How To Choose An Energy Broker For Businesses In The Uk?

The power market of the United Kingdom is complex. Many businesses struggle with high energy costs but cannot find suitable deals among complicated offers. Brokers guide business owners in the tricky world of energy. They find the best prices and terms that help businesses save money on their bills.

More than 3000 energy brokers in the UK are ready to acquire the best deals on your behalf. However, who should you choose?

Picking a reliable energy broker is a crucial step. A good broker will update you on trends and help you make smart energy decisions. But, finding the best energy broker for your business is challenging among such a vast number of individuals. In this article, we will share a precise process of choosing a reliable energy broker for your business.

Who is a Business Energy Broker?

An energy broker is an expert who helps you find the best energy contracts available. They work as suitable energy solution matchmakers. Business energy brokers are connected to specific energy suppliers. Within this network, they find the best business energy deal for you so you can save cash.

They usually offer top energy contracts at lower prices. Energy brokers also offer services for domestic energy. They can deeply analyse meter readings, compare cost-effective offers in the market, and provide you with precise suggestions to lower energy costs.

Differences Between an Energy Broker and a Consultant

Should you go to an energy broker or a consultant as a business owner? People still have big misconceptions about their roles. They do different things that we often do not notice.

First, see their differences at a glance on the table.

Points	Energy Broker	Energy Consultant
Key role	Finding the best energy deals.	Planning energy management.
Cost saving approach	Comparing market rates.	Business analysis.
Focus	Securing suitable deals.	Maximising energy efficiency.
Client relationship	Limited, or when needed.	A consistent relationship.
Payment	Commission/fees from suppliers.	Fixed service charge.

Here are the distinctions between an energy broker and a consultant in detail.

Fundamental role

Energy Brokers: The primary job of an energy broker is to find the best energy agreements for businesses and individuals. They are the middlemen between you and the energy suppliers. They earn commissions or fees from negotiated deals.

Energy Consultants: Energy consultants, on the other hand, provide broader energy management advice. Their key role is to improve energy efficiency. Unlike finding a suitable contract, they develop a long-term energy plan for a business. The plan may not even directly negotiate specific agreements.

Cost savings or business efficiencies

Broker: To save a business’s energy costs, brokers do two things. They find the best market deals and secure a long-term rate.

Consultant: They work for holistic business improvement. Their working process includes in-depth business analysis, efficiency enhancements and carbon footprint reduction. These cost-saving strategies are beyond just prices.

Focus on deals vs business activities

Broker: A broker focuses on energy deals and contracts. They are expert negotiators who focus on securing the best values. They organise contracts and renewals based on client needs. They rarely focus on in-depth business operations analysis.

Consultant: Consultants go through all business activities of a company. They develop a deep understanding of a specific business. In such a way, they can provide precise advice on maximising energy efficiency throughout operations. Undoubtedly, it is more than finding suitable contracts, focusing on broader operational impact

Client Relationships:

Broker: Brokers generally remain in touch with clients during energy procurement. They have limited involvement with the business until the next cycle.

Consultant: Consultants maintain ongoing relationships with clients. Their services include energy management support, regulations, and long-term planning.

Payment

Broker: For each successful contract negotiation, brokers get commission/fees from suppliers. The fee varies based on the client’s energy volume.

Consultant: Consultants charge service fees from their clients. The fee can be project-based or monthly. Their earning do not depend on energy suppliers or energy negotiations.

Read More: How Long Does It Take To Switch Energy Suppliers In The UK?

Who Should Choose an Energy Broker?

An energy broker can help anyone who needs a good energy deal. Many businesses face overpaying issues with energy bills, which a broker can quickly solve. They can save you valuable time and effort while looking for a cost-effective contract. They do research, rate comparisons, and negotiate with the supplier on your behalf. These are the big hassles you do not have to face. Instead, they will handle them for you.

If you have a business and are facing the following situations, you should contact an energy broker:

• The energy cost has increased suddenly.
• Lack of sufficient time to research and find a new energy contract.
• A search for better and cost-effective deals before a contract renewal.
• Need for an expert to handle all the procedures.

