Relevant Date Explained
The Relevant Date relates to energy contracts that are used to supply customers that fall into the category of a micro-business. This is a key date and one by which you will need to have already taken action to avoid paying more for your energy than you need to.
The Relevant Date is a pre-defined date that occurs at least 30 days, and no longer than 90 days before your energy contract end-date.
Most energy suppliers will define a Relevant Date that is 30 days before the contractual end-date, but do check your energy contract just in case it's longer.
Why is the Relevant Date important?
If you haven't sent Termination Notice to your energy supplier before the Relevant Date, they will have the right to automatically extend your contract. This contract extension will then be at a price and period as defined in either a renewal letter or the existing contract.
Remember that by sending a Termination Notice, there is nothing to stop you using your existing energy supplier again for the next contract; you are simply terminating the existing contract to stop it being rolled-over.
When can I send a Termination Notice?
Under new rules brought in by Ofgem on 18th January 2010, provide you are a micro-business you are allowed you to send a Termination Notice to your existing supplier at any time from when the contract is agreed, up until the Relevant Date. However, don't leave it till the last minute and make sure it gets there in good time. And make sure you also get a confirmation of receipt.
To help provide a reminder, energy companies are required to send you a Statement of Renewal Terms in sufficient time to allow you to take action. So when you get this letter, ignore it at your peril!