Why you should always remember your contract termination date
Business electricity supply contracts are generally for longer terms than domestic electricity supply contracts. It’s much harder for businesses to swap suppliers than it is for consumers. There are no cooling-off periods on commercial electricity supply contracts.
You can only start looking around for a new supplier in the contracts renewal window – that’s normally between 4 to 52 weeks before the end of your contract.
Your broker or supplier is not likely to communicate with you during the renewal window to inform you that your contract is coming to an end.
If you allow the contract to continue, the “rollover” rates you pay will likely be far higher than you agreed to at the start of the contract. It is not unknown for suppliers and brokers to extend a client’s contract at these much higher rates for a further term of at least 12 months if you do not cancel it.
The situation for microbusinesses is slightly different in that those on fixed-term contracts should receive a renewal letter from their supplier 60 days before the end of contract.
Within the letter, the supplier should include information on their current prices, your annual consumption, and on any new prices they propose to charge you if you renew.
Just as with your home and car insurance, if you do not respond to the renewal letter, your contract will almost certainly be extended and you will be charged at the rate in the renewal letter.
If you do issue a cancellation notice but you have not found a new supplier, your existing supplier will continue to supply you at “out of contract” or “deemed” rates. These rates are often even higher than the rates that you would have been charged had you allowed the renewal of the contract to occur with your existing supplier.
Make a note of your contract termination date and then set yourself a reminder for three months before. Use that time to find a new contract featuring a price you’re happy to pay and ask that supplier to start the switching process. You should assume that the switching process will take between four to six weeks.
Please bear in mind though that the switch will not actually happen until the day that you current supply contract ends and that the switch may be further delayed if you owe money to your existing supplier.
Business electricity suppliers and their tariffs – good to know
There are multiple variations on business electricity contracts and tariffs as you can see below. act window open up