Some businesses choose to renew their energy contracts early. Smarter Business Head of Key Accounts Tim-Sealy Fisher explains why:
Tim explains that wholesale energy prices varied by up to 40% each way last year. This means that the date or time you enter into your contract becomes more critical than the actual contract negotiation.
Most customers believe that it is our service of negotiating contracts with up to 30 suppliers is that drives down their costs. However, the technology we use to monitor the market plays just as an important part. Our industry-leading technology tracks the energy market in real-time, helping us identify the right time to enter into a new contract and unlock savings on your energy unit costs.
The best time to renew your energy contract
You will receive a renewal letter a few months before your energy contract is due to expire. This renewal window is the best time to renew or switch energy contracts since you won’t incur any additional costs. This window period typically lasts for around 90 days.
Here are Tim’s top tips for energy contract renewal
- Don’t leave your energy contract renewal to the last minute – have your paperwork and plan ready so that you’re in a good position to act when the market is favourable.
- Avoid the risk of rollover or standard rates by ensuring that you renew or switch contracts before your contract end date.
- Renewal periods are the best time to switch energy suppliers as you won’t need to pay any charges for leaving your existing supplier early.
- Renewal letter prices are typically higher than your previous rates, so it’s worth renovating with your supplier or switching to a new supplier.