CH & SB: Comparison service for utility bills

Savvy_Sue

Ypaymore wrote: »

Useful sticky on this subject here: http://forums.moneysavingexpert.com/showthread.html?t=49333

Since the two threads are cross-referencing each other, it's probably time to merge them ...

fatboy88

Robboseven wrote: »

Most commercial gas contracts have two potential stings in the tail.

The first one is widely known but still catches thousands of companies out - the contract roll-over. You get to the end of your contract and forget to terminate it within the suppliers 'renewal window' and they roll the contract over for another 12 or 24 months at 'deemed rates' i.e. much higher rates than if you had negotiated with them.

The other one is less well known but in the current difficult trading conditions is becoming more common and that is the 'take or pay' clause. Commercial gas contracts usually stipulate a minimum and maximum quantity of gas that you will consume based on your gas meters' consumption during the previous 12 months, as held on the National Grid (formerly Transco) database. Not only can this number be wildly inaccurate but should your consumption reduce (either due to a slowdown in business or through energy saving measures) they can invoice you for any unused gas. No they can - really.

I work as a commercial energy consultant and I know personally of instances where companies have been billed between £5k and £30k. I'm not touting for business, just making you aware that if you run a small business and you have an energy contract, make sure you know what you are signing.

I personally feel that energy suppliers are getting away using dubious and underhand methods in many areas. Ofgem appear to be a bunch of self serving, toothless, jobsworths who like nothing more than putting together another 250 page report and talking about issues rather than actually doing something about them.

Rant over, just be careful.

I've got a letter from the energy committee from whitehall who are looking into this and supposed to be issuing the report something soon so presume next year. I've been complaining about these contracts for years as i do a lot of contracts for friends and family who dont speak very good english. I'm not expecting much but its a start i presume

Savvy_Sue

Since we now have an article and recent discussion here, I'm going to lock and unstick this thread.