Utility Bill Increases
Several parishes have recently reported significant increases in their utility bills over the past year. One of the most common reasons for this is the expiration of a fixed-term energy contract, which often results in being moved to a more expensive “out-of-contract” rate. These contracts typically last between 1 to 3 years and can easily be overlooked.
Understanding Your Utility Charges
Utility bills generally consist of two main components:
- Standing Charge – A daily fixed fee, regardless of usage.
- Unit Rate – The cost per unit of energy used (usually measured in kWh).
If your monthly bills seem unusually high, it’s worth checking both your standing charge and unit rate. As a rule of thumb, if your standing charge exceeds 100p per day for either gas or electricity, it’s a good idea to contact your supplier. Ask for your contract’s end date and, if you’re out of contract or nearing the end, consider renegotiating your rates.
Tips for Renegotiating Your Contract
- Know Your Usage: Smaller parishes with lower energy consumption might benefit from a plan with a slightly higher unit rate but a lower standing charge.
- Compare Services: Some suppliers, like British Gas Lite, offer cheaper rates but only provide online support. If having access to phone support is important to you, factor that into your decision.
- Plan Ahead: Contact your supplier about two months before your contract ends. This gives you time to shop around and puts you in a stronger position to negotiate.
Success Story
One parish recently had separate suppliers for gas and electricity. The treasurer contacted the gas supplier two months before the contract ended and successfully negotiated a new rate of under 6p per unit for a 3-year term. His key advice: track your contract end dates and start negotiations early—suppliers are more flexible when they know you have time to explore other options.
