When it comes to renewing your energy contract, timing and attention to detail are everything. You’ve been running your business, keeping operations ticking along smoothly, but now it’s time to face the energy contract renewal. Done right, you’ll secure a deal that works for your needs and could even help save money as well as predict costs. Done wrong, you could end up on a costly default tariff or tied into an agreement that’s not the right fit.
We’ve seen it time and again – businesses falling into common pitfalls that turn what should be a straightforward process into a stressful scramble. Let’s take a closer look at these traps and, more importantly, how you can avoid them.
1. Delaying the renewal process
It’s easy to push energy contracts to the back of your mind, especially when you’ve got more pressing tasks at hand. But the truth is, waiting too long to start the renewal process can lead to problems like rushed decisions or being placed on expensive default rates.
How to avoid it: Give yourself plenty of time. Start the renewal process several months before your current contract ends. This gives you time to review your options, negotiate, and ensure you’re getting the best terms. At Troo, we can look into this for you 12 – 24 months in advance. If you are a customer, we will contact you to let you know when you can start the process, or alternatively if you want to check then you can reach out to us.
2. Overlooking your usage patterns
Energy contracts are not one-size-fits-all. Every business has different energy needs, and failing to take your usage patterns into account could lead to paying for energy you don’t use – or worse, facing penalties for underestimating consumption.
How to avoid it: Review your energy usage over the last year. Look at when your business uses the most energy, whether you have seasonal spikes or if you could benefit from off-peak rates. By understanding your patterns, you’ll be better placed to choose a contract that aligns with your business needs. Or if you need help with this, Troo will be able to assist.
3. Not comparing multiple offers
Loyalty is important in many areas of life, but when it comes to energy contracts, sticking with your current provider without shopping around could cost you.
How to avoid it: Ensure you get quotes from multiple suppliers. Compare not only the prices but also the terms and the level of service each provider offers. With Troo’s broad access to suppliers, we can do this work for you, making sure you’re getting the most competitive deal with minimal hassle.
4. Ignoring market trends
Energy prices are always moving. Whether driven by supply and demand or regulatory changes, these fluctuations can make a big difference to the cost of your contract.
How to avoid it: Keep an eye on the market. Pay attention to seasonal trends, regulatory updates, and other factors that can impact energy costs. If you’re unsure where to start, Troo’s expertise and constant market monitoring can help you navigate these trends and find the best timing for your renewal. Our quarterly newsletter will also include a market report to keep you updated.
5. Misunderstanding contract terms
Energy contracts are full of small print that can be easy to overlook. But buried within those pages are crucial details about pricing mechanisms, fees, and other conditions that could affect your business.
How to avoid it: Don’t be afraid to ask questions. If you’re unsure about something, speak with your provider or consult an expert. Clarify anything that doesn’t make sense, and make sure you understand exactly what you’re signing up for before committing.
6. Neglecting to negotiate
The first offer on the table might not be the best one. Yet, many businesses accept it without considering whether there’s room for negotiation.
How to avoid it: View the renewal as an opportunity to improve your deal. Can you secure a lower rate? Is there a chance to add extra services or gain more flexible contract terms? With Troo’s knowledge of the market, we can help you negotiate with confidence, ensuring you get the best terms available.
7. Failing to consider long-term business changes
Your business may not look the same in a year as it does today. Expanding your operations, cutting back, or moving to more energy efficient processes are just some of the factors that could impact your future energy needs.
How to avoid it: Think long term. Are there changes coming that will affect how much energy you use? Choose a contract with the flexibility to adapt to your business as it grows or shifts. This way, you’ll avoid being locked into a deal that no longer makes sense.
8. Overlooking service quality
While price is an important factor, it’s not the only thing to consider. Poor customer service or unreliable support can lead to frustration and operational issues throughout your contract. If problems arise and you’re stuck dealing with a supplier that doesn’t respond well, it could cost you more than just time.
How to avoid it: Take the time to evaluate the supplier’s reputation for customer service and ongoing support. This could involve checking reviews, asking for recommendations, or using a broker that can do this research on your behalf. For example, Troo’s Troo Assure team, rated 5 stars on Trustpilot, is available to handle queries and support throughout the contract, offering peace of mind by managing these concerns so you don’t have to.
9. Not factoring in renewable energy options
As sustainability becomes more of a priority for businesses, there’s an increasing opportunity to incorporate renewable energy into your contract. It’s not just about being green – it could also reduce costs in the long run.
How to avoid it: Check whether renewable options are available in your contract. More businesses are choosing renewables to align with sustainability goals, and doing so could benefit both your bottom line and the environment.
