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Small Businesses Don’t Understand Their Energy Contracts

December 10, 2014 By Linda Hardesty

ERC energy manageThe Energy Research Council’s new brief “Buyer Beware: Early Contract Termination” finds that seven out of every 10 small-to-medium business owners are unaware of early termination provisions in their electricity supply contracts.

Early termination occurs when a customer locks into a contract with an electricity supplier for a start date that overlaps with an existing supply contract. ERC says energy contract termination is an increasing conflict that burdens electricity customers, suppliers and the marketplace.

ERC’s research findings from an online survey of about 1,250 small-to-medium business executives also revealed that

  • 21 percent believe their current supplier contract will continue on a month-to-month basis after expiration;
  • 32 percent don’t know if their current supplier contract includes an auto-renewal clause;
  • 48 percent rate their current electricity supply contract as complex or very confusing.

One comment on “Small Businesses Don’t Understand Their Energy Contracts

  1. It is very true that small and medium sized companies do not understand their energy contracts. However, they cannot afford to employ a full-time Energy Manager to manage all these. This is where Chemp Energy Management comes in. These companies get a well qualified Energy Manager but need to pay only for the time required to meet their Energy related needs.

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