Valda fixed price

Heisenberg01

Family member started a buisness last October, Valda got hold of her and convinced her she had to take a 3 year fixed price, as that was all that was available due to energy crisis.
At firs wasn't too bad with energy support, but since April it's got pretty bad, she's paying 76p per kWh
 She asked them if they would lower the price and they basically laughed at her, told her nothing she can do and bye.

Come winter when the heaters are on it will put her out of buisness.

Anything she can do do get out the contract?

CSI_Yorkshire

What does the contract say about it?

Heisenberg01

Not sure, I'll find out, but it's gonna b watertight I assume.

I was just hoping that at the time, which was highest energy costs there might have been some sort of rules around companies giving fixed deals out with costs so high.

MattMattMattUK

Heisenberg01 said:

Not sure, I'll find out, but it's gonna b watertight I assume.

I was just hoping that at the time, which was highest energy costs there might have been some sort of rules around companies giving fixed deals out with costs so high.

Unfortunately as it is a business contract the customer is supposed to be able to undertake their own analysis of what is available on the market. 

How long is left to run on the contract? Has she looked to see what the exit fees are if she wants to terminate the contract early? 

CSI_Yorkshire

Heisenberg01 said:

Not sure, I'll find out, but it's gonna b watertight I assume.

I was just hoping that at the time, which was highest energy costs there might have been some sort of rules around companies giving fixed deals out with costs so high.

Don't know what you mean by watertight, but there could be a break clause / exit fee etc.  If there is, then work out if paying that fee is worth it based on what other contracts you can get.

No real rules on fixed commercial tariffs - if you are competent enough to run a business, you are assumed to be competent to deal with contracts, costs etc.

matt_drummer

Isn't that the point, and the risk of a fix?

You win some, you lose some, at least they knew what they were going to pay.

If it was ok at the time of signing the contract, why isn't it ok now?

Buyer's remorse I assume?

Heisenberg01

Thanks for the replies.

It was what it was at the time, highest prices ever, with the government support it was manageable, there is next to zero support now for buisness.

Not sure if there's an exit fee, but with over 2 years left it will be unworkable I'm sure.

Just been looking at her usage on the app, it's so inaccurate it's scary, some days when she's shut on a Sunday

she's averaging 8kwh, only things running is 2 fridge freezers and a wine cooler.

Even at 76p kWh, with only 24 hours a week of operating a grand a month seems way off

Robin9

She can make a stab at her consumption - what was the meter read last October - what is it now ?

8kWh for fridge freezers etc is quite possible.

CSI_Yorkshire

Heisenberg01 said:

Just been looking at her usage on the app, it's so inaccurate it's scary, some days when she's shut on a Sunday she's averaging 8kwh, only things running is 2 fridge freezers and a wine cooler.

Even at 76p kWh, with only 24 hours a week of operating a grand a month seems way off

How do you know it's inaccurate?  Are they using different numbers in the app than on the meter?  Do they say "actual", "estimated", "smart" or something else on the bills/app?

There's not much help we can give to "we're actually using this amount of energy at the price we signed up to, but now it seems a bit expensive"