Energy contract for a Dry Cleaners, a check list
There are many points to consider when considering your next energy contract. And some you may not be aware of:
- How long should you fix your energy prices for?
- How many different energy companies have you looked into?
- Do you know which direction gas and electricity prices are currently heading?
- Do you know much about the energy supplier you are thinking of using?
- Have you read the small print in the energy contract before signing?
- Are you aware that an energy contract for a Dry Cleaners business is legally binding?
Call us for clarity on your next energy contract – 020 3372 6517.
How long should I fix my energy contract?
We advise that this should be your personal preference and what you feel comfortable with.
At Perfect Clarity, we have only ever recommended a 4-year contract to a few clients. And these have been for gas or electricity meters with very small annual consumption. Much less energy than a Dry Cleaners would use.
Should you ask us to look into options for your business, what can you expect? We will send you a price sheet that lists the best options we have from our suppliers for 1, 2 and 3-year contract terms.
Energy prices are usually working their way upwards, but they do fall occasionally. Depending on the electricity or gas market at the time, we may recommend you look short or longer term (3 years). However, we will make it very clear. If you are not comfortable with a 3-year contract, then you should simply opt for 1 or 2 years.
Some energy suppliers and brokers may talk up the benefits of a 4 or 5-year energy contract. We think this is excessive.
This is due to the difference between domestic and business energy contracts. At home, you are used to the early termination clause that allows you to leave a contract part way through. And you only have to pay a nominal fee of £30 or £50 to do so.
This isn’t an option with energy contracts for a business premises.
The contract will be legally binding until the last day. This is why you must be happy with the contract you commit to.
A large number of suppliers to choose from for your energy contract
You can look at some websites and get prices from half a dozen or so energy companies. But do you know how many other potential suppliers you haven’t checked? Or if better energy prices are available from the suppliers you have checked?
At Perfect Clarity, we work with all the major energy suppliers, and many more. We have prices available from over 20 energy suppliers. We do provide clarity, after all.
While a few of these will only take on very high-consuming sites, the majority will be able to offer prices for a Dry Cleaners premises. Importantly, energy suppliers give us access to their latest price books. We know, therefore, what a competitive energy contract should look like based on your consumption history and location.
So please check with us before you accept a new energy contract from your current supplier.
Be careful. Read the small print.
Several business suppliers offer fixed rate energy contracts with a catch.
The small print states that they can increase prices (during a fixed price contract) if certain conditions are met. This could be that the energy market becomes particularly volatile. Or certain commodity prices increase (these include distribution costs that make up part of the price per kWh you are charged).
I’m sure you’ll agree, professional advice from experts in the energy market is invaluable.
Call our small team today, on 020 3372 6517.