When working your way through the minefield that forms utility contracts these days, it is very easy to get bogged down with confusing details. Do you know what sort of contract you have? Quotemyenergy.co.uk is able to help you to understand the different business energy contracts.
If you have never heard of a micro business contract you are going to be wondering exactly what it is and how it is different to other types of contracts. Ofgem has put into place a number of regulations to help small businesses to figure out when they need to consider their energy supplier’s services. Business suppliers now have to put on every contract an end date and the required amount of notice for a contract when it is a fixed term contract. Quotemyenergy.co.uk was pleased to find out that Ofgem also allows small businesses to inform their supplier at any time before the required notice that they are going to want to switch.
If a contract has started either on or after 30th April 2015, the maximum notice period has been reduced. Where it was once 90 days it is now 30 days. Suppliers are now also obliged to contact businesses around 60 days before the end of a contract to provide details of their energy consumption and to provide information on tariffs so they can see if they would be better off on a new deal with their current supplier, helping with the negotiation of a new deal if needed.
Do you know if your company qualifies as a micro business? There are around 1.6 million in the UK at the moment. You are a micro business if:
Usage of this amount of energy is the equivalent of an annual bill of around £10,000 on energy, not including taxes and levies. Your supplier may ask for a range of details about your business when trying to determine if you qualify as a micro business.
Provide supporting evidence and approach the supplier to discuss the issue. You will need to show that you meet the above criteria. Remind them that they are obliged to do everything they can to determine if your business is a micro business.
There are occasions when a contract will roll over automatically. This is normally because you have not informed your supplier that you want the contract to end. In the first instance, you should speak to your existing supplier to have this matter resolved.
When you enter into a new contract you should consider:
This is usually the type of contract in place when a business starts up at a new premises, before an official contract is put into place. The term may also be applied when a customer comes to the end of a contract but is continuing to use energy. This could happen because:
Ofgem estimates that there are around 10% of companies that are on deemed contracts * but most people do not know that they can be paying up to 80% more than if they were on a properly negotiated contract. Shopping around can save you a lot of money here.
When you are on a deemed contract your supplier is obliged:
If you are on a deemed contract the supplier is not able stop you from switching to another supplier. You can do this for any reason and you can do it at any time. You will also not be asked to give notice and they cannot charge you a fee to terminate.