Gerard Duggan

Archive for February, 2012

All commercial businesses have a contract associated with their gas and electricity meters. However there are occasions when a business can roll out of contract. In such circumstances their current supplier places them on what are known as ‘deemed rates’ which should really be called uncompetitive rates!

Out of contract rates can be as high as 40% above the going market rate. These rates can be challenged but how would you know if your current supplier doesn’t inform you.

By using a commercial utility broker like Utilitrack we can investigate your current rates and the contract associated with the deal you are currently on. With a very basic brief from you we can check if there is a better rate for your business.

If you are out of contract we can arrange to obtain the best market rate renewal. If you are in contract we won’t attempt to break that deal but will track it to obtain the best renewal rate. A recent example illustrates the point: a firm of solicitors in Hull were unaware they were out of contract until Utilitrack checked. We invited their current supplier to quote a contract rate and in the process they offered prices 40% less than the client was paying. A huge difference! However on further investigation we found the market rate was 7% lower than that price. The client saved nearly £400 on this meter – one of their seven electricity meters. A similar scenario with one of their gas meters saved them over £1200.

If you’d like me to check your rates please call me on my direct line 01234-267883.

With only a few exceptions the UK energy company collects its client’s payments via Direct Debit. Most utility based businesses, energy, telecoms and water all favor this method principally as it facilitates a smooth cash flow and the reduction of processing costs.

Some people are concerned about the apparent access this method of payment gives a supplier to their bank account. However there are very strict regulations governing the conduct of the way these transactions are set up and conducted. The banking community underwrites the entire process with a Direct Debit (D/D) Guarantee Scheme.

There is a distinct advantage for you choosing to have your utility account paid by D/D, that is, much greater choice of suppliers with more competitive pricing! Only a few suppliers allows its client’s to pay by cash or cheque whose cash/cheque rates are more expensive than the equivalent direct debit tariff.

So if you are on a cash/cheque rate for your energy you are missing out on a better deal. If you’d like to discuss this issue or any other relating to your commercial energy contract please do call me on my direct line 01234 267883.