Business energy contracts

sturgess01

I’ve had numerous energy brokers offering me a new contract for the end of my existing contract in 2023.  They’ve offered me a deal where I can renegotiate the rate after 6 months of the new contract if say the wholesale price drops significantly but I would have to extend by another year. 

Am I better to sit tight and risk a much higher price or take the deal now and know what I will be paying?

pochase

If the wholesale price will increase significantly will they also be able to change the contract?

sturgess01

No it’s up to me to initiate. I can stick on that rate for the three years of I wish. 

pochase

SO what rates have you been offered?

sturgess01

40p/kWh, £2/day standing charge

pochase

Currently predictions are that the cap will start to decrease in April 2023 even so it will be only by a few percent.

I would have a problem with the three years. That will bring you into 2026, if I understand potentially even into to 2027.

Can you only renegotiate after 6 months or also earlier or later?

This might turn out as a brilliant deal. or as nightmare. How much energy do you use?

sturgess01

Yes it would take me into 2027. I’m pretty sure I can do it again but only after another 12 months and I would have to extend by a year again. 

Currently using around 1700kwh/month 

sturgess01

I can do it anytime after the fort 6 months.