Don't fall into the rollover trap
If you run a small business and pay business gas and business electricity bills,
you're at risk of falling into the roll-over trap and paying well
over the odds for your energy supply.
What is the roll-over trap?
Usually, business energy contracts work on a fixed-term basis.
Your business energy supplier will sign you up for a fixed period
between 1 and 3 years or, more rarely, 4 to 5 years.
As your business energy contracts come up for renewal, you enter
a period during which you can switch to another tariff or supplier.
This period is called your'switching window'.
The length of your switching window will vary depending on your
energy supplier. It can be as long as 4 months before the end of
your contract, or as short as 30 days. Within this window, your
energy supplier is obliged to send you a renewal
letter, stating the date your contract
will automatically renew and what your
new prices will be.
This is where many small businesses fall into the
roll-over trap. If you receive your renewal notice but
don't seek out better prices, your contract will automatically
roll-over into a new, fixed-term contract that you can't get out
What's wrong with automatically rolling contracts?
On the face of it, automatically rolling energy contracts might
sound like a goodthing. After all, if your
energy bills are out of sight, they're out of mind.
However, letting your contracts roll-over could be costing your
business thousands of pounds a year in overpriced gas and
At Make It Cheaper, we've found that our customers' renewal
rates are, on average, 30% higher than their original prices. In
fact, it's not unheard of for our customers to have
their rates increase by over 100%.
So, if you let your contracts roll-over even once, you could be
paying significantly more than the market rate for business gas and
How do I avoid the roll-over trap?
First and foremost, you should keep an eye-out for your contract
renewal letters. But beware - renewal letters can be very easy to
miss. They often look like marketing material and aren't marked in
any particular way to highlight their urgency.
If you want to be safe, contact your business energy supplier and
ask them when your contract end dates are. Then give us a call on
0800 970 0077 and we'll set a reminder to call you back when your
renewal date approaches. This way - you can rest safe in the
knowledge that we'll never let your contract automatically
roll-over unless you want it to.
What should I do when my switching window opens?
As soon as your switching window opens, call us on
0800 970 0077 so we can help you find a better deal.
It's our job to compare business gas and electricity prices from a
comprehensive range of energy suppliers, including all of the big
6, to find you the best business energy rates on the market.
Find out more about how to switch your
business gas and how to switch your
business electricity and how your business could save up
to 30% on its energy bills in just one call.