Businesses advised to ‘act now’ in renewing energy contracts

UK businesses are being urged not to delay in renewing their energy contracts as they could face being switched to expensive ‘rollover’ tariffs. Mark Alston, Director of ENER-G Procurement is […]

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By Priyanka Shrestha

UK businesses are being urged not to delay in renewing their energy contracts as they could face being switched to expensive ‘rollover’ tariffs.

Mark Alston, Director of ENER-G Procurement is advising companies to “act now” – despite the traditional April contract renewals – in order to avoid being hit by heftier energy bills.

He says: “Energy buying has become a hugely complex task but for large energy users, energy bills now constitute one of their highest overheads, behind labour costs. Electricity prices have doubled in the last 10 years and gas prices have almost tripled.

“Time is of the essence – put off exploring the options and the best deals may have disappeared. Worse still, your business could face being switched to expensive rollover tariffs if the contract expires.”

Mr Alston suggests the process of switching suppliers could take up to seven months – with time needed for such things as market research and termination notice periods.

He adds: “Proactivity certainly pays; the earlier you act, the stronger position your business will be in. Armed with the right data and knowledge, buyers can promote their business as an attractive customer to the best supplier while last-minute buyers will face limited choices. ”

ENER-G will be offering advice at the Energy Live 2013 conference next Thursday.