Why should businesses be wary of energy rollover contracts?
Business energy rollover contracts could cause you to pay more than you should for your energy.
No business owner likes having to pay for business energy. Gas and electricity payments can take a significant chunk out of your earnings, especially if you don’t take the time to find the right deal for your organisation and workplace.
Many businesses fall into the trap of being stuck in a rollover contract, which will result in you paying more than you should.
Even worse, many business gas and business electricity deals are making use of hidden business energy commissions to charge businesses more than they should be paying.
Being smart about your business energy security and deals is vital, so we’re taking a closer look at the problem with rollover contracts and the steps you can take to avoid a mis-sold energy contract.
The problem with business energy rollover contracts
Rollover contracts are an expensive pitfall that businesses don’t want to fall into. When business gas and business electricity deals are about to end, action needs to be taken. You need to cancel your energy deal within a set period of time, otherwise, your energy supplier will automatically sign you up to a new contract – this is what is known as a business energy rollover contract.
The contract you’re automatically placed on will not be good value for money or offer a competitive tariff. What’s more, you could find yourself stuck with it for at least a year.
There is some protection in place if your business is a micro-business, as around 60 days before your contract is due to end, your energy supplier must send you a letter with all the details of your renewal offer and the rollover contract you’ll be placed on if you fail to act. This will give you time to make preparations to avoid a rollover contract. You also cannot be rolled over to a new contract that lasts longer than 12 months.
Rollover contracts are controversial because it’s all too easy to fall into one. That’s why it’s so important for businesses to keep their eye on the ball when it comes to business energy security and prices.
Avoiding hidden business energy commission
Business energy rollover contracts aren’t the only thing that businesses need to bear in mind when looking for business gas and business electricity deals – there is also the issue of hidden business energy commission to take into account.
Business energy security is important for organisations across all industries and of all sizes because there is a lack of official regulation in place. This makes it easy to fall for a mis-sold business energy claim, leading you to pay more than you should for your gas and electricity.
Businesses don’t have the security of knowing that all agreements must be clear and transparent, as many unethical brokers take advantage of the lack of regulation by including hidden business energy commissions in their contracts. This helps brokers increase their profits by exploiting their clients.
It is estimated that businesses across the UK have been paying too much for their energy, by as much as hundreds of millions of pounds. Public bodies, companies, and charities in the UK spent £25 billion a year on energy, and a significant chunk of this could be made up of undisclosed fees, according to Ofgem.
This has led to many businesses taking back their business energy security by filing a mis-sold business energy claim. This aims to undo the damage caused by a mis-sold energy contract and help businesses win back the money that they never should have paid in the first place.
If you think that you’ve been victim to a mis-sold business energy claim, the time to act is now. Get in touch with Winn Solicitors by visiting https://www.winnsolicitors.com/energy-mis-selling-claims