Contract Termination
The process of contract termination is extremely important, as all energy contracts with suppliers automatically renew themselves after the initial contract term, unless you terminate your agreement with them, or if you have specific conditions in you’re contract that doesn’t require you to provide termination, such as new rules regarding micro business in the UK.
This can mean that your energy contract will be “rolled over” into a new annual contract at an uncompetitive price as the supplier knows you can not move away from them for a minimum of 12-months and in some cases even up to 2-years.
Unfortunately in many cases customers miss their renewal date, and don’t provide a supplier with a contract termination in time, or accept price increases through inertia because they’re to busy trying to run their own business.
Unbelievably it is not the responsibility of the energy supplier to remind you that your energy contract is coming to an end and that you need to do a contract termination with them to avoid an automatic renewal.
If a supplier does write to you it is normally to provide you with your renewal prices only, and normally after the minimum notice period has already lapsed, so you are stuck with what ever they offer you.
Let’s get one thing clear, the supplier does not want to draw your attention to the fact that they want to charge you higher prices for your new contract and they won’t attempt to remind you of your contract termination.