When does my energy deal expire?
Your energy deal expires one, two or three years from the date when your latest business gas or electricity fixed term deal started. Most UK businesses choose to lock-in business utility rates for a fixed period of time. Some businesses choose to lock-in for one year, others for two and three or more. Many businesses choose a one or two year lock-in, but many choose three plus.
The advantages of fixed term energy contracts is price certainty. When your business has very long fixed term contracts (e.g. three years plus), your business loses the ability to take advantage of lower energy prices (if prices move down). For example, in 2020, energy prices moved to historical lows and many businesses would greatly benefit from switching. However, if your business is locked in a long term deal, energy companies will charge your business exit penalties if you tried to switch.
Approximately 50% of UK businesses never switch energy providers. The proportion is even larger for smaller businesses. Small and medium sized businesses spend c. £6 billion on energy per year. Just a 10% saving would free up £600 million in operational cash.
We set up a very easy reminder service to help your business remember to switch. We call it Fix-it-DEAR™. The service is free and all you have to do is sign up. We will let you know when your fixed energy deal is due for renewal and help you find the lowest business energy prices.
What are deemed rates?
Energy companies impose deemed or out-of-contract rates on out of contract businesses. Deemed rates apply to businesses that have just moved into the business. Out-of-contract rates apply to businesses that have an expired fixed term contract.
Deemed and Out-of-contract rates are dangerous for your business’ cash health. These rates are the most expensive energy rates your business can possibly pay.
You can learn more about deemed rates here.
Please sign up below for our Fix-It-Dear renewal reminder. The service is free and sign up only takes a few seconds.