In just a few weeks, it will be the end of the financial year (EOFY). For most businesses, June is all about getting their ducks in a row, whether that means getting ready for tax time, planning for the next year or revisiting company goals.
That means it’s also the time that many businesses look at re–contracting their energy. Many traditional retail contracts expire either at the end of the financial or calendar year. Getting the best deal depends on a few factors, like timing and demand, which means it’s important not to leave it to the very last minute.
At Flow Power, we always advise not to wait until your contract ends. Here’s why:
Simply put, when electricity contracts expire, businesses can automatically be put onto default market rates. Default rates are the fallback option when a customer’s electricity contract ends. Generally, they’re also more expensive.
If you move onto default rates and you re-contract with your existing retailer, they might credit the money back. However, the new rates they offer you may be higher, and you won’t have as much control over your price, especially if you need to re-sign with them to get your credit.
When you move or stay on these default rates for too long, it lessens the time you have to get a better deal. It’s important you stay in control of the price you pay and look at your options early.
Luckily, it’s not too late to get ahead of your energy costs. While market rates can be higher closer to the end of the financial year, we’ve developed energy plans to help you get the best outcome.
Power Active, our latest plan, helps to alleviate the risk of choosing the best time to contract. You might not know it but statistically, a business has just one day out of 252 working days to choose the best time of the year to sign a contract. That equates to just a 0.4% chance of choosing the right day.
As part of this plan, the Active Option lets businesses move to lower market rates if prices fall in the future. That means, if you sign onto a rate this financial year, by next year, your business could pay a lower rate if the market drops.
On the other hand, another plan Flow Power has is Power Up. It connects businesses directly with low prices in the wholesale market. Contracts start at just three months, making it a great option for businesses wanting to try doing things differently.
Both options give greater transparency into prices and deliver more opportunities to save. If you want to learn more about how timing can impact your energy agreement, read our webinar wrap here or request to talk to one of our experts below.