Energy Contract Renewals: 6 Reasons why you should start planning ahead...
We recommend that businesses look at planning for their energy contract renewals at least 12 months in advance to enable you to access the most competitive competitive energy contract prices - but that's not the only reason.
Here we have listed 6 of the most important reasons for you to plan ahead in placing your next business gas and electricity contracts...
1) You need to budget for your future energy usage
The sooner you have a renewal offer, the sooner you will know what the future energy cost implications will be for your organisation. This will be vital for you to make informed decisions regarding your contract renewal.
2) Price comparison isn't always as easy as you expect
The T's and C's of your energy contract can vary significantly between suppliers. More often, clauses relating to third-party charges can make a considerable impact on the price that you pay for your energy. e.g. Are you aware of Contracts for Difference (CfD) charges from April 2015?
3) Longer timescales can offer increased opportunity
By planning ahead, you will be allowing for a wider timescale in which to track the market and secure lower prices by locking into a contract when the time suits you – and not when you are forced to.
4) Understanding which purchasing strategy is best for your needs
With so many contract options available, it is easy to become complacent and decide to ‘stick with what you know’. You need to take time to examine all the options in order to decide the method that best suits your organisation.
5) Automatic renewals and Out of Contract (OCC) rates
Failing to renew your energy contract could increase costs further as you may find yourself locked into out of contract tariffs. OCC rates can sometimes be double the cost of a supplier’s standard business tariff, so doing nothing is not an option!
6) Allow for change in your current situation
Your next energy contract should consider changes occurring in your business such as reduced operational usage or site changes. Energy saving initiatives will also need to be taken into consideration as you may need to renegotiate your tolerance levels.
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