E.ON offering “blend and extend” style contracts…
Mid-term Review contracts: We all know that a longer term contract enables accurate budget planning, reduces workload, worry, and frequently delivers more economic prices. We encourage our clients to go long if they want peace of mind and less workload, after all, you save time by negotiating prices once per five year cycle instead of once per year.
Whilst clients agree with the benefits of a long term contract, some are reluctant to commit to a longer term contract because they don’t want to be caught out should there be a fall in commodity costs mid-contract.
If you share this fear about long term contract commitment, E.ON’s Mid-term Review contract is here to address your concerns.
Using “Blend and Extend” principals, E.ON’s Mid-term Review contract enables you to secure a long term contract, and have the option to revisit the prices mid-contract should prices dip.
E.ON’s Mid-Term Review contract offers the best of both worlds. You can enjoy budget certainty for the long term whilst having the option to revisit agreed rates one month before the mid-point of the contract should wholesale prices fall. In essence you would be able to blend and extend prices to ensure you can take advantage of a price reduction sooner rather than waiting for the contract to lapse.
The key points regarding E.ON’s Mid-term Review product are:
• Flexibility – you have the potential to benefit sooner should the wholesale price of energy fall within the first half of the contract.
• Simplicity – accepting a Mid-term review gives you budget certainty for the extension period.
• Minimised Risk – You are not effected should prices increase, you review and decide at the mid-contract period if you wish to effect the blend and extending of prices.
• Support – both your Direct Power and E.ON account manager would be on hand to guide you through any Mid-term Review.
So if you like the idea of a long term deal, but want an insurance should prices fall, get in touch to discuss how E.ON’s Mid-term review could work for you. If you are already on contract E.ON, give us a call and see if this option is available to you with the contract you are currently on.