It is reliably forecast that gas and electricity prices will
escalate by 15% this year, and Ofgem has criticised the big six energy
suppliers for rushing to increase prices when the wholesale price rises,
and being reluctant to lower them again. If businesses are content to
absorb increases of this magnitude without murmur - that is their
look-out. There are deals available now, guaranteeing cheaper prices,
less complicated billing and the freedom to switch supplier at just 28
days' notice. Being locked into contract, as we now are, gives us no
chance of exploring the options.
For the purchase of no other commodity would businesses be willing to sign non-negotiable contracts, written by the supplier giving him the right to raise prices, impose exit penalties if the customer wishes to leave before the end of the term and, in most cases, the right to roll over the contract into a new term. These contracts allow only a short window of, perhaps, three weeks during which customers have the opportunity of choosing not to renew, without incurring exit penalties. Artfully, this window may be fixed some six weeks before the actual termination date, so there's little way of knowing just when you have the option of seeing whether there are better deals going, and there usually are, and changing supplier.
Managers and Accounts Directors with an eye on profitability should not meekly accept the inevitability of the situation, but adopt a simple strategy, which is to contact your current supplier now and ask between which dates a notice of termination will be accepted, make a note of it in your diary and write down the name of the person you speak to. All such conversations these days are recorded for future reference, or you could record it yourself. Then when the time comes, notify them in writing that you do not wish to renew. There will be no exit penalty and you will be in the driving seat.
Simply making this enquiry will often set off alarm bells, and you may be surprised at the lengths they will go to to keep your custom, either when you ring them or when the window comes around. You will reap the benefit even if you never had any real intention of switching. If they are offering improved terms that you would be happy to accept, you can withdraw any termination notice you have served. But whatever you are offered, do not accept immediately. Look at the market. If you do switch, there will be no interruption of supply - the gas and electricity come from the national grids, the same engineers will ensure continuity and maintenance, it will just be a different company billing you for it.
There are various price comparison sites which may be useful. However, they exist on commissions from the phone and energy companies when you switch supplier as a result of their recommendation. Suppliers who don't give commissions may well not appear on their radar, but it is perfectly possible that, in wider or more impartial surveys, such as 'Which' magazine, these might well be the suppliers awarded top marks for value for money, clarity of billing and customer satisfaction.
The same observations apply to communications. Simply ringing to enquire whether you are in a rolling contract and when the window will occur, may provoke concessions, and a special team member will start trotting out goodies in order to keep you locked in. Of course you may be irritated and want to know why these terms had not been available to you in recent years.
There are very real opportunities to better your terms of supply, reducing line rental and making savings on call charges, and employing efficient alternatives for communicating with travelling executives or home workers via broadband. Your provider may not have made efforts to make you aware of the possibilities, or have them available at the right price. In the period when you can be free from contract, it is prudent to cast an eye over what is available. The market is now deregulated so other providers now have modem switchgear installed in exchanges and can offer an equivalent, or better service than BT. Line maintenance for alternative carriers is still carried out by the same Outreach engineers.
Reduced outgoings show up as increased profit on the bottom line, so they have the same impact on your business as increases in sales. There are hazards in rolling contracts, but they can be avoided. Contracts exist in which users do not get trapped because, after 12 months, all customers are free to leave with 28 days' notice. This keeps the company offering these terms constantly on its toes to monitor the markets and give the best value for money at any time.
Managers, looking to reduce outgoings, or accountants advising small/medium enterprise clients on trimming costs will benefit from my free advice, based on research of the market. Energy bills can be complicated to read. I can put them through a price comparator and alert you to a better deal. There is absolutely no charge for this service, your details will not be sold or passed on, and your privacy will be respected. You may well be surprised and impressed at what savings are possible to achieve
For the purchase of no other commodity would businesses be willing to sign non-negotiable contracts, written by the supplier giving him the right to raise prices, impose exit penalties if the customer wishes to leave before the end of the term and, in most cases, the right to roll over the contract into a new term. These contracts allow only a short window of, perhaps, three weeks during which customers have the opportunity of choosing not to renew, without incurring exit penalties. Artfully, this window may be fixed some six weeks before the actual termination date, so there's little way of knowing just when you have the option of seeing whether there are better deals going, and there usually are, and changing supplier.
Managers and Accounts Directors with an eye on profitability should not meekly accept the inevitability of the situation, but adopt a simple strategy, which is to contact your current supplier now and ask between which dates a notice of termination will be accepted, make a note of it in your diary and write down the name of the person you speak to. All such conversations these days are recorded for future reference, or you could record it yourself. Then when the time comes, notify them in writing that you do not wish to renew. There will be no exit penalty and you will be in the driving seat.
Simply making this enquiry will often set off alarm bells, and you may be surprised at the lengths they will go to to keep your custom, either when you ring them or when the window comes around. You will reap the benefit even if you never had any real intention of switching. If they are offering improved terms that you would be happy to accept, you can withdraw any termination notice you have served. But whatever you are offered, do not accept immediately. Look at the market. If you do switch, there will be no interruption of supply - the gas and electricity come from the national grids, the same engineers will ensure continuity and maintenance, it will just be a different company billing you for it.
There are various price comparison sites which may be useful. However, they exist on commissions from the phone and energy companies when you switch supplier as a result of their recommendation. Suppliers who don't give commissions may well not appear on their radar, but it is perfectly possible that, in wider or more impartial surveys, such as 'Which' magazine, these might well be the suppliers awarded top marks for value for money, clarity of billing and customer satisfaction.
The same observations apply to communications. Simply ringing to enquire whether you are in a rolling contract and when the window will occur, may provoke concessions, and a special team member will start trotting out goodies in order to keep you locked in. Of course you may be irritated and want to know why these terms had not been available to you in recent years.
There are very real opportunities to better your terms of supply, reducing line rental and making savings on call charges, and employing efficient alternatives for communicating with travelling executives or home workers via broadband. Your provider may not have made efforts to make you aware of the possibilities, or have them available at the right price. In the period when you can be free from contract, it is prudent to cast an eye over what is available. The market is now deregulated so other providers now have modem switchgear installed in exchanges and can offer an equivalent, or better service than BT. Line maintenance for alternative carriers is still carried out by the same Outreach engineers.
Reduced outgoings show up as increased profit on the bottom line, so they have the same impact on your business as increases in sales. There are hazards in rolling contracts, but they can be avoided. Contracts exist in which users do not get trapped because, after 12 months, all customers are free to leave with 28 days' notice. This keeps the company offering these terms constantly on its toes to monitor the markets and give the best value for money at any time.
Managers, looking to reduce outgoings, or accountants advising small/medium enterprise clients on trimming costs will benefit from my free advice, based on research of the market. Energy bills can be complicated to read. I can put them through a price comparator and alert you to a better deal. There is absolutely no charge for this service, your details will not be sold or passed on, and your privacy will be respected. You may well be surprised and impressed at what savings are possible to achieve
