What gets missed

If you haven’t reviewed your contract recently, there’s a strong chance you’re being caught out by one or more hidden costs built into the agreement.

1. Auto-Rollover Contracts

One of the most common — and costly — traps. If you don’t act within your contract’s notice window, suppliers can automatically roll you into a new agreement.

• •Rates are often higher than current market prices
• •Terms can lock you in for another 12–36 months
• •Notifications are easy to miss or unclear

For many businesses, this happens without a conscious decision being made.

2. Out-of-Contract (Deemed) Rates

If your contract ends and no new agreement is in place, you’ll be placed on a deemed rate.

• •Among the most expensive tariffs available
• •Designed as temporary — but often last far longer

We regularly see businesses sitting on these rates for months, significantly increasing their costs.

3. Pass-Through Charges

Not all costs are included in the headline rate. Many contracts include additional charges such as:

• •Network and distribution costs
• •Environmental and policy levies
• •System and balancing charges

Without clear visibility, it becomes difficult to understand what you’re actually paying — and why.

4. Standing Charges vs Unit Rates

A low unit rate can look like a good deal. But if the standing charge is high, your total cost may still be inflated.

It’s important to look at the overall cost structure — not just the headline rate.

5. Supplier Margins

Energy pricing isn’t always transparent. Margins can vary significantly between suppliers and contracts, and without comparison, it’s difficult to know if you’re getting a competitive deal.

Two businesses with similar usage can be paying very different rates — purely based on how and when their contract was agreed.

Why this matters

Individually, these costs might seem small. But over the life of a contract, they can add up to:

• •Thousands in unnecessary spend
• •Reduced visibility on your true energy costs
• •Missed opportunities to optimise overheads

What should your business do?

You don’t need to become an expert in energy contracts. You just need:

• •Clarity on what you’re currently paying
• •A benchmark against the wider market

That’s where most businesses uncover immediate savings.