How much is your renewal?

Customers need to be wary of not ignoring their renewal letter when it arrives from their current business electricity supplier.

A number of suppliers in the UK will tend to offer a renewal rate that is 30-40% in excess of the current retail price with the primary objective that the customer will not act on the letter so that the contract can be rolled over onto more expensive renewal rates.

The suppliers renewal letter is very misleading... 

A supplier's renewal letter can be very misleading in the way that it presents the price to the customer by using terminology such as "Don't worry, we are protecting your business prices for a further 12 months". If this terminology is used in the subject header of the letter many customers will trust their supplier and assume that the electricity rates detailed within the letter are competitive and the supplier is offering their best price first time.

A supplier intends to place you on an expensive renewal rate... 

This is unfortunately the case as most suppliers will always try and put business energy customers on a expensive renewal rate hoping that the letter is filed away and it is only when the customer gets their first bill after the roll over that they realise how much their energy spend has gone up. Unfortunately in many cases it is then too late to act and the renewal has been assumed.

Read more about 'Avoid Expensive Business Electricity Renewal Prices' here

Be Wary of Your Renewal Rates

Customers need to be wary of not ignoring their renewal letter when it arrives from their current business electricity supplier.

A number of suppliers in the UK will tend to offer a renewal rate that is 30-40% in excess of the current retail price with the primary objective that the customer will not act on the letter so that the contract can be rolled over onto more expensive renewal rates.

Confirmed: Shopping Around Saves £38m

Shopping around and switching suppliers is confirmed to lead to significant savings after a government programme saved 130,000 homes a combined £38 million, according to The Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said consumers who doubted the benefits of changing suppliers should heed the findings of the programme.

The four-week Power To Switch campaign, launched by the Department for Energy and Climate Change (DECC) on February 16, urged people to switch energy companies and save money.

The DECC said 350,000 people had visited its website in the month after the launch, and 130,000 households had switched energy supplier. This was 80% more than over the same period the year before.

Businesses Risk Paying 40% More When Fixed Term Contracts Expire

Business energy users could find themselves inadvertently paying up to 40% more than necessary for their energy by overlooking the expiry date of fixed-term contracts, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said firms that failed to switch suppliers at the end of fixed deals were automatically flipped to expensive standard rates, often without realizing it.

“Businesses need to be vigilant and make sure they know when they are coming to end of their fixed-term contracts,” Mr Morgan said.

What Happened at the Weekend?

There was a lot of focus this weekend on the energy comparison sites that operate in ways to benefit themselves, as opposed to the customer who is trying to save some money. The best way to avoid this is to use a reputable energy comparison and switching service such as the Energy Advice Line. Energy efficiency was the main focus of Sunday with more stories about alternative energy, and the potential for changing the type of lightbulbs in the home.




Saturday 28th February

• 'Duped' energy comparison site customers should get money back, MPs say
• Consumers duped into switching energy tariffs by 'misleading' price comparison sites should get compensation, MPs claim
• Use the £200m sat on by energy giants to fund advice for small businesses, says network group

Sunday 1st March

• Wind farm near Lesmahagow secures millions of pounds 
• Sturgeon: UK Government should increase budgets for offshore wind energy development in Scotland
• Now Europe wants to ban your halogen light bulbs: Sales could be stopped as early as next year as part of energy-saving drive

Don't forget that if you have any questions regarding your energy supply, or energy in general then feel free to get in touch:

• Visit energyadviceline.org.uk and chat with an advisor
• Find us on Twitter, Facebook and Google+ 
• Call us on 0800 915 1800 (Mon - Fri, 9am - 5:30pm)

Business Electricity Price Review - Quarter 4 2014

Business energy users should consider using longer fixed-term deals following new figures released by Energy Advice Line showing that the relative cost of short and long-term contracts continues to narrow.

Firms that lock in the price they pay for energy for two or three-years, or more, are now paying a smaller premium than they did at the same time last year.

According to Julian Morgan, managing director of the price comparison, switching and advice service for energy consumers, longer-term contracts continue to be a more viable option than ever for firms as protection against price fluctuations in a volatile market.

81% of SMEs Don't Shop Around for Energy

Most small and medium-sized firms were missing out on savings by failing to shop around for their energy supplies, according to the Energy Advice Line following the release of a new report.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said he was shocked by the findings of the survey by independent supplier Opus Energy.

The survey found that 81% of small businesses failed to shop around for their energy supplies, while almost one-quarter were paying out-of-contract rates for their gas and electricity.

Significantly, 12% of businesses had never switched suppliers, opting to stay loyal to their existing energy company.

“It’s very clear, and actually quite shocking, to see that so many time-pressed small business owners and decision makers are simply not prioritizing their energy supplies,” Mr Morgan said.

“There’s no doubt that most of these firms are paying more than they need to by not switching – and depending on the size of the company and the sector they are in – this could amount to hundreds of pounds in lost savings each year.

“Those companies that have never switched suppliers have lost out the most, probably by a significant amount.”

Mr Morgan said many SME owners wrongly believed it was not worth their while to switch suppliers, and that it would be a long and complicated process to shop around.

Avoid Expensive Business Electricity Renewal Prices

Customers need to be wary of not ignoring their renewal letter when it arrives from their current business electricity supplier.

A number of suppliers in the UK will tend to offer a renewal rate that is 30-40% in excess of the current retail price with the primary objective that the customer will not act on the letter so that the contract can be rolled over onto more expensive renewal rates.

The suppliers renewal letter is very misleading... 

A supplier's renewal letter can be very misleading in the way that it presents the price to the customer by using terminology such as "Don't worry, we are protecting your business prices for a further 12 months". If this terminology is used in the subject header of the letter many customers will trust their supplier and assume that the electricity rates detailed within the letter are competitive and the supplier is offering their best price first time.