Contract care with energy suppliers
No say in the matter. Of course your business can’t survive without energy - gas, electricity etc. However it’s a very competitive market, so if the last bill was shockingly high, you know that you’re free to cancel the contract and take your business elsewhere. Not necessarily...
Auto renewal. The fact is that some business gas and electricity contracts are automatically renewed with the existing supplier unless you serve written notice to cancel well in advance, e.g. at least 90 days before renewal. Miss the deadline for cancellation and you’ll be locked into the supply contract for another year. This is called a perpetually renewable contract and it only benefits the energy supplier. Trouble is, business users aren’t protected like individual consumers - you’re expected to take a greater interest in your energy bills and scrutinise the small print.
What to do. Until energy suppliers make the cancellation process much more transparent, we’d recommend that you look for the section in the contract called “Cancellation”. It will almost certainly say by when a cancellation notice must be received and in what format. Then make a note in your diary a week before that date. If all else fails and you’re locked in for another year, it will pay you to negotiate with your supplier. By better understanding your energy requirements, they may be able to transfer you to a more affordable tariff.
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