Over the last month, one by one the big 6 announced they will no longer automatically place business energy customers onto roll over energy contracts if they take no action during their renewal period. The changes are being rolled out over the next year, mainly in April, so if your contract runs out before then you may still be in danger of being locked into higher prices; we’ve got info about each supplier’s schedule on our site.
This is great news for many SMEs who have fallen victim to their energy supplier by not reading the small print in their renewal letter and trying to switch a week or two before their contract ends. At this point the supplier will have already rolled you over onto a new tariff and locked you in for a year, usually on extremely uncompetitive rates (read: daylight robbery).
The problem lies in that many businesses do not realise their renewal window only lasts for a few weeks once the business renewal letter comes through the door and they could quickly and easily find a cheaper tariff by comparing online.
Now however there will be less pressure on companies to put everything to one side and review their prices, which should create a much more competitive marketplace, however there is the danger of more businesses who usually act immediately becoming apathetic and putting it off until they find themselves with ridiculously high energy prices after the roll over to renewal rates.
So if there’s no pressure, why shouldn’t I just sit back when my renewal letter comes through?
Because that’s exactly what the energy companies want you to do. Currently just under 50% of businesses let themselves roll over and are overcharged on a fixed term contract for at least a year long period, for no reason!
Now however, just because you won’t get rolled over and locked into and expensive contract doesn’t mean you’ll find yourself paying reasonably prices. Most suppliers haven’t detailed yet exactly what will happen if you roll over, but chances are you will end up paying far more than you should do for your energy.
If you’re worried about getting caught out and paying higher prices, especially if your contract ends before most suppliers remove roll over lock ins in April 2014, give us a call on 0800 988 8375 and we’ll arrange to let you know when your renewal period starts so we can find you the cheapest prices for your business.