Business Electricity Price Comparisons - A Property Manager's Checklist

07 April 2017

Business Electricity Price Comparisons - A Property Manager's Checklist

Do you know when the energy contracts of the buildings you manage are up for renewal? Do you know the rates you pay on each of those contracts? Do you know how many days’ notice you must give suppliers when you want to switch?

These are questions that all businesses must know the answer to but they are particularly significant if you’re a property manager. This is because you might have to deal with multiple energy suppliers and contracts on multiple buildings that you manage.

The following checklist for conducting effective electricity price comparisons will help ensure you get the best deals for electricity.

The key aim is to ensure the contracts don't get rolled over. This happens at the end of a fixed term deal. Around 60 to 120 days before the deal with your current supplier is about to expire, you will receive a letter informing you of the rollover contract. If you don't tell the supplier you intend to terminate at the end of the fixed term deal, your acceptance of the rollover contract is assumed.

This means you will probably be locked into another long term deal. This greatly limits your choices and usually means the electricity in the properties you manage will be more expensive than it could be. This is because the rollover rates you will be offered are usually higher than other rates available at the supplier, and higher than rates you could get if you switch.

The Property Manager's Checklist

  • Make sure you know the details of your current contract - the key points you need to consider are the expiry date and how much notice you must give to terminate.
  • Get an understanding of your electricity usage - you should also spend some time looking at past bills to see how much electricity the properties you manage use and how much that costs.
  • Make sure contracts are terminated properly - as contracts on the properties you manage fall into the termination period, make sure you send notice promptly. This will ensure there is no accidental rolling over of the contract.
  • Conduct business electricity price comparisons for all the properties that need new contracts - go to as many and as varied a selection of suppliers as possible.
  • Read the paperwork thoroughly - when you decide on a supplier, read the paperwork of the deal thoroughly so you understand what is involved before you sign. Always remember that, unlike domestic energy contracts, there is no cooling off period when you sign up to a business energy contract. Once you sign, the contract is in place for the duration of the term.
  • Store the paperwork safely - keep the electricity supply contract in a safe place so you can refer to it.
  • Set a reminder - set a reminder so you remember to look at the electricity supply for that property again before the deal you have just signed expires.

By following this advice you will be more organised when it comes to electricity suppliers and contracts, and you will be able to offer a better service to your clients who own the properties.

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