Business Gas & Electricity from Ecotricity
UK owned and run Ecotricity – “The world’s first green energy company” – has a range of different business electricity and gas tariffs to suit businesses of any size.
Ecotricity, established in 1996 and run by the charismatic Dale Vince, provides various products including 100% Green Electricity and “Britain’s greenest gas”.
The Ecotricity Checklist
- Are their prices fully fixed? No, the price can change, however you can leave within 28 days of a change being communicated
- Do they include metering and transportation costs in the price? Yes
- Do they include FIT and RO and CFD in the price? An approximation is included but changes can be passed through
- What is their back billing policy? Anything up to six years
- Do they require a letter of authority? Yes
- Does the contract lapse on change of tenancy? Yes
- Is your contract end date on the invoice? Yes
- Is your termination date on the invoice? No
- When will your renewal letter arrive? No renewal letter is issued as it is a 28 day rolling contract
- When do you need to terminate? 28 days in advance of leaving
- Do they require termination letter by recorded delivery? Yes
- Will they rollover your contract? No
- How high are the out of contract rates? 14.5p/kWh for electricity customers
- Do they mandate Direct Debit payment terms? Ecotricity are yet to provide this information
- What are their Direct Debit terms? Ecotricity are yet to provide this information
- Do they offer Cash / Cheque payment terms? Ecotricity are yet to provide this information
- Do they support reduced rate VAT declaration? Yes
- Do they bill monthly or quarterly? Quarterly as standard
- Do they provide online billing? No
- Do they install smart meters as part of the supply contract? No
- Do they support existing smart meters with full functionality? No
- Do they provide New Connection & Upgrade Services? No
- Do they support IGT meters? Ecotricity are yet to provide this information
- Do they support all electricity profiles including half hourly?Yes
- Do they support related and aggregated meters? Ecotricity are yet to provide this information
- Do they offer green and renewable products? Yes
- What is their Fuel Mix? 4.1% Gas, 1.3% Nuclear, 7.2% Coal, 86.5% Renewable
Other things to know about Ecotricity:The Stroud, Gloucestershire based business:
- Operates a domestic philosophy for their business energy customers, they operate the same rolling 28-day contract terms;
- The rolling 28-day terms are on a variable price basis, meaning the price can change with the market;
- Also offers a fixed priced one year contract;
- Has a business model that takes money from the ‘supply chain’ to invest in renewables, as a result their renewable energy fuel mix is increasing year on year;
- Is the only dedicated renewable energy generator in the UK;
- Offers smart meter upgrades for all meters and are inclusive for maximum demand meters (05-08);
- Does not apply out of contract rates;
- Owns Forest Green Rovers football club, known as the Green Devils, the UKs ‘greenest’ football club
SecuritySee Ecotricity’s latest contract terms for business non-half hourly electricity customers: Ecotricity NHH T&C’sAnd Half-Hourly electricity customers: Ecotricity HH T&C’sAre Ecotricity’s contracts fully fixed?No, Ecotricity offer a fully variable 28-day rolling contract, this means prices can change however Ecotricity provides at least 28 days notice of any change and customers can provide 28 days notice to leave supply.
Commodity: Inclusive, Variable Transportation: Inclusive, Variable Metering: Inclusive, Variable FIT: Inclusive, Variable (Electricity only) RO: Inclusive, Variable (Electricity only) CFD: Inclusive, Variable (Electricity only)Ecotricity also reserves the right to amend the terms of the contract in exceptional circumstances.These include:
- Where a change in law occurs affecting delivery of the contract.
- Where the customer fails to fulfil their obligations under the contract.
- Where gas customers fail to use the stated consumption under the terms of the contract.
Back billing and EcotricityEcotricity is not currently signed up to the Energy UK Back Billing standards. This means that Ecotricity are able, under the Limitations Act, to back bill their customers for anything up to 6 years. However Ecotricity have chosen to limit this to two years for all businesses when Ecotricity is the party responsible for the miscalculation.Many suppliers have voluntarily limited their back billing rights to two years and in some cases a single year.Whilst Ecotricity isn’t signed up to the Energy UK Back Billing standards they are following suit with its principles.Other suppliers who are not currently aren’t signed up to the Energy UK Back Billing standards continue to reserve the right under the Limitations Act, to back bill their customers for anything up to 6 years.To find out more visit our Guide to Back billing.
“Ecotricity and Letters of AuthorityIn order to act on your behalf in securing your business a great energy deal Ecotricity require us to have a signed Letter of Authority from yourselves.
eSign – Fast, Convenient Online ApprovalThe fastest way to authorise us to work on your energy supply arrangements is to use our eSign service to agree our Evergreen Letter of Authority.We’ll take care of all correspondence, handle all the loose ends and enable you to focus on establishing your business in its new premise.And what’s more once your contract is in place we’ll manage your supplier relationship from beginning to end, all part of the Business Juice service.
