There is nothing like having a splendid day operating your business. All seems fine – the stock and inventory supply is not facing any issues, the financial department sees no errors with the cutoff’s budget, and workers handle client inquiries perfectly. But then you receive an email.
It states that your current energy supplier is about to bust. Now, such a sudden predicament might cause you to freak out.
After all, you get your gas and electricity from your local energy provider.
In addition, you are in the middle of a work period. This means cutting clients off with an operation halfway through is not an option you are willing to take.
So what will happen once your supplier is about to go out of business once and for all? What happens to you?
Business 411: Resources to Operations
Not because your gas and electricity provider is about to halt their business, it means the same for yours. You might be asking where else could you get your resources if any issues happen? Should you shut the business down? Could you get an alternative for this?
Here’s the answer to all your business energy provider 411. The resources that make your industry operate will not suddenly magically shut off due to this revelation.
The resources that make your computers, lights, and equipment function will still pump out through your lines.
That is high time you start looking for an alternative energy provider while still having the resources at your disposal.
A lot of business owners do so in a panic, but you don’t have to be one of them. What you can do is look for a better tariff that suits your business’s needs. There are several out in the market, and all it takes is for you to choose one.
You can get some professional assistance once things get too complicated or once you do not have the time to do so. A Utility Bidder can take care of that for you.
But while a third party or entity is out perusing the online world for a better opportunity for your industry, what happens to your ongoing operation? Will it stop?
Not at all. That is when OFGEM enters the scene. OFGEM or the office of gas and electricity markets will handle your business so you can take a breath of air.
They are the country’s leading energy regulating board that handles all things energy-related. They make sure that no energy supplier goes above and beyond with their prices.
Not only that, but the agency monitors how the market progresses as gas and electricity prices perform an erratic dance.
OFGEM to the Rescue
OFGEM will make sure your gas lines and electric connections will not be cut short due to the current provider’s closure. What happens is that they will assign a temporary energy supplier with one role to play.
That is to provide you with resources, so your industry does not have to shut down, even for a temporary period. They will have what is called SoLR or supplier of last resort.
They have the responsibility of providing you with energy until you locate a provider that works well with your budget and other terms. Then again, you can even choose the supplier of last resort as your new one.
It has happened in the past for several business owners. However, you have to consider a number of things before settling with your SoLR.
Take note no two suppliers have the same conditions and rates for their resources. Small-scale energy providers might have a fair rate for their gas and electricity. Others might charge you even more.
In addition, you must adhere to any conditions they might let you know. It can get chaotic from time to time, but suppliers sometimes have reasons.
Why Do They Set Out Conditions?
One, they do not want to deal with transitioning business with accrued credit under their accounts. That means any enterprise that has an unpaid amount cannot work with these suppliers.
After all, no one wants to pay an amount another person – or in this case, business – has incurred after utilizing resources over time. Not only will a supplier of last resort pay that amount, but they will also provide energy while the tariff switch happens.
All in all, they will only benefit from it once the customer decides to stay for the long haul.
Second, some energy providers will only want to take in customers who are dead-set on staying for a long time. Most businesses will want to switch from one energy supplier to another once prices go up, which is fair. However, these providers are forcing your hand to stay with them even when rates begin to skyrocket.
Again, it sounds absurd, but there are some points they consider. It is not all about greed and profiting from someone else’s plight. These providers will work deals that are just and well with OFGEM’s standards and regulations.
Authority to Punish
Speaking of OFGEM, they have the authority to punish and deal with any energy supplier who goes over the line with their operations.
Think of it as gas and energy justice. However, it can be a long and painstaking business to handle such trifles. Not only that, but it costs even more money and time to settle it.
So business owners are smart – they prefer to stay on the safe side of the energy law.
But OFGEM is not all about the ban hammer and overseeing. Like how a utility bidder does, they will locate any opportunities for your enterprise to grow. They will conduct talks with partners and other institutions you can partner with in the foreseeable future.
So not only will your energy keep on coming, you will get to have better chances at thriving in the market. There is nothing like hitting two birds with one stone.
OFGEM will not also abandon the closing energy company. They will guarantee that all of the suppliers’ customers settle any amounts or conditions they need to before things close down for good.
As A Final Note
There is no need to sweat it once your energy provider is about to go bust. OFGEM will take care of your business’ gas, electricity, and other energy-related needs. They will handle all of it, while you, on the other hand, can keep on operating your side of the business spectrum that keeps things running smoothly.