4 questions to ask your Energy Broker
When setting up or running a business, it’s easy to get confused in terms of who offers the best value for money. Managing costs are critical to every business and using an energy broker is popular amongst many businesses who are keen to secure the most competitive rates on their electricity, gas and water.
When negotiating with a broker, there are certain questions you should ask BEFORE deciding whether or not to use their services: –
How are you paid?
They might charge you a fixed fee, either as a one-off or annually. Alternatively (and most commonly) they will apply an up-lift or mark-up to the unit rates they secure from the Supplier. Ask your broker which method they use. If it’s the up-lift, make sure you don’t sign anything until they have disclosed how much up-lift they propose to add to your new rates
At Pickwick Cross we believe in being transparent in terms of our commissions – we feel this builds trust.
What differentiates you from other energy brokers?
Like with any service, you want to the best for your business. You want to feel comfortable knowing that you are receiving value for money and, just as importantly, they will support you should issues arise once your new contracts go live.
It’s fundamental, but you want to be choosing the right company that can not only demonstrate how good they are but also how they are going to work with you.
For example, you could ask; “Can you give me details of other Clients you have worked with?”
“Are they happy for me to contact them to establish the quality of service you delivered for them?”
How many suppliers do you have relationships with?
Most people are aware of the so-called ‘Big 6’ Suppliers but in recent years many new providers have entered the UK market. This is great for UK businesses – more choice means greater competition and, ultimately, better prices.
Asking an energy broker how many suppliers they work with will give a better indication on how many can be contacted to offer deals and prices (we work with over 20 in the UK). The more options that are available, the better the outcome.
Can you guarantee you will offer me the cheapest rate you can find?
Some brokers have preferred terms with a small number of Suppliers and will often promote their rates ahead of others, even if they aren’t necessarily the cheapest. Make sure your broker guarantees to provide you with the lowest rates they can secure, rather than those which pay them a higher commission or pay them more quickly.
Choosing the right broker is key to maintaining a smooth and cost-efficient solution for your business. If you would like a free consultation, please contact us.
