Accredited Business Energy Brokers
Table of Contents
If you think the energy market is too complex to understand, or just don’t have the time to trawl the market, then a broker service could help you.
These services work in the same manner as other brokerage organisations. Brokers undertake the heavy lifting on contract negotiations for you as they’re the intermediary between your business and the energy companies.
Many Third Party Intermediaries (TPIs) have specially negotiated deals that others can’t access. These bespoke service offers could provide even lower prices than dealing direct.
The industry usually works on a commission basis. TPIs receive complex pricing matrices from the power companies and add a flexible margin to cover expenses via their online portals.
Your final pricing quote always includes any commissions with no additional costs or brokerage fees payable.
You won’t receive a separate invoice for any services provided. Standard procurement services shouldn’t attract any service charges at all, although specialist tendering products unique to your company are likely to be chargeable.
Business Energy Broker Step-by-Step Guide
|In order to find current electricity prices from our broker system, enter your details into our quote form.||Enter Your Details|
|You’ll be presented with a range of tariff options from our database of suppliers. Select the one that best matches your requirements.||More Information|
|Once you’ve selected your tariff, our energy broker team sets up your new contract with your new supplier and handles the switch.||More Information|
In a nutshell, they’ll find you the most appropriate tariff then switch your business electricity contract for free. The work involved includes obtaining your consumption data, matching it to the right supplier, activating the contract, and implementing management systems as appropriate to your needs.
Other services may include invoice reconciliation, ensuring you have the most efficient meters for your property, and general energy efficiency advice.
Summary of Services Available
|1. Whole of Market Quotes||Once you’ve instructed your broker, they’ll prepare prices from all suppliers operating in the marketplace. They have access to live rate-book pricing data to find the cheapest options available.|
|2. Manage Your Switch||The broker handles all communication with your current and new supplier. They’ll ensure the switching of contracts occurs efficiently, and that your new bills are accurate.|
|3. Renewal Reminders||All customers are contacted before their contract renewal date to ensure expensive rollover rates are not activated. This timely service keeps you on optimal prices.|
|4. Management Information||To assist with energy efficiency, consumption reduction, and analysis, your broker has access to your usage data. They’ll help you manage your costs with their expertise.|
The Utilities Intermediaries Association (UIA) provides an accreditation system for all UK energy brokers. The UIA uses a “code of conduct” framework to ensure fair play by demonstrating they offer an impartial service to their customers.
Companies have to demonstrate that they’re real businesses and have helped other organisations in the procurement process. To join, candidates have to provide the last six contracts they’ve negotiated. The role of UIA is to promote the non-domestic industry by ensuring businesses can purchase through these consultants with total confidence.
Members must adhere to a code of conduct to continue to receive their accreditation status. Members of this trade organisation have a full resolution procedure in case of any complaints made against them.
The UIA Articles and Memorandum of Association outline the requirements new members need to satisfy to become a member. The UIA website has full information on membership levels.
Deciding to use a reputable specialist adviser can help guide you through the complex market and reduce your energy costs. However, there are also several disadvantages to be aware of that could affect your choice of supplier.
Benefits of Brokers
The main benefit of using a third-party is leveraging their industry knowledge and buying power to help keep your costs as low as possible. There are other advantages as follows:
- A knowledgeable third-party handles all tariff negotiations.
- They can instantly find the right tariffs from a range of over 15,000 options.
- The broker switches your tariff to your new provider on your behalf.
- This process saves you time and money to ensure you’re on the correct rates for your premises.
- Some companies offer additional services such as invoice validation, carbon offset reporting, management software, and contract reminder services.
Drawbacks Within the Industry
The industry is not yet fully regulated like the non-domestic market for homeowners. Other disadvantages often apply to smaller brokerage companies.
- Regulation of the commercial side of the energy industry is minimal, although Ofgem has proposed plans to close the gap with the residential sector.
- Commissions vary greatly by supplier, so you could end up with a tariff that’s more expensive.
- Going directly to your power company could reduce your costs, although it takes time and knowledge to negotiate effectively.
- Not all brokers leverage the same buying power. A smaller organisation is likely to have higher prices than the brand leaders.
Most small brokers have the same gross pricing matrices provided to them by the energy companies. They flex their commissions to provide competitive prices. Some larger brokers may have exclusive deals, including our consultants, who often beat most market offerings.
Take advantage of our broker service by using our online quoting system.
The UIA listings above exclude many of the online websites you may have come across. Energy companies are not listed because they only sell their own services. So how can you choose a company that’s right for your business? There are three routes as listed below:
- Select a company that’s local to your organisation so you can discuss issues face to face.
- A recommendation you may have received from a friend or colleague is the preferred option.
- Always choose one that’s UIA accredited (see above).
Some non-accredited companies may cold call you in an attempt to win your supply. We recommend you do not use these services as the tariffs proposed are likely to be higher than the lowest prices on the market.
To find out more about procurement solutions, please contact us on 0800 690 6008.