Recently Ofgem has been looking into the non-domestic energy market. They are looking at all issues that could be making energy more expensive or creating issues for business consumers.
Ofgem has noticed that some suppliers have been offering businesses blend and extend contracts. With over 50% of suppliers now offering blend and extend contracts Ofgem have got some opinions on them.
You may be wondering what is a blend and extend contract? This is where the rate you pay for energy will be lowered but also increases the length of your current contract. This has seemed like a win-win contract for many businesses when they have signed however it has caused many issues.
This type of contract was useful for many businesses that signed energy contracts during peak time with no energy support. Ofgem has warned that this might not be beneficial to many customers.
These types of contracts could cause affordability issues for both the supplier and the customer. It could end up in lower profits for the supplier and higher prices for the customer as they might have been able to get lower prices if they were not stuck in a high price contract.
Although some suppliers have offered relegation for customers stuck in these long contracts, this has not been the case for all businesses. This has left them stuck paying higher prices.
How to find the best contract for your business?
To secure the most appropriate and cost-efficient contract for your business, it's advisable to consult with an energy expert. At Resolve Energy we have an in-depth knowledge of the energy field, staying abreast of market trends, regulatory changes, and various contract types, such as blend and extend contracts.
We can provide crucial insights and advice, ensuring your business strikes an energy deal that aligns with its unique needs and budget and avoids potential pitfalls. Remember, the energy market can be complex, and an informed decision necessitates expert guidance.
Our team of experts is ready to help you navigate the complex energy market. We understand that every business is unique, and thus, requires an energy contract that perfectly fits its particular needs and budget.
As energy consultants we stay updated with the latest market trends, regulatory changes, and contract types, which means we are well-equipped to guide you towards the most beneficial decisions. We're here to provide the advice and support you need to secure a contract that doesn't just save on costs but also supports your business's growth and sustainability. Trust us to turn the complexities of energy contracts into an advantage for your business.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.