Chamber News

Norfolk Chamber members service Chamber Utilities™ has published a free ‘Quick Guide’ and launched a Renewal Reminder Service to help chamber members avoid making costly mistakes on renewing energy contracts.

The guide advises organisations how to avoid falling foul of expensive ‘out-of-contract’ and ‘deemed rates’, which sting many businesses each year.

All business customers must either re-negotiate their contract or give adequate notice to terminate their services prior to a contract end date, serving up to 90 days’ notice. Failure to do so can result in over-inflated, uncompetitive ‘out-of-contract” or ‘extended/deemed rates’ until a new deal is struck.

The Quick Guide explains how and why the penalty charges occur and how to correctly manage existing gas and electricity supply contracts to prevent being subject to over-inflated energy prices.

With the busiest spring renewal period fast approaching, Chamber Utilities™ is advising organisations to act now to avoid financial penalties and the prospect of being locked in to an uncompetitive contract.

Chamber Utilities™ Renewal Reminder Service provides Chamber members with an automatic reminder before their energy contracts are due for renewal. Once members have registered for the service they are then notified well in advance of their renewal date to give them ample time to serve notice on their supplier. This ensures they won’t suffer from over-inflated Out of Contract tariffs and provides time to search the market and find the best deals possible.

“Companies which have contracts renewing between April and October should act now to avoid potential penalties,” said Gary Collins, Chamber Utilities™ Business Manager. “Suppliers require between 30 to 90 days’ customer termination notice to switch contract. Many businesses don’t realise this and are leaving it too late. Most organisations faced a 20% increase in renewal costs last year and the upward trend continues, so there is a clear financial imperative to test the market in an attempt to mitigate potential cost increases.”

The ‘Quick Guide to Out-of-Contract and Deemed Contract Rates’ is available free to download from: https://www.chamberutilities.co.uk/whitepapers.aspx

To register for the free Chamber Utilities™ Renewal Reminder Service, visit: https://www.chamberutilities.co.uk/renewal.aspx

Commenting on the producer price figures for January 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The January figures show a further significant slowdown in the pace of producer price inflation. Though the absolute figures are still relatively high, the trend is moving in the right direction and will contribute to the lower consumer price inflation we expect to see throughout 2012. This will ease the squeeze on both businesses and consumers, and will allow for a modest improvement in demand in the economy.

“The figures will reassure the MPC that with inflation set to fall, they were right to announce an increase in quantitative easing. But the welcome economic data we have seen in recent weeks should not lull us into a sense of complacency. Introducing policies to support growth should be a top priority, such as reducing red tape and implementing a credit easing programme to help improve the flow of credit to businesses.

Commenting on the manufacturing output figures for December 2011, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“These figures are stronger than expected and support our belief that the UK economy will avoid recession. The sector’s overall performance has been relatively weak in recent months. However, the December upturn is positive as it comes in the face of a tough austerity programme at home, and difficult challenges facing UK exporters in the eurozone.

“Every effort must now be made to build on the December improvement and strengthen business confidence. We hope that the MPC will announce an increase in quantitative easing later today, but this must be supplemented by policies to support growth. This means the implementation of effective credit-easing measures or an SME bank to improve the flow of credit to businesses. In the March Budget, we urge the Chancellor to announce meaningful steps that will empower businesses to create jobs and deliver growth.”

Commenting on the trade figures for December 2011, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The figures for December show a large narrowing in the trade deficit to its smallest level since April 2003. While we should not give too much weight to one month’s figures, this is still a welcome development and supports our view that a recession is unlikely. Although the re-balancing of the economy towards exports is moving slowly, it is reassuring that we are heading in the right direction.

“Given the problems facing the world economy and the ongoing debt crisis in the eurozone, British exporters will face a challenge to keep their positions in international markets. As the government perseveres with measures to reduce the deficit, it is clear that exports will be one of the main engines of our recovery. We now need to see a powerful national export drive with more support for businesses in areas such as trade finance, insurance and promotion.

“While low interest rates and a competitive pound will help, more must be done to ensure that British firms can compete on equitable terms. On their part, British exporters must reinforce their efforts to break into faster growing economies such as India, China and Brazil.”

Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“British businesses welcome the MPC’s decision to increase the Quantitative Easing (QE) programme to £325 billion. Although the benefits are not immediately obvious to the business community, quantitative easing plays a key role in strengthening the financial system and stabilising the wider economy. In the face of difficult domestic circumstances and the ongoing crisis in the eurozone, the decision was a sensible one.

“But QE would be more effective for businesses if the MPC included the purchasing of private sector assets in the programme, instead of focusing exclusively on gilts. Furthermore, it should be supplemented by other measures to boost growth and improve the flow of credit to businesses as it will not achieve its full potential on its own. This means implementing an aggressive deregulatory programme alongside a package of credit-easing measures or an SME bank.”