right time.
Billing and Payment Options: Determine what billing & payment options available. Depending on your business and its cash flow when you have to pay can make all the difference. Most will be direct debit or bacs
Energy Usage Monitoring: It’s worth asking if the supplier offers any free energy usage monitoring tools. These can help you track your usage and identify opportunities for cost savings as well as manage expectations for each billing period.
Customer Service: Often forgotten about but when you need help you don’t want it to be a hassle. Consider the level of customer service offered by the energy provider, check Trust Pilot, Google Businesses and google them to make sure you will be looked after. Equally that it’s all not a scam.
Contract Terms and Conditions: Carefully review the terms and conditions of the contract to ensure that you understand your obligations and any limitations or restrictions.
Price Comparison: Always compare prices and contract terms with multiple energy providers. We can help with this (see below) but equally we have 3 or 4 providers we check prices through for our other businesses and this is massively helpful in making sure we get the best rate.
We want you to know that if you need a price comparison on your next energy contract that we can help. We can get you full market access to see the best available unit prices live and hopefully give you the best price around.
If you want to know more about how we can then please contact us here.
