Everything you need to know about energy brokers and business energy brokers service
If you own or manage a business, you know utilities cost can be high—especially if your building is large, and requires constant electricity to operate and produce.
Because overhead costs often comprise a large percentage of energy consumption, it’s necessary to take a closer look at how much you’re spending, and if the costs are consistently high, you should research to see if there are better energy and utilities deals available.
Of course, not every business owner has the time to devote to comparing energy costs across potential suppliers. The good news is that a business energy broker can help, and can ultimately help secure you an energy supply contract that allows you to save money in the long run.
There are a few different types of energy brokers, but two of the most common are residential energy brokers and business energy brokers. Residential brokers focus on energy usage in the home, while business energy brokers focus on optimal energy efficiency for businesses.
An energy broker’s main job is to find and present energy suppliers that will offer your business the best deals. In addition, brokers are responsible for closely monitoring energy accounts, and keeping their clients abreast of when their contracts are about to expire. In the event of a transition to another supplier, they will also help ensure that the process goes smoothly.
Among the services that a business energy broker may offer are the following:
As remuneration for their services, an energy broker will take a commission on the total cost of energy that you use. Typically, commission rates vary by broker, though unit rates range from .05p to 5p per kilowatt-hour. At PES, we regularly perform market research to check that our rates are competitive and lower than market average.
Any large business that spends a significant portion of their revenue on energy costs (e.g. $20,000+/month) could benefit from a broker’s services. It may be nearly impossible for you to find the time to explore different options from other suppliers when business operations require so much attention. A broker will do the heavy lifting in this area, giving you peace of mind that you’re spending exactly what you need to on energy—no more, no less.
If you’re looking into energy brokers, you may also stumble across services offered by energy consultants. Don’t confuse the two: a broker will negotiate with suppliers and lock down the best prices for you, while a consultant will consistently study your business’s energy trends, identify possible inefficiencies, make suggestions, and more. A consultant’s job is ongoing, and may include services such as;
With climate change becoming a high priority subject and strict global carbon reduction targets, more focus is being put on the business community to transition to net zero and their carbon management. Most businesses will be paying tax per carbon ton emitted in the near future and larger businesses already do. A consultant will help you navigate the complex world of sustainability and provide strategies, technologies, and behaviors to achieve net zero.
As a business owner or manager, you may find that once you’ve employed a broker’s services, you also feel like you could benefit from a consultant’s expertise, as well.
At Professional Energy Services we are energy consultants but also able to provide a broker service.
We’ll begin by saying that no matter how good your energy broker is, it is not standard practice for a broker to compare the costs of every supplier. Most brokers will have a list of preferred suppliers they reference regularly based on their relationships, supplier stability and reputation and pull quotes from that existing roster of companies.
Among the suppliers they analyze, energy brokers may consider:
For a broker to begin the comparisons, you’ll need to provide the following:
These will help give your broker a frame of reference as they consider options for your business.
If you find that you make better decisions by weighing the pros and cons, here are a few pros and cons of hiring a business energy broker.
However, with this additional business expense it comes with the added value of the positives, also as mentioned in the costs of an energy brokers, the commission fees vary by broker.
A transparent energy consultant like Professional Energy Services will still be able to clearly demonstrate to you what you are saving on a new energy deal, including the broker fees.
There are over 3,000 energy brokers in the U.K in multiple different formats. However, even out of the accredited brokers, not all of them are also energy consultants. Keep in mind that smaller brokerages like Professional Energy Services, who also act as consultants, will be able to devote more time and personalized attention to your business as well as positive additional service.
Energy brokers do not need to be licensed like a supplier does, but it is good practice to be accredited. Typically, accredited energy brokers will be listed by the Utilities Intermediaries Association (UIA).
Professional Energy Services is accredited and listed on the UIA website, and is so transparent that we will openly share our profit margins on the tariffs you select.
Because of the lack of accreditation of some brokers, the market is unregulated and as such remains under the same jurisdiction as most trading standards issues. However, the landscape is changing with OFGEM announcing a change to the micro business sector holding brokers accountable to a code of practice.
If you would like to see if you can save money and reduce your energy costs then contact us for a free no obligations quote.