What a transparent and profitable electricity contract should contain — What to check before signing a new contract

A contract for the supply of electricity at freely negotiated prices may be concluded with any commercial entity that holds a license to carry out the activity “trading in electricity”. Information about all electricity suppliers and licenses issued to them is available on the website of Energy and Water Regulatory Commission (EWRC).

Business customers, when choosing a supplier at freely negotiated prices, should bear in mind that their chosen electricity supplier must also be the coordinator of a balancing group in accordance with the Electricity Trading Rules.

It is imperative that customers are well aware of the terms of the contract, especially in the part with penalties and deadlines. Each provider offers different terms, with some being more flexible and customer-oriented, others offering contracts that are not clear enough for the end user. In addition to the specific and clear terms of the contract, presented in understandable language, it is good for the customer to make sure that the respective supplier company has the necessary experience in the market.

Having received offers, carefully study all the conditions of the contract presented to you, it is worth paying special attention to:

• the term of the contract and whether it guarantees the delivery for the period by the trader, under the agreed terms through penalties. It is important that the penalties in the contract are the same for both parties — this ensures that the trader cannot change terms and conditions unilaterally;
• collateral requirements and fees;
• payment methods;
• payment term;
• deposits or prepayment — whether such are required;
• are there hidden clauses for additional payments related to the costs of balancing or participation in a standard balancing group — in the case of secure providers, all such costs are included in the price and are not paid separately;
• are there any clauses obliging the provider to provide information about your consumption at your request;
• service — can you rely on expert assistance from your dealer's team at any time

Customer service is no less important than all other factors. Customers should be served with care and assistance in all procedures for the transfer of lots, as well as to have the support of the supplier during the conclusion of the contract and for any unforeseen situations that may arise in both parties.