Understanding business energy contracts

08 November 2016

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‘Fixed’ price business energy contracts

At Gazprom Energy, we offer two different types of fixed rate energy contracts to our business customers.

The first of these fixed rate energy products is Shield, a ‘fully fixed’ product in which every part of the price is fixed and will not change for the duration of the contract. A Shield contract offers customers peace of mind that their energy costs will not change over their contract term.

The second type of fixed rate contract we offer isn’t fully fixed, meaning that some elements of the price will change or be reconciled during the contract period. With this type of contract, the wholesale energy price is fixed for the duration of the contract, but some/all of the third party charges associated with delivering the gas/electricity will be subject to change.

We call this type of contract True because customers are paying the true cost of third party charges, rather than a static price as they do with Shield.

For gas customers on True, one of the key variations in price comes from the review of the transportation charge. This is reviewed twice a year (April and October). Find out more about gas transportation charges.

For electricity customers, there are a number of different third party price elements, like Feed-in-Tariff (FiT) and Renewables Obligation (RO), which we can either fix or pass through.

fixed flexible business energy contracts

‘Flexible’ business energy contracts

Flexible energy purchasing contracts are completely different to both of our fixed rate products. Customers sign a contract for a set number of years, with an agreed management fee. They are then able to buy/sell their gas or electricity via our Energy Procurement Desk.

Flexible purchasing contracts are best suited to larger businesses with experience in buying and selling energy, and a working knowledge of the wholesale markets. Although Gazprom Energy can’t advise a customer when they should buy or sell energy, we offer complete access to consumption and position data, and also send daily market reports so that our customers can keep track of how the market is moving.

How long do business energy contracts typically last?

Typically, fixed rate and flexible energy contracts start at 12 months, but can often be adjusted to the specific requirements of our customers. Our five-year fixed gas contracts are some of the longest on the market, and offer superb peace of mind for small businesses that want consistent energy costs for the long term.

Did you know our gas contracts offer fixed rates for up to five years?

Find out more about our Shield gas product

small business energy contracts

What is a deemed contract?

 A deemed contract is when we supply a customer but they have not signed a contract with us. This most commonly occurs when a company moves into premises that one of our customers has just moved out of.  We will supply them until they move to their chosen supplier, or sign a new contract with us.

What is meant by the term ‘out of contract’?

Being 'out of contract' means the customer has terminated their agreement with us but has failed to move to a new supplier so they are no longer in contract with us and we charge them 'out of contract' rates.  This will end as soon as they sign a new agreement and supply starts with another supplier (or with us, again).

For more information on our range of business energy contracts for small and large businesses, visit the homepage or call us today on 0161 837 3395.

The views, opinions and positions expressed within this article are those of our third party content providers alone and do not represent those of Gazprom Energy. The accuracy, completeness and validity of any statements made within this article are not guaranteed. Gazprom Energy accepts no liability for any errors, omissions or representations.

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