Energy Management Workshop
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Overview and How EMW can help.

Change of tenancy is a term within the energy industry associated with the moving in or out of commercial premises.

There are certain obligations for the incumbent supplier and the new tenant. For example the existing supplier is obliged to ensure that there is energy to the building and to make sure that this is always the case. In the case of the tenant, there is an obligation to arrange a new contract with the existing or alternative supplier.

It is also strongly advisable that if you are moving out or into a premise that you keep the existing supplier informed of your contractual position. This is often neglected and can cause unnecessary problems for an incoming tenant as they will assume liability of the unclosed account.

Moving commercial premises or starting a new business is very stressful and time consuming by itself.  We know, we have been there ourselves.  What we can do is make the energy part straight forward for you. We will ensure that you avoid unnecessary costs and stress associated through an incorrect handling of the process.

Where EMW will help you. 

star.png   Complete the process on your behalf from start to finish.
star.png   Timely submission of relevant documents and letters according to supplier requirements.
star.png   A negotiated fixed price plan for your new premises significantly below deemed rates that you will be paying. Ensuring that the contract is the right one for you.
star.png   Gathering and submission of key bits of information such as meter reads and confirmation document.
star.png   Supplier Management and liaison.
star.png   Landlord management and liaison.
star.png   Advice on your current position and what we need to do next.
star.png   Avoidance and/or Assistance with a dispute in terms of who is liable for charges through the moving in and out process. We can act as a mediator between parties.
star.png   Guidance and assistance if you have been or think you could be the victim of a scam in this area.
star.png   Process according to whether you are a NHH or HH customer.
star.png   Supplier Identification
star.png   Review premises supply status to ensure it meets your consumption requirements and that you will be charged correctly against your usage.
star.png   Investigation and application of back-dating if you have been on deemed rates for a period of time.

When you take occupancy of a new premise we strongly recommend that you inform the current supplier straight away that you are the new tenant.

The critical considerations for doing so are that you need to prevent your business from being held liable for charges incurred by the previous tenant and to put yourself in a position to negotiate a competitive rate for your energy contract. You can choose which supplier to go to and are not obligated to stay with the incumbent.

The previous tenant’s contract is voided once the COT is registered on the incumbent suppliers system, putting your business onto deemed rates. This is unavoidable, as it is a process that must happen in order to transfer the responsibility of the energy consumed on site between companies. Moreover, you will not be able to agree a new contract until the premises is placed in your company name. EMW can help you to minimise as much as possible the period for which you will be on deemed rates as well as negotiate the best terms for your new energy contract.

EMW has significant experience in dealing with COT’s and will complete the process on your behalf so you can concentrate on your business. 

If your business is leaving a premise where you have an energy supply contract in place, you will need to inform your current supplier as soon as possible. Ideally we would recommend that you do this at least 30 days prior to moving as you remain responsible for the energy supplied into the property (and all costs) until you complete the change of tenancy process. The COT process can take up to 30 days to complete.

The critical considerations for doing so are that you need to prevent your business being held liable for charges incurred by the new tenant and to put yourself in a position to negotiate a competitive rate at your new premises.

You will need to submit full details and documentation to your current supplier. Seek confirmation and once agreed a final invoice will be generated, ending your legal contract with them. Do not cancel your direct debit once confirmation has been provided as you will still need to pay the final bill.

You will also need to submit Final meter readings, relevant dates and documentation alongside non-obligated requests for information such as the reason why you’re moving out, where you’re moving to and who the new occupier of the existing premises will be.

EMW has significant experience in dealing with COT’s and will complete the process on your behalf so you can concentrate on your business. 

As a landlord we understand it is important for you to keep in control of costs due to the concern that they may escalate, perhaps even into tenant debt. It is essential that you maintain the delicate balance of income and expenditure for tenant services, whilst ensuring that the tenant’s best interests are adhered too and that you are only charged for that of which you are responsible for. In this respect we understand that energy can be quite a significant player as a commodity due to its unpredictability, process, cost and regulatory matters.

In the change of tenancy case. Timely and Costly disputes can occur when one tenant moves out and the new tenant moves in. These dis-agreements can occur when the two parties are not assuming liability of consumption used around this period or when the supplier cot process has not been followed accordingly.

We have significant experience in this area and can act as a mediator between parties. With our knowledge of process and options we can reach the correct outcome and implement practical measures for you to avoid future disputes.

Click the Minimum Energy Performance Standards box in the side menu for more information, or click here for more information regarding new legislation for landlords.

These can be confused with out of contract rates and are typically applied within the change of tenancy process as a necessary evil – unavoidable for you and supplier.

(Out of contract rates are applied when the contract between supplier and customer has passed the contract end date, where the customer has not accepted a renewal offer and no other supplier is responsible for supplying to the site).

A short period of deemed rates apply when a site continues to be supplied by the incumbent supplier after the previous tenant moves out and a new tenant moves in. It is a process that must happen in order to transfer the responsibility of the energy consumed on site between companies.

A lengthier period of deemed rates apply where the new tenant uses energy without making contractual arrangements for the supply. This can be a very costly mistake but is often overlooked perhaps due to time constraints, focus on other parts of the business or naturally not being aware of the full process. If you have found yourself in this situation please contact us. We will talk to the supplier on your behalf and investigate, leaving no stone unturned, whether a back-dating arrangement can be agreed. This is where negotiated rates for your new contract may be applied to when you took responsibility of the site. 

If you’re moving into a new property as part of business development or change and there will be a significant change in your consumption, we will review your potential volume to determine whether you need to increase or decrease your profile class and available supply capacity.

Distribution costs make up between 25-30% of overall electricity spend for a business. Occasionally when you move into a new site you could be paying for more capacity than you need, as this is what was agreed with the previous tenant.

By aligning your usage to industry distributer and operator charges we will be eliminating any potential over spend, identifying potential further savings and ensuring that the supply status at site is correct so that you will not be prevented from adding further equipment within the business for example due to your capacity being too low.

Backdating is a term used for the process of applying negotiated contract rates back to the date your business took responsibility for the site and where you have been on deemed rates for a period of time.

At times, we are able to negate the expensive deemed rates in this respect and offer the back dating option. If you have found yourself in this position we will look into it for you thoroughly leaving no stone unturned and undertake negotiation on your behalf. That said, sometimes, it isn’t possible to execute back-dating due to outside commercial factors such as level of consumption, terms of the new contract, length of back-dating and so on.

There are a few suppliers that can only back date for a set period of time.

It is therefore clear that you should contact us regarding your Change of Tenancy as soon as possible.

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