TALKING SHOP
Switch and Save on Energy Adam Bernstein - I
n just a short period of time, the world has become utterly dependent on technology. Our voracious appetite for energy consuming devices causes much angst and hardship as utility prices go ever higher. And it’s not going to get any better.
As recently as June 2011, energy industry regulator, Ofgem, has said that it
wants to ‘radically overhaul’ the energy market. It’s put the big six power companies on notice that their incredibly complex tariffs are going to be put under the microscope – again – over the next few months. So with the background of rising prices can business do anything to lower their energy bills?
Energy is different Unlike the world of telecoms where users choose different technologies to
make and receive calls, energy provision is much simpler – gas and electricity goes into a network and users take it out. The issue really is a question of who provides the utility, whether they’re trusted to bill correctly and do their contracts stack up.
Or is it?
Be Proactive Savings can be made if you overcome inertia. Suppliers often rely upon inaction from their customers when it comes to pricing. The supply of energy is no different. Tariffs are always changing so what seemed like a good deal when you signed up may be hopelessly out of touch with the market price now. Whether it’s banking, insurance, telecoms or utility provision, it’s worthwhile shopping around at least once every year. Loyalty rarely helps your bank balance.
Energy companies are obliged to give notice of tariff changes and the end
of a contract under rules that were introduced by Ofgem in January 2010 but which took effect in April 2011. But this only applies to domestic users and micro-companies (under 10 employees, annual gas usage under 200000 kwh or electricity usage under 55000 kwh).
If that letter doesn’t arrive – or you fail open or act upon it – you could be
automatically rolled over into another contract with no exit route; householders in contrast can switch supplier on demand. Be mindful that to change to a different supplier you don’t have long to
act; sometimes you may only have a 30 day period in which to instigate a switch. Further, the window of opportunity when a switch can be made can come (and close) when it’s least expected – sometimes 90 to 120 days before the contract expires. Failure to give the right notice at the right time can leave you rolled into a new contract with rate of the supplier’s choosing, which more likely than not will leave you with more expensive unit charges.
However, according to energy consultancy
Utility-options.co.uk, if
businesses can prove (or debate long enough) that the letter wasn’t sent some utility suppliers will admit defeat and break a rolled over contract. Arguably, if a letter was sent there should be an electronic reference to it; you should request a copy under data protection rules.
Check your present deal and don’t delay Before you can make any changes you need to be certain of the deal
you’re on, the terms of the contract you’ve signed up to including the rate you are being charged, whether there’s a standing charge, and most importantly, what the notice period is.
46 • FOOTWEAR TODAY • SEP 2011
MAYTEMBER 2011
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