10. Overlooking exit or change clauses
Circumstances change and being locked into a contract that doesn’t suit your evolving needs can be frustrating and costly. Hidden exit fees or restrictive change clauses can leave you stuck.
How to avoid it: Before signing, carefully review the contract’s exit conditions and amendment clauses. Make sure you’re comfortable with any fees or conditions and choose a contract that gives you the flexibility to make changes if your business needs shift.
Energy contract renewals don’t need to be stressful. By keeping these common pitfalls in mind, you can take control of the process, make informed decisions, and secure a deal that works for your business. Taking the time to review your options, negotiate where necessary, and factor in both your current and future needs will help ensure a smooth transition when it’s time to renew. And if you need any guidance, feel free to reach out to Troo at hello@troocost.com – we’re here to help.
As the heart and soul of their communities, football clubs not only face the pressures of performance on the pitch but also the challenges of managing energy costs off it. With grounds, stadiums and bustling facilities, these clubs contend with formidable energy demands.
In this guide, we’ll take a closer look into the unique obstacles football clubs encounter and offer practical strategies for slashing energy expenses through savvy procurement methods and the exploration of on-site generation initiatives.
Understanding the Challenges
- High Energy Consumption: Football stadiums stand as beacons of activity, especially during match days and training sessions. Floodlights illuminate the field, heating systems keep spectators warm, and various facilities hum with energy-intensive operations, collectively driving up energy consumption.
- Limited Roof Space: Unlike traditional commercial buildings with expansive rooftops ripe for solar panel installations, football stadiums often present a challenge due to their limited roof space. This constraint makes conventional solar options less viable, necessitating alternative approaches.
- Variable Energy Needs: The energy demands of football stadiums ebb and flow, influenced by factors such as match schedules, events, and seasonal changes. This variability complicates efforts to accurately forecast and manage energy usage, adding another layer of complexity to cost containment efforts.
Reducing Energy Costs through Procurement
- Strategic Energy Procurement: Partnering with an experienced energy broker can be a game-changer for football clubs. These professionals specialise in negotiating bespoke energy contracts tailored to the club’s unique requirements. Whether it’s securing fixed-price contracts or exploring flexible purchasing options to hedge against market fluctuations, expert guidance can lead to significant cost savings.
- Harnessing Group Buying Power: Strength lies in numbers. Football clubs can leverage their collective buying power by forming alliances with other clubs or sports associations. Pooling resources can enhance negotiating leverage with energy suppliers, potentially unlocking preferential rates and more favourable contract terms.
- Embracing Energy Efficiency: Investing in energy-efficient technologies and practices is a winning strategy for reducing energy costs. From upgrading to LED lighting systems to optimising HVAC operations, implementing energy-saving measures can yield substantial long-term savings while also aligning with sustainability goals.
Exploring On-Site Generation Initiatives
- Ground-Mounted Solar Solutions: While rooftops may present limitations, football clubs can turn to ground-mounted solar panel installations as a viable alternative. Utilising adjacent areas such as parking areas or training grounds, these solar arrays can harness sunlight to generate clean, renewable energy. This not only reduces reliance on the grid but also demonstrates a commitment to environmental stewardship.
- Strategic Battery Storage: Enter the era of energy autonomy with battery storage solutions. By capturing excess energy generated during off-peak periods or from renewable sources like solar panels, football clubs can store this surplus energy for later use. Strategically placed battery storage systems can provide backup power during peak demand hours, offering resiliency and potential cost savings while mitigating grid dependence.
- Pioneering Microgrid Integration: Looking towards the future, football clubs can pioneer the development of microgrid systems. These integrated networks combine renewable energy sources, battery storage, and traditional grid connections to form a resilient and self-sustaining energy ecosystem. By managing energy usage and generation on-site, microgrids help clubs to assert greater control over their energy while enabling sustainable outputs and cost efficiency.
In the realm of football, victory isn’t just measured by goals scored on the field but also by the ability to tackle challenges off it. By embracing proactive energy management strategies, football clubs can score big in cost savings while championing sustainability.
With the guidance of seasoned energy advisors and a commitment to innovation, football clubs can lead the charge towards a brighter, more sustainable future for themselves and their communities.
Need some help? Reach out to our friendly team today. Call us free on 0808 164 2222 or drop us an email at hello@troocost.com
For UK business owners, managing overhead costs is crucial for maintaining profitability and staying competitive in an ever-changing economic landscape. One often overlooked aspect of running a business is energy procurement.
Many businesses leave the renewal of their energy contracts to the last moment, only to find themselves facing higher costs and unexpected pitfalls. Let’s delve into the reasons why business owners should consider finding prices for their next business energy contract early – and consider the potential pitfalls of leaving it until a current contract has expired.
