Energy supply rates can be locked in, or fixed, for a period of time to mitigate risk, often key for small to medium businesses. These contracts often last 12, 24, or 36 months. Many customers forget they signed a contract after 12 or 36 months. And, if you are not mindful of your expiration date, it could be detriment for several reasons: 1. forward thinking about the expiration date allows you to take advantage of a lull in the energy market, 2. avoid an Early Termination Fee (ETF) and 3. being subject to a variable market rate after expiration which is subject to highs (and lows).
Depending on your state, utility, and season Diversegy’s energy experts recommend going out as far as a year from contract expiration and no later than a month. Securing new terms and rates ahead of time provides budget certainty and mitigates the risk of market inflation close to the date of contract expiration.
ETFs, or early termination fees, are another important reason to be aware of contract expiration dates. These occur when a customer signs a new contract and it becomes active prior to the current contract ending. Diversegy tries to ensure this does not happen and identifying the contract expiration date is key. By knowing your contract expiration date, you can avoid these ETF charges. If you have a current copy of a contract on file Diversegy can review, thereby helping new customers avoid ETFs and any other hidden fees.
Diversegy’s is regularly evaluating market conditions and our existing customers contract end dates to find the best time to lock in a new contract. We do not want your business to be charged any additional fees or a higher supply rate than necessary if they can be avoided. If we see the market dip, your account manager will let you know and recommend locking in your new contract rates now.
For customers that do not know their expiration or have a contract on file AND are with a third-party supplier, no need to fret. While we don’t have immediate access to look up this information, Diversegy may be able to obtain this information on the client’s behalf. By providing Diversegy with a Letter of Exclusivity, or LOE, it identifies to suppliers that we have permission to look into the energy spend and contracts on a client’s behalf. These letters have expiration dates and do have limits.
Curious about what energy rates are available for when your contract expires? Click on the “Free Analysis” button.