The downturn in the economy is having an effect on all sectors, not least securing favourable terms for the supply of electricity and gas contracts. This can result in some energy companies offering their customer’s very onerous renewal terms and in one instance a business was asked topayadeposit equivalent to7months usage in advance.
However this isn’t just happening to individual companies.It is also an issue managing agents face when their clients create complex tax structures for property ownership which an energy company cannot understand. As with all commercial businesses,energy companies tend toshyaway from risk and items they do not understand. Therefore having off shore companies with no assets or acceptable accounts will discourage an energy company offering good market terms. Tenants in a multi occupied building may not be exposed to the issues their Landlord’s managing agent is having in reaching good terms but in the current economic climate, with pressures to maintain service charges low it is almost certain they will be using their buying power to secure good terms, but it may not be easy.
Openness and transparency of financial information is helpful and demonstrating a good credit history, with a clear company structure, will assist in securing the best terms possible. Furthermore, using an energy broker may also be helpful, as many will have long and trusted relationships with the larger gas and electricity companies, and may be able to support your requirement for more favourable conditions. If you do not have the comfort of having your energy bought for you through a managing