Understanding Market Fluctuations
To truly appreciate the importance of securing your business energy contract early, it’s essential to grasp the concept of market fluctuations. These factors play a significant role in determining the optimal timing for locking in your energy rates.
Market Fluctuations
The energy market is highly dynamic, influenced by various factors such as supply and demand, geopolitical events, weather conditions, and regulatory changes. As a result, energy prices can experience significant fluctuations over time. These fluctuations can occur on both short-term and long-term scales.
Short-term fluctuations are often driven by immediate factors, such as changes in weather patterns or sudden disruptions in energy supply. These can lead to short-term price spikes or dips, which may impact your energy costs if your contract is up for renewal during such a period.
Long-term fluctuations, on the other hand, are driven by broader market trends and economic conditions. For example, shifts in global energy demand, the emergence of new technologies, and changes in government policies can all have a profound impact on energy prices over several years.
Understanding these fluctuations is crucial because they can directly affect the rates you pay for your business energy. By monitoring market trends and working with a reputable energy broker, you can better time your contract renewal to take advantage of favourable market conditions.
Why Timing is Key
Timing is key in energy procurement because it allows businesses to secure competitive prices, avoid costly deemed rates, and harness market fluctuations for maximum savings.
1. Avoid Deemed Rates and Price Hikes
One of the most significant reasons to start the energy procurement process early is to avoid being stuck on deemed rates or experiencing sudden price hikes. Deemed rates are the default rates that energy suppliers charge when a business energy contract expires without a new one in place. These rates are significantly higher than negotiated rates and can quickly eat into your budget.
By initiating the procurement process well before your current contract expires, you can secure a new contract with favourable terms and rates, ensuring that you don’t fall into the expensive trap of deemed rates. Waiting until the last minute leaves your business vulnerable to price increases in the energy market, which can be triggered by various factors such as geopolitical events, supply chain disruptions, or fluctuations in demand.
2. Benefit from Market Fluctuations
Energy markets are highly dynamic and influenced by a multitude of factors. Prices can fluctuate daily or even hourly, making it challenging to predict the best time to secure your energy contract. However, starting the process early gives you the advantage of monitoring market trends and making informed decisions about when to lock in rates.
For instance, if you start the procurement process when energy prices are relatively low, you can capitalise on these favourable market conditions and secure a long-term contract at a competitive rate. Conversely, waiting until the last minute might mean locking in higher rates during a market upswing. By staying proactive, you can align your energy procurement strategy with market fluctuations to save your business money.
3. Gain Access to Competitive Offers
Another compelling reason to begin your energy procurement process early is to give yourself ample time to explore and compare offers from different suppliers. The energy market is highly competitive, with various suppliers vying for business customers.
By engaging a broker at an early stage, you open the door to an extensive selection of offers, far beyond what you might find on your own. These brokers have access to a broad network of suppliers and can cast a wider net to source competitive solutions that fits with your organisations unique requirements. This strategic advantage can lead to substantial cost savings, as brokers are adept at negotiating discounts and incentives that align with your preferences and objectives.
Leverage the Expertise of a Reputable Broker
Navigating the complexities of the energy market can be daunting for business owners, especially if you lack the necessary expertise. This is where reputable energy brokers come into play. These professionals are well-versed in the energy market and have the knowledge and connections to secure competitive deals for your business.
Using a reputable broker offers several advantages:
a. Market Knowledge: Brokers stay up-to-date with market trends and can provide valuable insights into when to secure contracts at the most advantageous rates.
b. Supplier Relationships: Brokers often have strong relationships with energy suppliers, which can result in better terms and rates for your business.
c. Time Savings: Energy procurement can be time-consuming, but brokers can handle the entire process on your behalf, allowing you to focus on running your business.
d. Cost Savings: Brokers have the negotiating skills to secure competitive terms and rates, potentially saving your business a substantial amount of money.
e. Tailored Solutions: A reputable broker can align energy procurement solutions to your specific business needs, ensuring you get a contract that fits with your budget and energy consumption patterns.
Conclusion
In conclusion, UK business owners should consider securing their energy prices early to avoid falling into the pitfalls of deemed rates and price hikes. Starting the procurement process ahead of your contract expiration date allows you to benefit from market fluctuations, access competitive offers from various suppliers, and leverage the expertise of a reputable broker.
Don’t leave your business’s energy costs to chance. By taking a proactive approach, you can maximise savings, minimise risk, and ensure that your business remains financially resilient in an ever-changing energy landscape.