Energy brokers advise all types of businesses in regards to how they can reduce their bill and the other advantages about switching energy suppliers.
For businesses to look at switching energy suppliers and identifying which one will save them the most money can prove a very time consuming, costly and painstaking task. This is due to the lack of expertise and knowledge of the industry and what to look for. It could be that initially it’s cheaper, but there are additional charges which will cost more over a year than another energy supplier for example. This is pretty much the same as the insurance industry and those looking for cheaper/better value for money.
Determining if you need an Energy Broker
The Utilities Intermediaries Association suggests asking yourself four questions to help you determine if you are better off managing your energy needs alone or enlisting the help of a broker or consultant:
- Does an employee or senior member of staff have the time to do a thorough search and job of finding what’s required for the company?
- Does the energy bill take a significant chunk out of the profits that the business makes?
- Does the person within the business tasked with finding the energy solutions, able to make the best cost-effective deal?
- What happens if the deal goes wrong due to one reason or another; can the person solve the problem?
Depending upon the factors listed above that a business must ask themselves, it could be beneficial or not, in some cases. Additionally, if you are still unsure as to whether or not your business is receiving the best energy deal, there are other indicators to help you decide.
1. In-house Market Expertise or Outsourcing
Businesses are increasingly outsourcing certain tasks and elements due to the cost effectiveness, lack of expertise in specific areas and the convenience. For example, marketing activities are often outsourced, so why not outsource energy procurement?
Every business should ask them-selves if they have the expertise and time to look into the many different energy tariffs and read through every energy supplier’s small print and keep up to date with ever changing government legislation.
2. Strategic direction
It’s a good idea for businesses to have a strategic direction for every part of their business and energy is no different. There are certain aspects in which, an energy broker will check in order to ensure that a business gets the best possible deal, these are as follows:
- Compile data report, ready for approaching the energy supply market;
- Search the entire energy market for the best possible gas and electricity contracts;
- Provide recommendations in regards to choosing the correct energy supplier, contract term, rate structure and so forth
- Guiding the business in terms of the industry drivers within the wholesale market to help assist with choosing when to purchase;
- Negotiate on the price quoted and if necessary, the contractual terms on behalf of the business and ensuring the terms and conditions are understood and fit for purpose;
Again, if there is an employee working within the business that would be up to carrying out the above tasks, this could also be an ideal solution.
3. Finding ways to reduce consumption
In addition to all the other points energy brokers and consultants can also provide advice on the following, key areas:
- Highlighting inefficiencies and how these can be improved
- Suggesting improved energy efficiency methods, including; lighting, insulation etc.
- The ability to cross-reference the highest level of energy consumption with other optional suppliers
- Assisting with the installation of low carbon energy and on-site renewable generation.
Just remember that when it comes to making the most effective decisions, timing is everything. This is because wholesale energy costs and legislation within the industry are constantly changing; not being able to monitor the energy market effectively could cost a business thousands of pounds due to wrong timing. Therefore, this makes timing the most important element when choosing whether or not to change energy supplier.
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Jonathan the author of this article has worked as an energy broker for many years and has vast amounts of experience, expertise and knowledge.