What Happens if You Don’t Renew Your Contract with Crown Gas & Power?
If your business’s energy contract with Crown Gas & Power expires and no new contract is agreed upon, you will be placed on their Out of Contract (OOC) rates. These rates are typically higher than those you’d pay under a fixed-term contract, making it important to understand the potential impact on your business's energy costs.
Effective 1st October 2024, Crown Gas & Power's OOC rates are based on your Xoserve Rolling Annual Quantity (AQ), which means your annual consumption determines your rates. Below, we break down these rates and explain how you can avoid paying more than necessary.
Crown Gas & Power Out-of-Contract Gas Rates (Effective 1st October 2024)
Consumption Period | Annual Consumption (Xoserve Rolling AQ) | Unit Rate (p/kWh) | Daily Standing Charge (Inclusive of Administrative Charge) |
Band 1 | 0 - 73,200 kWh | 5.856 p/kWh | Site Specific (£/day)* |
Band 2 | 73,201 - 293,000 kWh | 5.550 p/kWh | Site Specific (£/day)* |
Band 3 | > 293,001 kWh | 5.415 p/kWh | Site Specific (£/day)* |
*Rates are subject to prevailing VAT and Climate Change Levies (CCL).
These rates remain in effect until further notice from 1st October 2024, and may vary based on operational costs. The Daily Standing Charge is site-specific and can increase if there is a rise in operating costs, which could further impact your overall bill.
What Are Out-of-Contract Rates and Why Should You Act?
Out-of-contract rates, like those offered by Crown Gas & Power, are generally higher than fixed-term rates, as they account for the increased risk to the supplier. If your business is placed on OOC rates, it’s crucial to understand that:
Higher Costs: The unit rates for gas, combined with site-specific daily charges, can add up quickly, especially for businesses with higher consumption.
Variable Standing Charges: As these charges are site-specific, they may vary and could increase over time, leading to further cost increases.
No Long-Term Price Security: OOC rates fluctuate based on market conditions, unlike fixed-term contracts that provide price stability for a set period.
The best way to avoid these higher costs is to lock in a new contract before your current one expires. This will ensure your business benefits from more competitive rates.
How to Avoid Crown Gas & Power’s Out-of-Contract Rates
At Smart Energy Company, we specialise in helping businesses avoid paying unnecessary out-of-contract rates by securing better energy deals. Whether you want to stay with Crown Gas & Power or explore other options, we provide a tailored quote that meets your energy needs.
How We Can Help:
Tailored Quotes: We work with over 20 trusted suppliers to find the best rate for your specific business needs, including those from Crown Gas & Power.
Personalised Support: Our dedicated account managers guide you through the entire process—from negotiating rates to managing contract renewals.
Simple Process: Just send us your latest energy bill, and we’ll handle the rest, making sure you get the most competitive rates possible.
Why You Shouldn’t Wait: Lock in Better Rates Now
The longer your business stays on Crown Gas & Power’s Out-of-Contract rates, the more likely it is that you’ll pay higher energy costs. Even if your business’s energy consumption falls into a lower band, the site-specific daily standing charges could still lead to a significant increase in your total bill.
Smart Energy Company can help you understand the current market conditions, find the best time to renew, and avoid the pitfalls of remaining on OOC rates. Don’t wait—contact us today to explore your options and secure a better deal.
Final Thoughts: Is Staying with Crown Gas & Power the Right Choice for Your Business?
While Crown Gas & Power’s OOC rates offer flexibility, they often come at a higher price. Understanding the difference between out-of-contract rates and a fixed-term agreement can make a big difference in your business's energy budget.
Let Smart Energy Company guide you through the process of finding a more cost-effective solution, whether that means staying with Crown Gas & Power or exploring options from other suppliers.
0151 459 3388 | info@smart-energy.uk
Comentarios