Change of Tenancy and EcotricityMoving into a premise is known as a Change of Tenancy in the business energy market. It has also been termed a Change of Occupier or is known by its acronyms CoT and COO. However it is referred to, the opportunities it opens up are the same.This is great news for deal seekers. Whilst the existing supplier is obliged to continue to provide energy to the new occupier, the occupier is not obliged to take out an extended contract with that supplier.Indeed a Change of Tenancy customer has total freedom of movement and is free to accept a contract with a supplier of their choiceThere are however of course a number of rules and requirements.Firstly, as the new occupier, if you use energy you will need to pay for it, regardless of your contractual status.Secondly, you will need to identify as quickly as possible the identity of the existing supplierThirdly, you will need to field calls from sales organisations and the existing supplier themselves offering you contracts of varying lengths to continue or to begin to supply the premises.As a result as a new occupier you will need to agree a new contract either with the existing supplier or with a new supplier of your choice.Not only that but you will need to inform the existing supplier as quickly as possible that you are the new tenant to prevent you being held liable for charges incurred by the previous occupier should they not have ended their agreement satisfactory.It can prove a real headache knowing whom to trust – whether it’s the old tenant, the landlord the current supplier, the pushy salesman ringing, knocking and emailing, the prospective new suppliers.That’s where Business Juice comes in, by working on your behalf, identifying your existing supply arrangements, reporting your change of tenancy, ensuring you are not held liable for costs not incurred before your occupation and benchmarking contracts for your selection we can help you save time, money and a whole lot of stress.
TransparencyIf your prices change, Ecotricity will provide you with at least 28 days notice of the new rates, you will then be able to leave after providing 28 days notice that you don’t wish to continue on supply at the new rates.In all other circumstances you are required by Ecotricity to provide 28 days notice of your wish to end the agreement.
Rollover contracts and EcotricityEcotricity uniquely operates a policy of 28-day rolling tariffs with no contract. As a result you do not have to terminate your existing contract by a specified date to avoid being automatically extended by 12 months, however your prices can change periodically if you stay on contract beyond the 28-day term.Although this is a unique proposition the nature of variable rates needs to be taken into due consideration. By using Business Juice we can help can avoid the potentially costly mistake of being exposed to disadvantageous variable rates.To find out more about rollovers visit our Guide to Rollover Contracts.
Terminating but remaining on supply with EcotricityIf you have provided termination notice to Ecotricity and expressed your intent for freedom of movement at contract end but you fail to leave Ecotricity’s supply you will be placed on Ecotricity’s “Variable Price Plan”.Don’t be caught out! By using Business Juice to manage your energy contracts we will terminate and manage your new contract seamlessly to ensure you avoid unnecessarily costly variable rates.
Ecotricity and Out of Contract RatesBecause Ecotricity operates 28-day contracts with 28-day notice to terminate they do not need to use out of contract rates. Instead a customer will be placed on their standard variable rate until such point as the customer leaves their supply. Where a customer inherits an Ecotricity supply, moving into a premise supplied by them, they will be placed on Ecotricity’s deemed rates which are currently 14.5p/kWh and £3 per day.Even one week exposed to this level of charges mounts up, that’s why clients taking our contract life management service makes sense: removing your exposure risk and letting you focus on your business confident in the knowledge that your energy contracts are in safe hands.To find out more visit our Guide to Out of Contract Rates
ConvenienceEcotricity operate a policy of billing their customers on a quarterly basis however if a customer has a functional smart meter fitted they will be billed on a monthly basis.We are currently awaiting clarification of Ecotricity’s policy on payment terms. To find out more visit our Guide to Supplier Payment Terms.Click here for Ecotricity’s VAT declaration certificate. To find out if your business is eligible for paying the reduced rate of VAT on your business energy bill visit our Guide to VAT Declaration.Ecotricity do not currently offer their customers online billing. This means Ecotricity customers will continue to receive paper invoices.Your Ecotricity invoice places the meter point identifying S Number or MPRN on the first page of the invoice in the bottom left hand corner.
EnvironmentalEcotricity only offer green and renewable business tariffs.For the reporting period 2013/14, Ecotricity’s Fuel Mix was:
- Coal: 7.2%
- Gas: 4.1%
- Nuclear: 1.3%
- Renewable: 86.5%
- Other sources: 0.9%
- And produced CO2 of 88.6g/kWh and High Level Radioactive Waste of 0.0001g/kWh
- Coal: 34.0%
- Gas: 25.6%
- Nuclear: 21.6%
- Renewable: 16.7%
- Other sources: 2.1%
- Producing CO2 of 428g/kWh and High Level Radioactive Waste of 0.0017g/kWh
Business Juice Top Tip By selecting a supplier with a fuel mix that suits your business’ environmental credentials you can gain access to a renewable solution without paying premium green prices. By using Business Juice we can match up your needs with appropriate the fuel mix and enable your business to take support renewable initiatives.To find out more visit our Guide to Fuel Mix.