Some Drawbacks of Energy Brokers

Though brokers can propose you impressive energy offers, you may also face some issues while working with them.

• Brokers work with some specific partners. It can limit your energy rate comparison opportunities.
• Their services do not include business analysis and efficiency improvement. So, they will not think outside the box except to find a suitable deal.

Choosing an Energy Broker: What to Consider?

The success of reducing energy costs begins with finding a reliable energy broker. Before reaching out to a broker, do some research about them. Besides, ensure that you have considered the following points:

1. Check Supplier Partnerships

Energy brokers work with different energy suppliers. You should check who they are partnered with. In general, such information is mentioned on their websites. You should choose an energy broker with suppliers you feel comfortable working with. You should avoid a broker who has a partnership with suppliers with a bad reputation.

2. Seek Transparency

Beware of non-transparent brokers at any cost. They often hide commissions and fees, which can cause trouble in the future. If a broker claims some unclear upfront fees, the possibility is that their deal is non-transparent. You can simply check the terms and conditions and notice whether there is a full disclosure about any hidden fees.

3. Verify Expertise

A quick way to verify an energy broker’s expertise is to check their website. Knowledgeable brokers usually write customer guides and blogs and share market updates. Another secret to verify their expertise is noticing the website update frequency. The website should have content on the latest market trends. Expert brokers keep customers updated on changes so they can make wise decisions.

4. Consider Renewal Support

It is a known fact that energy contracts expire after a certain period. If you are working with a reliable broker, he/she will help you renew the deal before it is too late. The contract renewal support is a notable service of a good energy broker. Check your broker’s website and notice whether they handle it. Choosing a broker who actively helps secure new contracts will provide you with more conveniences.

5. Evaluate Ongoing Support

Switching energy suppliers and starting the contract is a lengthy process which can take up to 9 months. During this longer time, you may need support and information. Reliable brokers will inform you during this hold. So, choose a broker who offers responsive customer service for asking questions and getting updates.

Read More: Guide to Capacity Charges Per Month

Preparation Before Reaching a Business Energy Broker

When you have identified a reliable broker and decided to work with him/her, you have some preparation for the next step. Before reaching out to the broker, gather the following information:

• Your business address and contacts.
• The details of your present energy supplier.
• MPAN/MPRM number (The MPAN number is for electricity, and the MPRN number is for gas.)
• A signed letter of authority so they can act on your behalf.

Note: If you do not have details of your current energy supplier, your broker can handle that. You just need to confirm a few things, and they will do the rest.

How Much Do Business Energy Brokers Cost?

The cost of a utility broker is totally unpredictable. The reason is that brokers do not charge a payment directly. Instead, they get a commission from the energy supplier based on energy consumed by the customers. You cannot predict their commission rate since the unit rates and contract length vary.

However, some brokers apply hidden charges you may not even notice. So, before working with any energy broker, it is a good practice to check and clarify whether they have any hidden fees.

Taking the Decision

It is time to reach a final selection. Choosing the right broker is a long-term investment for your business to save money and improve energy management. So, there should be no rush. Take your time, research available options, and compare offerings from several brokers.

Transparency is a key factor here. Therefore, prioritise brokers who you believe are honest about fees and commissions. Besides, choose a knowledgeable broker with deep market understanding and a proven track record. You also must consider responsive customer service and ongoing support while choosing an energy broker.

Remember that your business’s goal is above all, and your needs matter. So, the best broker will be someone who puts your business’s objectives first instead of finding and comparing market rates.

FAQs on How to Choose an Energy Broker?

Q. Are energy broker services free?
Energy broker services may or may not be free. It depends on the specific broker and the services they provide. Some brokers may charge a fee for their services, while others may receive a commission from their energy suppliers.

Q. Can a broker help me find out my renewal date?
Yes, they can help you find out your renewal date. Energy brokers are knowledgeable about energy contracts and can assist you in managing your energy agreements.

Q. Should I not go directly to an energy supplier?
It may seem like you can save more on energy costs by going to an energy supplier. But, you still have to go through extensive market research, business cost analysis and rate comparison. It is a complicated and lengthy process that brokers do for you.