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Out of Contract Rates: The Silent Profit Eater in Your Business

Updated: Aug 1, 2023

When your business energy contract comes to an end and you haven't yet agreed a new renewal or a switch to a different plan, you are instantly put onto your supplier's Out of Contract Rates. These rates can silently chip away your profits, with prices that are significantly higher than fixed rates. In this comprehensive guide, we aim to bring clarity to the often obscure world of Out of Contract Rates, explaining why they're higher and how your business can avoid this financial pitfall.

Understanding Out of Contract Rates: Why Are They Higher?

Out of Contract Rates are typically higher because they come into effect when a fixed-term contract ends and no renewal or switch to another plan has been agreed upon. Energy suppliers, without a clear understanding of a customer's energy usage, find it challenging to balance supply and demand. This uncertainty is mirrored in the elevated prices of Out of Contract Rates.

Navigating the Stormy Seas of Out of Contract Rates

Navigating Stormy seas of Out of Contract Rates

In the fluctuating energy market, a fixed-term deal serves as your safe harbour. By securing your energy prices for a specific period, you establish a pillar of stability and predictability in your budget. At The Smart Energy Company, we're your reliable navigator, guiding you through the intricacies of energy contracts and helping you secure more favourable deals.

The Impact of Out of Contract Rates on Your Business

You might be wondering, "What if I commit to a contract now and the market drops?" It's a legitimate concern. After all, securing the best possible deal is everyone's goal. However, the energy market can be as up and down as a roller coaster. It has its peaks and troughs, and predicting its next move can be as challenging as forecasting the British weather.

While we'd all hope that the market will continue to drop, the reality is that no one can predict with certainty. Unless you're a clairvoyant with a crystal ball, forecasting how the market will settle is a gamble.

Humour aside, the most prudent strategy is often to secure a fixed-term deal now. This way, you shield your business from potential price hikes and provide certainty for your budget. Yes, there's a chance that the market could drop, but there's also a chance it could rise. By securing a contract now, you're choosing the safe harbour over the turbulent seas.

How to Avoid the Pitfalls of Out of Contract Rates

Avoiding pitfalls of Out of Contract rates

As business energy is subject to the live market, any increases in prices tend to trigger instant price changes to Out of Contract Rates. Suppliers are quick to raise their prices at the first sign of market changes, but they're often slow to lower them, usually waiting until a competitor has reduced their charges. This seesaw effect can leave businesses in a precarious position, with costs rising sharply and falling slowly.

Our Commitment to Transparency: Publishing Out of Contract Rates

At The Smart Energy Company, we believe in transparency and fairness. We publish supplier Out of Contract Rates on our website, equipping businesses with the information they need to make informed decisions. If you're currently with a specific supplier, you can check out their Out of Contract Rates on our website.

If your business is currently out of contract or due to end soon, we invite you to complete our 'Quote My Business' form on our website. We guarantee savings within 2-5 days, and even the next day if a new contract is placed with the incumbent supplier.

If your supplier is not listed above, it may be because we don't have their current out of contract rates, or they haven't published them. You may need to contact your supplier to obtain this information.

Stay Ahead of the Curve: Updates on Out of Contract Rates

Staying Ahead of the Curve. Out of Contract Rates

We regularly update each supplier's page within our blog with the most recent information to help businesses stay ahead of the curve and avoid the pitfalls of Out of Contract Rates.


Ready to Secure Your Savings?

Don't let Out of Contract Rates chip away at your profits. Take control of your business energy costs today. At The Smart Energy Company, we're committed to helping businesses like yours navigate the complexities of energy contracts and secure more advantageous deals.

If your business is currently out of contract or due to end soon, we invite you to complete our 'Quote My Business' form. We guarantee savings within 2-5 days, and even the next day if a new contract is placed with the incumbent supplier.

Don't wait for the market to decide your fate. Make the smart choice for your business energy needs today.

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Have More Questions?

  • Is it possible to change multiple business utilities at the same time?
    Our switching service allows you to switch multiple utilities simultaneously. We have successfully assisted multiple businesses in the UK by helping them save on various services such as energy and water with savings within 2023 already over the £2 Million mark.
  • How much can I save on my business utility bills?
    The amount you can save on your business utility bills will depend on various factors such as your current usage, the rates offered by different providers, and the specific deals available in your location. However, our switching service is designed to help you find the best deals and save as much as possible. By comparing multiple suppliers and negotiating competitive rates, we aim to maximise your potential savings. Get in touch with us to discuss your specific needs and get personalised information on potential cost savings for your business utility bills.
  • How does switching business utilities work?
    Switching business utilities involves a straightforward process. Here's a general overview of how it works: Evaluation: Start by assessing your current utility bills and usage patterns. This will give you an idea of your current costs and help identify areas where savings can be made. Comparison: Use a switching service like ours to compare different utility providers in your area. We provide you with quotes from multiple suppliers, allowing you to compare prices, contract terms, and services offered. Selection: Based on the comparison results, choose the utility provider that best meets your needs and budget. Consider factors such as price, customer reviews, contract terms, and any additional services or benefits offered. Contract Negotiation: Once you've chosen a new provider, our team can help negotiate the contract terms and rates on your behalf. Switching Process: The switching service will coordinate the transition with your current supplier and the new provider. This may involve submitting termination notices, arranging meter readings, and scheduling the activation of new services. Enjoy the Savings: After the switch, you'll start receiving services from your new provider, typically at the agreed-upon rates. You will notice savings on your utility bills, providing you with cost advantages for your business. Remember, the exact process may vary depending on the type of utility you are switching, but our switching service aims to simplify the process and assist you at every step.
  • Who are the cheapest business utility providers?
    As market conditions and prices fluctuate regularly, it's challenging to provide an up-to-date and definitive list of the cheapest business utility providers. The prices we provide you are valid and available on the day of the quote and will provide most current and competitive deals available. Our switching service helps you compare prices and offers from multiple suppliers, ensuring you have the most accurate and relevant information to make an informed decision about your business utility provider.
  • What is energy procurement?
    Energy procurement is the process of sourcing, negotiating, and securing energy contracts to meet the specific needs of a business. It involves analysing energy consumption patterns, understanding market trends, and negotiating with suppliers to obtain the best possible rates and contract terms.
  • Why is energy procurement important for my business?
    Energy procurement ensures that your business secures energy contracts that are both cost-effective and aligned with your operational needs. Proper energy procurement can lead to significant cost savings, budget predictability, and reduced risks associated with volatile energy markets.
  • How does The Smart Energy Company help with energy procurement?
    We specialise in analysing your energy consumption, understanding your specific needs, and leveraging our relationships with over 20 suppliers to negotiate the best possible contracts on your behalf. Our team ensures you get optimal rates, flexible terms, and contracts that align with your business goals.
  • How do you ensure I get the best energy rates?
    Our team continuously monitors the energy market, staying updated with trends, price fluctuations, and supplier offerings. Coupled with our in-depth analysis of your energy needs and consumption patterns, we negotiate with suppliers to secure rates that are both competitive and suited to your business.
  • Are there any hidden fees associated with your energy procurement services?
    Transparency is a core value at The Smart Energy Company. We provide a clear breakdown of any commission we earn as a company when you come to agree any new energy contract. This is typically included as an uplift in your unit rate and paid to us by the supplier you chose to go to. Our primary goal is to secure the best energy deals for you, with no hidden costs.
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Very helpful, quick expert advice. We have been using Smart Energy for a while.


Ian Hughes

Operation Manager

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