Utility Management
When buying gas and electricity its important to understand that Village halls are classed as business customers.
This means that:
· Many halls have contracted with their current supplier, usually for a fixed time period
· Switching suppliers is possible, but it isn’t as easy as for domestic customers.
Gas and electricity are major areas of cost for halls. This, coupled with volatility in pricing, suggests that it would be good practice to monitor this regularly (at least once a year, unless you are contracted for a longer time period.)
Three steps for managing your utility costs
1. What is your current situation? – Take control
Many halls are contracted to their current supplier, but don’t realise it. Unless you are certain of the nature of your deal with your current supplier, we suggest that you contact them to find out or authorise LSI to do it for you.
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Whether you are in a contract with them?
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How the contract can be terminated – whether it is a fixed term contract, or if it is a rolling contract, the length of the notice period?
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Ensure that your utility supplier has the correct contact details for the person managing the Hall utilities. This will mean that letters regarding the contract are delivered to the appropriate person promptly.
Note:
Some contracts automatically “roll over” into a new contract period if notice is not given during a specified time-window. This time window can be short, can close three months before the contract ends, and under some contracts, the supplier does not need to write to notify you of this period.
Thankfully from the 18th January 2010, OFGEM now requires suppliers to ‘micro business’ customers (which is almost 99.9% of village halls) to only have a one year contract length, and IMPORTANTLY you can give notice at the same time you start the contract, enabling you to be free to consider your options at the end, rather than be ‘bounced’ into an extention.
2. Compare the Market
You should review the market at least annually unless you are in a longer contract. Prices and available tariffs change, and you are advised to review what is available. To do so, you should use the last year’s bills to gain an accurate picture of your annual consumption.
The importance of the standing charge will vary according to how much energy you are using. If you use relatively little energy, finding a tariff with a low daily standing charge will be important.
Fixed-term contracts can often enable you to access prices that are cheaper, but will tie you in for an extended time period. In determining whether this is a good buy, you will need to make a judgement on the future direction of energy prices.
Prices do vary by supply region, so check that you are getting a price comparison for your region. You will also need to know your ‘Supply Number’ as it contains profile information that will enable you to get an alternative quote, and will be needed to switch supplier if you decide to do this.
Don’t necessarily accept the first quote you are offered. As a business customer, there is considerably more scope for negotiation than on domestic tariffs. This is why using LSI gives you the best opportunity to secure a good deal.
3. How to Switch
If you do decide to switch, you will need to plan it carefully, and ensure that you give your existing supplier appropriate notice as determined by the contract. This is why the Village Hall Energy Club can manage the process and ensure you get te best deal to save money.
For some fixed period contracts which automatically “roll over”, the short length of notice period in the interim can mean that there isn’t time to go back to the Hall Management Committee to authorise a change of supplier or tariff.