Ofgem has released guidance for firms on how to understand business energy contracts.
The energy regulator has warned that it is vital firms understand their energy contracts in order to be in control of their business energy bills.
Julian Morgan, managing director of the Energy Advice Line, the UK’s first price comparison and switching service for businesses, welcomed the release of the Ofgem fact sheet ‘Energy contracts for business customers’.
He said that in addition to reading the guidance, businesses should also consider using an impartial switching service like the Energy Advice Line, which had a panel of experts to explain contracts and help businesses to switch their business gas and business electricity suppliers.
“An independent service like the Energy Advice Line not only helps firms to find the best available business energy prices, but our expert team can help explain energy contracts and how to switch suppliers,” Mr Morgan said.
“We are completely transparent about the prices on offer, and about the commission we receive for introducing new customers to suppliers, so businesses can trust us completely.”
Ofgem’s fact sheet includes a range of hints and tips to help businesses understand their energy contracts. These include:
Make sure you have a copy of your contract – if you are a micro business, your supplier must send you a copy of the contract terms and conditions. If you are a larger business, your supplier must ensure that you can see a copy of your terms and conditions. Make sure you read the contract and all documentation your supplier sends you.
Know the dates of your contract – it is vital ensure you know when your business energy contract begins and ends, and what the notice period is to switch.
Be aware of the difference between your renewal period and the notice period on a fixed-term contract – be aware that the terms of a household and a business energy contract differ. Make sure you know exactly when the window is for notifying your supplier that you wish to sign a new deal or switch.
Understand what will happen if you don’t switch or sign a new fixed-term deal – if you are a micro business your supplier could roll over your contract for up to a year and increase the rates or change the terms. If your company is larger, your supplier may be able to roll over your contract for longer than one year.
The Energy Advice Line is one of the UK’s leading independent price comparison and switching services exclusively for small and medium-sized businesses. The service enables firm to quickly and simply compare business energy and business gas prices, and to switch to the best available deal on the market.
Businesses can also prevent being caught unwittingly in expensive rollover contracts with their existing suppliers by signing up with the Energy Advice Line’s free renewal reminder service. For further information visit www.energyadviceline.com