Smartest Energy Out of Contract Rates: What You Need to Know
- Tom McGlynn
- Sep 27, 2024
- 4 min read
What Happens if You Don’t Renew Your Energy Contract?
If your energy contract with Smartest Energy ends and you don’t renew or switch to a new supplier, your business will be placed on out-of-contract (OOC) rates. While Smartest Energy’s OOC rates may initially seem lower, it’s important to understand that they do not include non-commodity costs, which are passed through to you. These additional costs can significantly increase your overall energy bill, making it crucial to fully understand the charges.
Smartest Energy Out-of-Contract Rates (Effective from 1st July 2024)
Gas:
Charge Type | Chargeable Unit | Rate |
Energy Rate | p/kWh | 7.02 |
Standing Charge | £/day | 9.36 |
Half-Hourly Metered Deemed Supply Rates:
Charge Type | Chargeable Unit | Rate |
Energy Rate | p/kWh | 27.692 |
Standing Charge | £/day | 3.84 |
Non-Half-Hourly Metered Deemed Supply Rates:
Profile Class | Charge Type | Chargeable Unit | Rate |
1-4 | Energy Rate | p/kWh | 27.720 |
1-4 | Standing Charge | £/day | 2.34 |
5-8 | Energy Rate | p/kWh | 27.677 |
5-8 | Standing Charge | £/day | 2.34 |
Understanding Non-Commodity Costs: Why Smartest Energy’s Rates May Appear Cheaper
While Smartest Energy’s out-of-contract rates may seem competitive at first glance, it’s important to understand that these rates only reflect the energy cost. Non-commodity costs such as distribution charges (DUoS), transmission charges (TNUoS), VAT, and the Climate Change Levy (CCL) are passed through separately. These costs can account for up to 60% of your total bill, making your overall costs much higher than the energy rate alone suggests.
Example Breakdown of Additional Non-Commodity Costs:
Let’s take the Half-Hourly Metered deemed rate as an example, with an energy rate of 27.692 p/kWh and a standing charge of £3.84/day. On top of this, you would need to add:
DUoS Charges: Approx. 2.5 p/kWh
TNUoS Charges: Approx. 0.5 p/kWh
VAT: 20% on total costs
CCL: 0.775 p/kWh
This means that while your energy rate appears to be 27.692 p/kWh, the actual rate you pay after adding non-commodity costs could be closer to 31-33 p/kWh. For a business with high energy consumption, these additional charges can result in substantial extra costs.
Without factoring in these non-commodity charges, you could be underestimating your total bill. It’s essential to ensure you have full transparency of all charges when comparing out-of-contract rates.
Why You Should Act Now to Avoid Higher Costs
Smartest Energy’s out-of-contract rates, when fully accounted for, could result in much higher monthly bills than under a fixed-term contract. Non-commodity costs are subject to fluctuations in the energy market, making it difficult to predict your overall expenses. It’s in your best interest to secure a new contract or switch suppliers to avoid these variable and potentially higher charges.
How to Avoid Smartest Energy’s Out-of-Contract Rates
At Smart Energy Company, we help businesses avoid out-of-contract rates by finding better deals. Whether you wish to stay with Smartest Energy or switch to a new supplier, we can negotiate on your behalf and provide you with quotes that include all commodity and non-commodity charges, so there are no surprises.
How We Can Help:
Tailored Quotes: We work with over 20 trusted suppliers to secure the best rate, factoring in all charges, to ensure you’re not caught off guard by unexpected costs.
Dedicated Support: Our account managers take care of the entire process, from negotiating rates to managing your contract renewal.
Easy Process: Simply send us your latest energy bill, and we’ll handle the rest, making sure you get the best deal possible.
Compare Smartest Energy with Other Suppliers
If you’re unsure whether Smartest Energy is the right fit for your business, we can help you compare their out-of-contract rates—including non-commodity costs—with other suppliers. This way, you can make an informed decision and secure a deal that’s transparent and cost-effective.
Visit our Smartest Energy supplier page for more details on their offerings and how they compare with other providers.
Why Choose Smart Energy Company?
Transparent Pricing: We provide you with quotes that include all charges—both commodity and non-commodity—so you know exactly what to expect.
Tailored Solutions: We offer personalised energy deals designed to meet your specific business needs.
Expert Support: Our team of account managers will guide you through the entire process, from getting quotes to signing your new contract.
Frequently Asked Questions
Q: What happens if I don’t renew my Smartest Energy contract?
A: If your contract ends and you don’t renew or switch, you’ll be placed on Smartest Energy’s out-of-contract rates. These rates only reflect the energy cost, and non-commodity charges will be passed through separately, potentially making your total bill much higher.
Q: Can I stay with Smartest Energy but get a better rate?
A: Yes, we can negotiate with Smartest Energy on your behalf to secure a better rate that factors in all charges, or we can help you explore other suppliers.
Q: How do I know if I’m on out-of-contract rates?
A: If your contract has expired and you haven’t taken action, you are likely on OOC rates. Contact us for a quick review to confirm your current rate and explore savings.
Start Saving Today
Avoid paying more than you need to. Get in touch with Smart Energy Company today for a free, no-obligation quote and discover how much you could save by renewing or switching suppliers.
0151 459 3388 | info@smart-energy.uk
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