Many people wrongly assume that if they are happy with their current energy contract and its rates they should just renew it. This assumption is wrong and if you keep reading you will find out why. Firstly, energy prices change all the time and maybe after your current contract ends you can get more competitive rates. Secondly, the prices that your supplier suggest in the renewal letter they send you are usually 2 or 3p higher than your current rates. Suppliers do it because they know that many people do not check these offers thoroughly and just accepts them without thinking. After all, their main goal is to make a profit.
Another mistake that many customers frequently make is not doing anything when they receive the renewal letter and simply waiting for their contract to end. If your contract is about to expire and you do not do anything, you might find yourself on a very expensive deal that you will be stuck with for a long period of time.
Have you ever heard of rollover contracts?
They are the type of energy contract that you will be placed on if you fail to submit a contract termination notice or choose a new tariff before your current contract finishes.
What characterises them?
Rollover contracts have been deemed unfair because they include expensive rates and, in most cases, they lock customers in for 12 twelve months.
How to avoid being rolled over?
The most important thing to avoid that happening is to remember when your contract ends and react as soon as you receive an offer to renew it. When you do, make sure to conduct market research and compare various energy deals to pick the one that will be the best for your business.