A Good Deal?
The truth is, it’s difficult to say if you’re getting a good energy deal.
More than anything else, an energy broker saves you time. They have access to a number of suppliers and contract options. They quickly compare data from different contract types, and are able to spot potentially problem clauses that a non-energy expert may overlook. In this way, they take away much of the effort that a business owner or purchasing manager would have to put in when securing a new contract.
Depending on the type of business that you operate, they may also offer additional services throughout the term of your contract. Whether it’s supplying and organizing consumption reporting, handling meter upgrades, providing market intelligence, or just being on hand to deal with any issues that you may have, the key to making sure that you’re getting value is for the broker’s fees to accurately reflect the services that they provide.
Ensuring Value For Money
This can be difficult, as brokers very rarely disclose their margins. Some brokers’ margins however are so high, that even small businesses end up spending thousands extra every year on their energy bills. This is despite the energy broker claiming that they would save them money.
It can’t be stressed enough that if you don’t feel you’re being offered a good energy deal, or if you feel the broker’s quotes are too high, you should ask them to confirm their margin in writing.
It also never hurts to ask a second broker to quote as well. If your broker refuses to allow you to bring in some competition, and insists on exclusivity, it could mean that their margins are high, and they’re afraid of having to compete with somebody else for your business.
Looking for a good energy deal? We’d love the opportunity to compete for your business, so contact us and see what we can do.