A Pass-through Contract:

July 7, 2022

As we will explain shortly, your bill is made up of several components which include a host of third party charges which your energy supplier will pass on to you.

What does this mean? It means that this type of contract can make your bills change each month due to these costs being passed through via your bills every month.

Pause People Tip: These type of contracts have been mis-sold in the past. Often they may have looked a lot more competitive when you look at your unit rates but often lots of additional charges are hidden. Be careful!

Why would I want to take this type of contract?

  • In a very stable time of market.
  • Consumer takes on more risk, which lowers the costs.
  • Enables you to benefit if costs fall in the future.
  • Good for clients who can shift usage patterns to avoid ‘expensive times’ such as lowering consumption during M-F 16:00 – 19:00 November – February.

Why would I not want to take this type of contract?

  • No budget certainty.
  • More administration burden as costs fluctuate.
  • If you consume energy during ‘expensive times’ you will be subject to very expensive charges.