Whilst domestic customers, as part of their consumer rights, can cancel their contract without giving a reason for 14 days, this does not work in the same way with commercial contracts. This is because commercial suppliers, upon agreeing your deal with you, enter into a contract themselves and purchase all your energy upfront.
When looking for your next energy contract, it’s good practice to think thoroughly about what your business needs. Here at Valda Energy, we’ve compiled our top tips to consider before agreeing a contract:
1. Do your research
It is important that you’ve found the best price for your business, as you’ll be paying this for the duration of your contract. You can do this through an energy broker or directly through comparing suppliers.
2. Check your renewal date
60 days before the end of your energy contract, your current provider will inform you of the charges that will apply at the end of your energy contract. If you haven’t started to look for a renewal contract this is the time when you should begin.
3. Consider duration
The duration of your contract is an important thing to consider. Make sure you agree a duration that works well for your business, considering your budgets and financial year.
4. Watch market conditions
As the energy market can be volatile with prices fluctuating a lot, it might be better to fix now as prices offered by a supplier may only be valid for a short period of time.
5. Ignore the price cap
A lot of business owners don’t realise that energy prices falling with price cap updates, as we often see covered in the news, only applies to domestic energy and will have no impact on commercial energy prices.
If you’ve made the decision to agree a new contract it is important to know when you can switch supplier. There are two main times when this can happen:
If this applies to you, check out our blog on how to switch energy providers.
© 2024 Valda Energy - All rights reserved.
