Business Renewals

Gas Usage – Take or Pay

Gas take or pay

Business gas users are often not aware of gas Take or Pay clauses within many gas suppliers contracts that allow them legally to invoke additional charges if your gas usage is outside of the nominated contract values. In a time when energy conservation is both a social and corporate responsibility as-well as a means to reduce overheads it would come as a kick in the teeth if you were charged extra for using less.

Whilst many suppliers are relaxed about these clauses it is worth knowing if your supplier has these terms in your contract.

Your expected usage will be declared as your “AQ” or nominated Annual Quantity. Tolerance levels from the nominated AQ’s vary from supplier to supplier but are typical ranges are 25% either way.

Business Renewals would strongly recommend that a take or pay friendly supplier be chosen if you have recently moved into a property as the AQ (Annual Quantity of gas) used by the supplier to set the initial contract up will be based on the previous occupiers usage and not necessarily on what your business will use.

If you need some expert help the team at Business Renewals are at hand if you would like a free no obligation discussion.

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