In all likelihood, energy is one of your top three business expenses. Whether you run a restaurant, manage a manufacturing company or own a chain of stores, gas and electricity bills can seriously hinder your overall financial health.
Every business should periodically assess energy procurement, evaluating the current supplier and thinking whether there is a better deal available elsewhere. And there are five very good reasons why you should think about doing this today.
1. Your fixed-price energy contract is probably up for renewal
Autumn is by far the busiest time of year for energy buyers. Traditionally, the end of September/start of October is energy contract renewal time and most of the major suppliers still stick to this. You can renegotiate a contract at any point throughout its duration, but autumn is usually the deadline. If you fail to renew before the renewal date then you risk rolling over onto a bum contract (see below).
When renewing a contract, you should bear in mind that they can take some time to negotiate and finalise, particularly during the autumn months. Make the most of cheap wholesale energy prices by planning for the next five years.
2. Avoid the contract rollover trap
The rollover contract trap is an expensive one to fall into. Despite lots of media and regulator attention, many suppliers still have business-punishing contract rollover policies. If at the end of your energy contract you fail to cancel it within a set time period, then your energy supplier will (in a lot of cases) automatically sign you up for a new contract.
This new contract will be nowhere near as competitive as your ‘introductory offer’ contract and will not be good value for money. With renewal season on the horizon it pays to be vigilant and proactive.
3. Wholesale gas price could rise after the UK’s “Indian Summer”
Earlier this month we uploaded a blog post commenting on how the ‘cold start to September’ was pushing up wholesale gas prices. Later meteorological forecasts though replaced this cold snap with a significantly warmer ‘Indian Summer’ which many of us have been enjoying this last week.
The warmer weather has soothed gas prices somewhat, but buyers should be concerned about uncertain and extreme weather in the months to come. With unpredictable forecasts, prices could jump around considerably, making a fixed price contract an attractive proposition for ‘budget-certain’ businesses.
4. Registration for Business Gas.com buying groups is officially open
The Business Gas.com gas buying groups present a strong opportunity for businesses of all shapes and sizes to save money on their gas bills. By teaming up with other like-minded businesses, you can increase your gas buying power to purchase at cheaper prices.
All the Business Gas.com buying groups have a renewal date of the 30th September, don’t miss your chance to save.
5. Get a free M&S voucher
For a limited time, Business Gas.com is offering business owners a free Marks and Spencer’s gift card with each new gas contract. Negotiate a new contract today and receive a free £250, £500 or £750 voucher in time for Christmas.
More information: Business Gas.com gift card offer.
For advice on switching or to learn more about any of our offers please get in touch. Call: 0800 157 7175.