Avoid These 3 Energy Contract Renewal Mistakes

While most organizations are aware of the importance of managing their energy strategy, many struggle to get the best rate when it comes time to renew their contract. We see it all the time, once the energy contract is signed it’s filed away only to be reviewed when the deadline is at hand. During the rush to get the contract renewed before it expires, errors and missed opportunities happen that can wreak havoc on an energy budget.

Don’t let that be you. Energy spend is typically one of the largest line items in your budget and it deserves the same amount of attention. If you want to be proactive, you should be looking at contracting opportunities 18 months or more prior to expiration. To avoid costly errors, you must actively work on your renewal at least six months prior to the expiration date. By making note of key milestone dates, you’ll ensure you have time to explore options, review pricing proposals and get paperwork in order without being pressed against a deadline.

Starting early can also help you avoid these three expensive consequences:

1. High utility or rollover rates. All too often when companies wait until the last minute to renew, they find themselves missing the enrollment window and facing higher utility or roll over rates or missing out on re-enrollment altogether.
   
   
2. Negotiating your contract during the fall and winter months. Not only are fall and winter peak times for higher rates, but they are commonly corporate budgeting months. By renewing early, you’ll have your energy spend locked in before budget season. Knowing what your energy input will be helps you budget more accurately and focus on year-end initiatives—a win-win!
   
   
3. Unexpected roadblocks. During the renewal process, unexpected problems may arise that can take time to figure out, including unidentified meters, complex current contracts and credit check issues. If time is short, you may fail to get a new contract in place.

Our experienced team of energy advisors can help you avoid the last-minute pitfalls of rushing to renew your energy contract.