How to steer clear of energy contract renewal pitfalls
The dos and don’ts for renewing your energy contracts. CLA Energy Services Director Rachel Richardson explains what mistakes members should avoid
Running a farm comes with its fair share of challenges, and renewing your energy contract might feel like just another task on the list, but overlooking the details can lead to higher costs that your business could do without.
By avoiding some common mistakes, you’ll give yourself a better chance of securing an energy deal that works harder for you and supports your rural business’s future.
1. Delaying the renewal process:
It’s easy to put off dealing with energy contracts, especially when you’re focused on more pressing tasks like managing livestock or crops, but leaving it too late could land you on an expensive default tariff.
How to avoid it:
Start the renewal process several months ahead. This gives you enough time to explore your options and avoid any last-minute panic. At CLA Energy Services, we can investigate this for you 12 – 24 months in advance.
2. Not reviewing your usage patterns:
Agricultural energy needs can fluctuate seasonally, with harvest times or specific growing cycles affecting consumption. Ignoring these patterns could mean signing a contract that doesn’t align with your actual needs.
How to avoid it:
Review your energy usage over the past year. Identify peak periods and see if an off-peak rate could save you money.
3. Failing to compare offers:
Sticking with your current energy supplier might seem convenient, but it could cost you. Rates and terms vary significantly between providers, especially for businesses like farms that use energy in unique ways.
How to avoid it:
Request quotes from multiple suppliers. With CLA Energy Services we can compare offers on your behalf, helping you get a competitive deal without the hassle of shopping around.
4. Ignoring market trends:
Energy prices shift all the time, often influenced by factors like demand, weather, and regulations. Renewing without considering these movements might mean missing out on a better rate.
How to avoid it:
Keep track of the energy market or let us do it for you. CLA Energy Services’ market experts can help you choose the right moment to renew for maximum savings.
5. Overlooking long-term business changes:
Is your farm expanding or adopting new technologies like irrigation systems or renewable energy? If so, your future energy needs might change, and signing a rigid contract could become a costly mistake.
How to avoid it:
Look into flexible contracts that can adjust as your farm grows or changes, ensuring it meets your evolving energy demands.
6. Neglecting customer service quality:
Price matters, but so does service. Poor customer support can create headaches down the line if issues crop up and your supplier is slow to respond.
How to avoid it:
Check the supplier’s reputation, or trust CLA Energy Services customer service team - rated 5 stars on Trustpilot - to handle queries and support throughout your contract.
7. Missing renewable energy options:
Many farms are moving towards renewable energy, whether it’s to reduce costs or meet sustainability goals. But not every contract includes options to integrate renewables.
How to avoid it:
Look into renewable energy options that can reduce both your bills and your environmental footprint. CLA Energy Services can help you find contracts with these options included.
Energy contract renewals don’t need to be a burden. By keeping these tips in mind, you can make well-informed decisions that support both your business’s financial health and its future growth.
For expert help with your renewal, reach out to CLA Energy Services at energyservices@cla.org.uk. We’re here to make the process easy, leaving you more time to focus on running your business.