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Small business electricity prices – they all rolled over and some fell out!

Small businesses, by definition, are often more nimble than their languorous, big business counterparts.  They are able to manoeuvre faster and sharper… more equipped to adapt to a shifting economic terrain. For we know, by now, that we are living through the rockiest period of economic activity in living memory.  Many businesses, regrettably, are finding it too hard and unforgiving a landscape in which to do business.  Others - especially micro-businesses - are able to make swift changes in their structure, more able to adapt and survive. A great part of this cost-cutting and fat-trimming exercise is energy supply, and for SMEs (small to medium enterprises), a considered look at the array of small business electricity prices is one immediate way that savings can be made, ultimately making that business more cost-effective, and resilient to  the buffeting forces of this recessionary period. For instance, if no action is taken at the end of an energy contract, energy companies simply “roll over” their customers automatically into another contract period, and at a rate that may no longer be competitive.  In 2010, Ofgem created reforms specifically for such SMEs.  Reforms included a restriction on the duration of roll over contracts, in order to allow companies to exit from uncompetitive deals.

Small business electricity contracts

As a micro business, a roll over contract is now no longer than 12 months, allowing scope for a return for small businesses to the energy market, to secure a potential move and better rare.  Equally, at any point during your contract, you can let your supplier know that you do not wish to roll over.  Equally, within the final months of your contract, your supplier is also compelled to let you know the renewal terms and options available to you, in order for you to make an informed decision.  Bear in mind, however, that if you have indicated you do not wish to roll over, but make no alternative arrangement, your supplier may then put you on an “out of contract” rate, which may well be even less competitive. It’s something of a minefield.  And of course those bigger business beasts may well have entire departments and staff who can keep track of such affairs.  For smaller business, where all hands are likely to be at the pump, it may make business sense to let Utility Helpline manage that process for you and secure the best small business electricity prices, ensuring your business is always on the most competitive tariff.  Better standing up to business electricity suppliers than simply rolling over…

Published by Utility Helpline on (modified )