How To Become A Business Energy Broker

If you want to become an energy broker, how do you get your organisation started. Do you immediately begin offering yourself out as an energy partner? Do you advertise your ability to procure the cheapest tariffs? Do you pride yourself on comparing business energy suppliers?

In this guide, we will look at how to run a successful energy brokerage and how to grow your business. Keep reading for the first steps in setting up an energy brokerage and becoming self-employed.

What is a business energy broker?

Energy brokers are intermediaries who help businesses and organizations find and secure the best energy contracts and rates for their energy needs. They act as a liaison between energy suppliers and customers, helping to negotiate and secure energy contracts that are customized to meet the specific needs of each client. Energy brokers can also provide market analysis, energy usage assessments, and ongoing support and management of energy contracts. The goal of an energy broker is to help businesses and organizations reduce their energy costs, improve their energy efficiency, and secure reliable and sustainable energy supplies. By working with multiple energy suppliers, energy brokers can provide a range of options and help customers find the best deals and rates for their energy needs.

What services do business energy brokers offer?

Business energy brokers typically offer a range of services to their clients, including:

1. Market analysis: Energy brokers assess the energy market and help businesses understand the options available to them, including different types of energy contracts, energy suppliers, and pricing structures.
2. Energy procurement: Energy brokers help businesses find the best energy deals by negotiating with energy suppliers on behalf of their clients. They have access to a range of energy suppliers and their offerings, which they use to compare and find the best options for their clients.
3. Contract management: Energy brokers assist with the management of energy contracts, including negotiating contract terms, managing billing, and resolving any disputes that may arise.
4. Energy consulting: Energy brokers offer energy consulting services to help businesses reduce their energy costs and improve energy efficiency. They can also provide advice on renewable energy solutions, such as solar or wind power, and assist with their implementation.
5. Energy billing: Energy brokers can manage energy billing for their clients, ensuring that bills are accurate and payments are made on time.

The services provided by business energy brokers can help businesses save time, money, and resources by simplifying the process of finding and negotiating energy contracts and managing energy-related activities.

Who Needs an Energy Broker?

An energy broker can be beneficial for companies of all sizes and in various industries. Some of the reasons why a company might need an energy broker include:

1. To save money: Energy brokers can help companies secure more favorable energy contracts, including better prices and terms, which can help companies save money on their energy bills.
2. To improve energy efficiency: Energy brokers can provide advice and recommendations on ways to reduce energy consumption and improve energy efficiency, which can help companies save money and reduce their carbon footprint.
3. To simplify energy management: Energy brokers can help companies manage their energy consumption, including monitoring usage and bills, which can simplify the energy management process and help companies focus on other aspects of their business.
4. To secure renewable energy contracts: Energy brokers can help companies understand their options for renewable energy and secure contracts for renewable energy, which can help companies meet their sustainability goals and reduce their carbon footprint.
5. To negotiate energy contracts: Energy brokers can help companies negotiate new energy contracts, including the most favorable prices and terms, which can help companies secure better deals and save money on their energy bills.

In general, any company that uses a significant amount of energy and wants to reduce energy costs and improve energy efficiency can benefit from the services of an energy broker.

How Much Do Energy Brokers Cost?

The cost of using an energy broker can vary depending on several factors, including the size of the company, the amount of energy used, the type of energy contract, and the services provided by the energy broker.

In general, energy brokers typically charge a commission on the energy contract they secure for their clients. The commission can range from a few percentage points to 15% or more of the value of the contract, depending on the energy broker and the type of contract.

Some energy brokers may also charge a flat fee for their services, regardless of the size of the contract or the amount of energy used.

It is important to note that while the cost of using an energy broker may seem high, the savings that a company can achieve through a better energy contract can offset the cost of the broker’s services. Companies should carefully consider the potential benefits and costs of using an energy broker before making a decision.

How many Energy Brokers are there in the UK?

It is difficult to provide an exact number of energy brokers operating in the UK. However, it is estimated that there are several hundred energy brokers and consultants providing services to businesses and households across the country.

The energy broker market in the UK is highly competitive, with many companies offering similar services and working to secure the best energy contracts for their clients. Some of the largest energy brokers in the UK have a national reach, serving clients in different regions and industries, while others may have a more regional focus or specialize in serving specific industries.

The number of energy brokers in the UK has increased in recent years as businesses and households have become more focused on reducing energy costs and improving energy efficiency. As a result, the energy broker market is expected to continue to grow in the coming years, offering more options for companies looking for assistance with their energy needs.

Do you need a license to be an energy broker?

In the UK, it is not a legal requirement to have a specific license to work as an energy broker. However, some energy brokers may choose to become members of professional organizations, such as the Energy Brokers Association (EBA) or the National Energy Services (NES), which have their own licensing and accreditation systems.

Having a membership with a professional organization can help to demonstrate an energy broker’s expertise and commitment to professional standards, and can provide clients with additional assurance that they are working with a reputable and trustworthy broker.

Additionally, energy brokers may need to comply with certain regulations, such as the Data Protection Act and the Consumer Credit Act, which govern the handling and storage of personal information and the provision of credit services.

Overall, while a license is not required to work as an energy broker in the UK, it is important for energy brokers to comply with relevant regulations and professional standards to provide their clients with the best possible service.

How much do energy brokers make the UK?

The amount of money an energy broker can make in the UK will depend on a number of factors, such as their level of experience, the type of services they offer, the size and number of clients they serve, and the commission rates they negotiate with energy suppliers.

On average, energy brokers can earn between 5% and 15% of the total value of the energy contract they secure for their clients, although this can vary depending on the specific circumstances of each case.

It is important to note that energy brokering is a competitive field, and brokers must be able to demonstrate a high level of knowledge and expertise in the energy market to be successful. They must also be able to effectively negotiate with energy suppliers on behalf of their clients, and provide a high level of customer service.

The earning potential for energy brokers in the UK can be substantial, but it also depends on their ability to build a strong client base and develop a reputation for providing high-quality services.

How much commission does an energy broker get?

The amount of commission an energy broker earns will depend on a number of factors, including the size and complexity of the energy contract they secure for their client, the commission rate negotiated with the energy supplier, and the broker’s level of expertise and experience in the energy market.

Typically, energy brokers earn a percentage of the total value of the energy contract they secure, which can range from 5% to 15%. However, this percentage can vary widely depending on the specific circumstances of each case, and some brokers may negotiate higher commission rates for particularly large or complex contracts.

It’s also worth noting that energy suppliers may offer different commission structures, including upfront payments, ongoing residuals, or a combination of both. Energy brokers will need to evaluate each opportunity carefully to determine the most attractive and profitable commission structure for their business.

Ultimately, the amount of commission earned by an energy broker will depend on their ability to negotiate favorable terms with energy suppliers and provide high-quality services to their clients.