Businesses are being “stung” by expensive energy contracts because they fail to renew or cancel them on time.

Energy broker ENER-G Procurement claims some organisations are making costly mistakes when the deadline for their energy contract looms.

It is launching a free guide offering advice on how to avoid expensive ‘out-of-contract’ and ‘deemed rates’, which can hit firms if they don’t re-negotiate or give enough notice about cancelling their energy contract.

Mark Alston, General Manager for ENER-G Procurement said: “Suppliers require between 30 to 90 days’ customer termination notice to switch contract. Many businesses don’t realise this and are leaving it too late.

“Most organisations faced a 20% increase in renewal costs last year and the upward trend continues, so there is a clear financial imperative to test the market in an attempt to mitigate potential cost increases.”