FAQ
What will your renewal reminder do for me?
How much will your reminder save me?
How does your renewal reminder work?
What is an energy contract?
Why is an energy contract different?
How do I know if I'm in contract?
When is my contract renewal date?
What is a termination notice letter?
What will a renewal offer look like?
What should I do if I receive a renewal offer?
What will happen if I do nothing?
Are my details safe with you?
What will your renewal reminder do for me?
If you follow our three step guide you will save a significant amount of money on your contract renewal costs.
Your contract renewal date is a golden opportunity for your business to shop around for the most competitive energy deals.
Unfortunately, most businesses fall foul of clever renewal policies by their own suppliers and end up locked into new contracts on prices up to three times more expensive than current market rates.
Our free renewal reminder service will help you to plan for your contract renewal date, avoid the renewal pitfalls and ensure that your business is free to compare prices and switch to the supplier offering the best deal.
How much will your renewal reminder save me?
We are confident that if you follow our 3 step guide you will reduce your contract renewal costs by up to 50%, in some cases more.
The reason for this is fairly simple. Most energy suppliers have adopted a two-tier pricing strategy. Acquisition prices are competitive and designed to win new customers. Retention, or renewal prices, are high and designed to retain customers on healthy margins.
Renewal quotes are up to three times more expensive than rates offered to new customers by the same supplier. Recently one of the big six energy suppliers was renewing electricity customers on two year contract rates of around 24p per kilowatt hour. Those customers could have paid around 9p if they had shopped around.
Loyal customers pay more – to get the best deal businesses need to switch suppliers.
How does your renewal reminder work?
In three easy steps our renewal reminder will help you to take control of your energy contracts.
Step 1 – Enter your renewal details
Find out when your current electricity and/or gas contract is due for renewal and enter the details into the form provided.
Step 2 – Send your termination letter
To prevent your supplier from automatically renewing your contract and prevent you from switching to a better deal you will need to send them a termination letter. We have provided you with a template which you will need to print off, fill out and send to your supplier.
Step 3 – We will send you a reminder
We will email you a reminder 3 months before your contract renewal date. This will give you plenty of time to shop around for your new energy contract. During this period we suggest you contact your supplier and ask them for their best renewal price and our calculator will compare your renewal price against quotations from other suppliers.
What is an energy contract?
We will email you a reminder 3 months before your contract renewal date. This will give you plenty of time to shop around for your new energy contract. During this period we suggest you contact your supplier and ask them for their best renewal price and our calculator will compare your renewal price against quotations from other suppliers.
Why is an energy contract different?
Energy contracts are often referred to as ‘evergreen’. This means that the contract will automatically renew itself for a further term (typically one or two years) at the end of each contract period without you having to do a thing.
Most businesses are to busy to notice this, so they don’t get a chance do not shop around for better deals and end up being ‘rolled’ into a new contract by their supplier. This suits suppliers because it’s an ideal opportunity to increase prices (without you noticing) and retain your business on healthy margins.
If you wish to leave this type of contract you can only do so within strict time limits near the renewal date of the contract. The supplier will expect you to notify them, via a termination letter.
If you wish to leave before then, a termination fee will nearly always be applied.
How do I know if I’m in a contract?
The selling of energy contracts to businesses is currently an unregulated marketplace.
If you have ever signed anything from your supplier in the past, ignored a letter from your supplier in the past or had a telephone conversation with an ‘energy consultant’ or ‘broker’ the likely hood is that you will be in a contract with your current supplier.
It is in the best interest of your business to contact your supplier immediately and find out. You cannot begin to take control of your energy costs until you know your contract status, renewal date and cancellation requirements.
If you have recently moved into new premises and have not agreed to a contract wit a supplier direct or through an energy salesman you should click here to compare prices and contract with the supplier that offers you the best deal.
When is my contract renewal date?
This will be the date your new contract will start from. If your existing contract with your current supplier ends on 30/11/2008 your contract renewal date is 1/12/2008.
The contract renewal date will give you the opportunity to shop around for a better energy deal.
Your renewal date could be found on a copy of your original contract or on the details of your suppliers contract renewal offer. If in doubt please call your current supplier immediately.
What is a termination notice letter?
To prevent your current supplier from automatically renewing your contract you are required to give them notice of your intention to cancel your current contract when it finishes. This will need to be done in accordance with their contract terms & conditions.
A termination letter is the best way for you to give this cancellation notice. Business energy exchange will provide you with a termination letter template. We strongly advise that you refer to your original contract terms & conditions or contact your supplier to establish where this letter should be sent.
If you do not send a termination letter your current supplier will renew your contract on higher prices and prevent you from switching to another supplier offering a better deal.
Note: If you send in your termination letter your current supplier will continue to supply your energy up until the day your current contract ends. If you switch to a better deal your new supplier will supply you from your contract renewal date onwards.
What will a renewal offer look like?
Some time before your contract renewal date your supplier will write to you to notify you of their new rates (price increases!).
Let’s get one thing clear – the supplier does not want to draw your attention to the fact that they want to charge you higher prices for your new contract. These letters are often disguised and headed as follows:
British Gas - “We’ll protect your new prices for two years”
Npower - “Secure your prices for 12 months and avoid future increases
Scottish & Southern - “Electricity renewal offer”
EDF Energy - “Offering your business more”
These price increase letters are very successful – British Gas stated proudly in its annual report that it retained 95% of its small & medium sized customers in 2006.
Most businesses do not recognise the importance of these letters from their suppliers. The letters do not say what percentage the increase is or how much more it will cost you.
What should I do if I get a renewal offer?
If your supplier sends you a renewal offer, look at it immediately – it may only be valid for a short period of time.
Our advice is to reject the offer by sending a termination letter to your supplier. This will ensure that you are not locked in on the renewal prices and free to shop around for a better deal.
You should start shopping around for a new energy contract at least 3 months before your contract renewal date. This would be a good time to ask your supplier for their best renewal price.
Business energy exchange will help you to compare your supplier’s renewal offer against quotations from other suppliers and then switch you to the best deal.
What will happen if I do nothing?
Unfortunately in many cases customers miss their renewal date or accept price increases through inertia because they’re to busy trying to run their own business.
If you do not reject the renewal offer from your current supplier within the required termination window the supplier will deem it as an implicit and unconditional acceptance for another contract term. In short, if you do nothing you are accepting their new contract.
You will not be able to shop around for a better deal instead, stuck on higher prices weather you like it or not.
Are my details safe with you?
We take every effort to ensure that any information entered into our website is stored in a secure place and will not be shared with any third parties without your prior consent.
Business energy exchange is registered under the Data Protection Act 1998.