Wednesday 7 March 2012

Businesses ‘stung’ when renewing energy contracts

Businesses ‘stung’ when renewing energy contracts

Businesses are being "stung" by expensive energy contracts because they fail to renew or cancel them on time.

Energy broker ENER-G Procurement claims some organisations are making costly mistakes when the deadline for their energy contract looms.

It is launching a free guide offering advice on how to avoid expensive 'out-of-contract' and 'deemed rates', which can hit firms if they don't re-negotiate or give enough notice about cancelling their energy contract.

Mark Alston, General Manager for ENER-G Procurement said: "Suppliers require between 30 to 90 days' customer termination notice to switch contract. Many businesses don't realise this and are leaving it too late.

"Most organisations faced a 20% increase in renewal costs last year and the upward trend continues, so there is a clear financial imperative to test the market in an attempt to mitigate potential cost increases."

Written by

Bruna Pinhoni

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