Understanding The Term ‘Standing Offers’

A standing offer is a contractual term that refers to an offer from a service or product vendor to supply services or goods to a consumer under certain conditions. However, a standard offer in itself is not a contract. In fact, it comes in where there isn’t one, and the seller or the buyer incurs no legal obligation.

If you’ve recently moved into a new home, there is a high chance that your energy tariffs are charged on a standing offer basis. But, what does this standing offer mean, and how will it affect your energy costs?

What Are Standing Offers and Your Energy Tariffs?

The amount you pay for your electricity and gas usage depends on the energy you consume and your tariff. You have to enter a contract with your energy provider to get on a specific tariff.

However, if you move into a new house, you may be stuck with the provider’s billing rights to the property and probably stay on a standing offer plan. To get into a contract with the provider, you have to contact them to help you pick the ideal option for you.

Alternatively, you can choose to enter into a contract with another provider. The best approach when choosing a provider is to use a local comparison resource to guide you on how to compare electricity prices among the leading providers in your region.

Alternative for Standing Offer

Under a standing offer, the provider sets the price per unit of your energy consumption and can change from time to time. This option tends to be relatively more expensive than the market offers, which must abide by the federal government regulation on caps.

To get on the market offer, you have to sign a contract with your energy provider. The terms for the market offer can vary between retailers or based on the duration of the agreement, discounts, and other applicable fees.

Under the market offer, the energy provider still reserves the right to change the energy cost. The market offers or contracts come with a 10-day allowance within which you can cancel the contract legally without incurring penalties.

If you cancel a contract but continue to use the electricity provided by the retailer with your home’s billing rights, the contract reverts to a standing offer. However, this may vary from one provider to another.

How Can I Know If On a Standing Offer?

You are probably on a standing offer if any of the following factors apply to you.

If your market offer contract has expired. Most providers will move a consumer to a standing offer by default when their contract expires, and the consumer does not contact them for contract renewal.

You have never entered into a contract. After the deregulation of the energy sector, all existing clients were signed up to a standing offer by default. So, if you have never contacted your provider to discuss your terms or enter into a contract, you could be on a standing offer that can cost you a lot.

You have moved into a new home. When moving houses, it is vital to ensure that all necessities are taken care of to avoid inconveniences when you move in. Unfortunately, most individuals moving into a new property often depend on the moving company to sort out their energy-related issues.

And since the moving company may not know your preferred tariff, they often sign up a client to a standing offer, so you may want to follow up with your provider to establish your tariff.

You asked for a standing offer. If a consumer asks for a standing offer for whatever reason, they can have it.