With current events influencing the price of business energy, it is becoming increasingly difficult to work out what a good price for business energy actually is. There are currently over 3,000 energy brokers operating in the UK and over 20 suppliers, who all offer the best deal available in the market. The volume of potential providers and the threat of being mis-sold to by Energy Brokers creates a very difficult decision for businesses in what should be a very straight forward process. This can only add to the confusion and likelihood of being mis-sold energy contracts.
How to ensure you get the best deal
We believe there is a place for Energy Brokers to operate in the sector as they do provide a quality of service that some businesses require. However, this is conditional on energy brokers looking after businesses best interests whilst operating in a fully open and transparent way. In order to get the best deal, we suggest businesses obtain quotes from a number of suppliers and brokers, as well as using a price comparison site to ensure they are provided with a range of unit rates to compare. Not only will this give you a view of what a good price looks like, it would also give your business negotiating power to lower the price further.
It is also important to understand your business consumption needs and ensure that you are placed on the correct energy tariff type for the duration of the contract. Pass-through Vs. Fixed, half hourly meter or a 03/04 meter can often confuse businesses leaving them with the wrong contracts. Businesses should ensure they discuss their requirements fully and workout what is best for them rather than what is best for the provider.
This may sound like an onerous task, but obtaining quotes can be a quick and easy process that could end up saving your business £25,000 (our average claim amount) over the course of your contracts. With this in mind, taking time to shop around could really help your business allocate funds more appropriately.
Key questions when procuring energy
Using an Energy Broker can be a time saving exercise, but it can be very expensive over the length of the business contract. It is important to ask key questions of your Energy Broker to ensure you are getting the best price for the business.
- Why is this the right tariff for my business
- Can you provide quotes from all suppliers
- Why the length of the suggested contract x years and not longer or shorter
- How do you as the energy broker get paid
- How much are you being paid for providing this service
- If you are using an energy broker, we strongly recommend that you ask them how they are paid and the exact amount they will receive from your contracts.
Business energy is taking up a growing proportion of businesses annual spend with limited indications that this will change in the short term. Business Energy Claims are urging all businesses to ensure they aren’t being mis-sold to and to search the whole of the market to get the best available rates before committing.