First premises, confused about utilities.

ChasingtheWelshdream

Hi,

I have just started a tenancy for a council-owned workshop. During the handover, the meter readings were recorded and I was told who the current supplier is, and that they would contact me directly.

The following day my phone was ringing off the hook from 8am, with calls from energy brokers trying to get me to sign up. Getting a bit fed up, I start to ignore the calls, but then they started to come from local and mobile numbers. I had to answer these as they could be from customers, so I found it rather sneaky that they went straight through to a call centre. 

 I don’t understand how my name ended up on a list as a new tenant for lots of brokers but I dislike cold calling.  

I am new to this, and was just going to use the existing provider. Should I be waiting for the electricity company to contact me or should I be doing something else?

My business is only part-time and I will only be using lights and a kettle. 

I am starting to feel rather overwhelmed!

Savvy_Sue

I don't know how your contact details got out 'into the wild', but it would be sensible to contact the current provider and ask what contract you are on at the moment, and what's their best offer? 

Because the default contract may be pricey, and if you are willing to sign up for a fixed term contract (I don't know what the minimum will be, 1 2 or 3 years) then you may well be able to get better rates. There is no energy cap for businesses / business premises, and rates rose astronomically 2-3 years ago, I'm not sure if there's been any reduction since I last had a contract to consider. 

And a broker may help you find your way through the maze of offerings, because otherwise you've got to do the legwork yourself. 

However, the key thing you need to understand is that this is going to be a B2B contract. Which means that you don't have the protections you may be used to in a Consumer contract - you won't have a cooling off period, you will be tied in for the whole period you sign up for (even if you decide to end the tenancy on the workshop). 

One possible advantage of the 'default' contract you're currently on is that there may be a notice period, or that it will automatically end when you leave the workshop. 

ChasingtheWelshdream

Thank you Sue, that’s really helpful. I hadn’t realised I would need to sign for a contract actually. I assumed there would be the business equivalent of a standard variable rate so I could see how the costs are after the first month/quarter and go from there. Oops. 

I have heard I could get stung with astronomical standing charges for being a low user, so I will ring the company tomorrow!

daveyjp

Councils will be under a very large contract (possibly even with other local authorities) and as soon as a property changes they will inform their supplier.

As you are a low user you need to ensure you won't be paying a huge standing charge for provision of supply you will never use, for example three phase, thats not needed for lights and a kettle.

ChasingtheWelshdream

I think there is three phase as the units were built as workshops. I don’t think I can change that. Does that mean I will have no option with the standing charge? 

The previous tenant used it as an occasional office though so would have been a low user too. It has been vacant for about 3 months, but all I have been told is that I will be contacted by the supplier.

Now I’m a bit worried that I may have been put on a contract by default, as soon as I started the tenancy?

I worked from there this evening and it was freezing but I too nervous trying the heaters until I know what costs I am looking at. 

Phone calls at 9am tomorrow I think!

ChasingtheWelshdream

Ah, reading up, I think I must be automatically on a ‘deemed contract’ as soon as the council handed over the tenancy. Which I’ve just read can be up to 80% higher. Eep. I only got the keys last week, it’s been a bit manic actually moving in but I need to deal with it asap!

martindow

Just to add, when you are looking for a broker I would try to get recommendations on who to approach.  I would be very wary of companies that feel the need to make cold calls to get business ...

ChasingtheWelshdream

I have spoken to the current electricity provider today who was very reassuring about what I need to do, and that I have not been automatically signed up to a contract. They explained the process that needs to happen before I can look at whether I want to change providers.

I will definitely not be using a broker who cold calls, especially those that disguise their identity under a local area code or mobile number. Several times a day. To me that is just sneaky. 

Savvy_Sue

You can now register mobiles on the Telephone Preference Service, if it helps ... 

daveyjp

If you are considering a broker ask your local small business advisers, Chamber of Commerce etc as they may have links with trusted companies.