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How to avoid the renewal trap

Lock-in strategy

Most commercial accounts lapse from a fixed lock back into a variable default — and the supplier is not required to warn you.

Riya Mehta

Editorial lead

Lock-in strategy5 min readPublished Updated

Featured infographic

The renewal trap — what month 13 looks like without a re-shop calendar

Locked months 1–12 are predictable. Months 13+ silently re-price with the wholesale curve. The 60–90-day re-shop window is where the trap gets caught.

Open graph image · /og/renewal-trap.png

The short answer

Suppliers can roll your contract into a variable default by inaction.

The single most common procurement mistake is ending a fixed-rate term and rolling silently into a variable default rate at month 13. Suppliers can roll an expiring contract into a variable rate without a notification email — most retail customers only realise it when the next bill is materially higher than the previous month. This guide explains how the renewal trap works, the legal mechanics behind it, and the 60-to-90-day re-shop calendar that prevents it.

How the silent rollover actually works

When a fixed-rate contract reaches its scheduled end, the supplier has a regulatory obligation to keep supplying you electricity. In most state PUC frameworks the default behaviour is to roll the contract into a month-to-month variable rate, set by the supplier, with no notification requirement beyond the contract's original disclosure.

A typical residential rollover moves a 12-month locked rate of 11.8¢/kWh into a month-to-month variable rate of 14–18¢/kWh. The first post-rollover bill is materially higher; most customers do not investigate until the second or third high bill.

Some suppliers do send a courtesy "your contract is ending" letter. Most do not. The PUC does not require it.

The 60-to-90-day re-shop window

The cleanest defence is to re-shop the supplier 60 to 90 days ahead of contract expiry. Inside that window suppliers compete for renewal accounts because they can plan for the volume in their next-quarter book.

Re-shopping inside the window also gives you time for the EDI 814 handshake to complete before the old contract ends. If you re-shop too late (under 30 days), you may end up briefly on a variable default before the new locked rate begins.

Seenra automates this: every contract end-date stamps into a re-shop calendar, and the next-term comparison runs automatically inside the 60-to-90-day window.

  • Day 0: contract end-date stamps into the re-shop calendar.
  • Day -90 to -60: next-term comparison runs.
  • Day -45: e-signature on new locked offer.
  • Day 0: old contract ends, new locked rate begins same week.

How to set a manual reminder if you do not have a re-shop service

Without an automated service, set two calendar reminders the day you sign a new lock: one at 90 days before the contract end-date, one at 60 days. The 90-day reminder is the planning trigger; the 60-day reminder is the action trigger.

Pull the contract end-date from the signed supplier authorisation, not from the utility portal — utility portals sometimes show the supplier-of-record start date but not the contract expiry.

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Common questions

Quick answers from the editorial desk

Will my supplier email me before the contract ends?
Some do, most do not. State PUCs do not require it. The cleanest approach is to track the contract end-date yourself or use a re-shop service that does it automatically.
How does Seenra make money on a household contract?
When a household locks a supply contract, the supplier pays Seenra a small commission. The amount is disclosed up front in the offer summary in dollar-and-basis-point form. The household price is forever free.

Sources

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