What is the role of an energy broker?

Energy brokers act as intermediaries between businesses and energy suppliers. They have the expertise and knowledge of the energy market and can help businesses find the best energy contract for their energy needs.

Energy brokers like us work with a range of energy suppliers and have access to the latest information on pricing and tariffs, helping businesses negotiate with energy suppliers to get the best deal on energy supply.

Energy brokers also help businesses manage their energy costs by providing energy management services. They can organise bills and payments, take meter readings, and monitor energy consumption to identify potential cost savings, as well as advise on energy efficiency and sustainability, helping businesses reduce their energy consumption and emissions.

Understanding Your Energy Contract

An energy contract is an agreement between an energy supplier and a business for the supply of gas and electricity to the business premises. It is a legally binding document that outlines the terms and conditions of the energy supply. The contract includes details such as the unit rate, standing charge, and any other additional charges.

The unit rate is the price per kilowatt-hour (kWh) of energy consumed, while the standing charge is a fixed daily charge that a business needs to pay for energy supply. Other additional charges may include capacity charges, network charges, and metering charges.

Businesses can save a significant amount of money by finding the best energy contract for their energy needs. However, finding the best deal can be challenging, as there are many energy suppliers in the market, each with different pricing structures and tariffs. This is where energy brokers come in; they can help businesses navigate the energy market, understand the jargon, and find the best energy contract for their needs.

Now, let’s break down the terms you’ll find in a typical business energy contract.

Tariff type – The tariff type refers to the pricing structure of the energy contract. There are various types of tariffs, such as fixed rate, variable rate, and flexible tariffs. An energy broker can help you choose the right tariff type based on your business’s energy usage and budget.
Contract length – The contract length refers to the duration of the energy contract. It can range from 1 to 5 years, and sometimes even longer. An energy broker can help you negotiate a suitable contract length that aligns with your business’s long-term goals.
Energy supplier – The energy supplier is the company that provides energy to your business. There are many energy suppliers to choose from, and an energy broker can help you compare prices, contract terms, and other factors to find the best supplier for your business.
Meter type – The meter type refers to the type of energy meter installed at your business premises. There are various types of meters, such as standard, half-hourly, and smart meters. An energy broker can help you understand the advantages and disadvantages of each type of meter and choose the best one for your business.
Billing – The billing method refers to how your energy supplier calculates and bills you for your energy usage. There are different billing methods, such as monthly, quarterly, or bi-annually. An energy broker can help you negotiate a billing method that works best for your business’s cash flow.
Renewable energy – Renewable energy refers to energy generated from renewable sources such as solar, wind, or hydro. An energy broker can help you find energy suppliers that offer renewable energy options and negotiate a suitable contract that aligns with your business’s sustainability goals.
Energy efficiency – Energy efficiency refers to measures taken to reduce energy consumption and costs. An energy broker can help you identify areas where you can improve energy efficiency, such as upgrading to more efficient lighting or HVAC systems, and help you find suppliers who offer energy-efficient solutions.

Things to be wary of when selecting a new Energy Broker

Firstly, there are certain language brokers may use to entice you. Here are some to look out for:

“Guaranteed savings”: This is a common phrase used by energy brokers to entice customers to switch to a new energy provider. However, be wary of brokers who promise guaranteed savings, as there are many factors that can affect energy prices, such as market conditions and the weather.
“Limited time offer”: Brokers may use this phrase to create a sense of urgency and pressure customers to make a quick decision. Don’t be rushed into signing a contract without doing your research and comparing offers from multiple brokers.
“Exclusive deal”: Some brokers may claim to have access to exclusive deals or offers that aren’t available to the general public. However, these deals may not necessarily be better than what you can find on your own.
“Switch now, worry later”: This type of language suggests that switching to a new energy provider is a no-brainer and that you don’t need to worry about any potential issues down the line. However, it’s important to thoroughly review the terms and conditions of any new energy contract and understand what you’re agreeing to.

Also, watch out for these tactics:

Watch out for brokers that simply ask for verbal consent.

Currently, verbal agreements are legally enforceable. It’s simple to get caught off guard; a simple phone call agreement might lock you into a contract that will cost money to terminate.

Watch out for brokers that merely ask for your signature without providing you with any papers.

They may have seduced you over the phone by promising to handle the specifics. Even though we all know not to sign anything until we have the contract in hand, many of us still fail to do so.

If they decline or avoid delivering you papers, there’s a potential that there are unstated fees and commissions that will seriously hurt your wallet.