Business energy brokers, also known as commercial utility brokers, are used by 50% of businesses to help them choose better deals on their energy provider.
Given the current economic climate it’s extremely important to make sure you are getting the best deal for your current energy use.
In this piece we will be diving into what a business energy broker does, reasons you should use one and the typical factors that can affect energy prices.
What is a business energy broker?
Put simply, business energy brokers help companies choose the best energy deal for them. This involves comparing the best gas and electricity details (as they aren’t offered as one service) and providing a variety of options to businesses for them to choose from.
What does an energy broker do?
As mentioned above, business energy brokers provide the best energy options to businesses. Throughout the entire process they collect information about your current consumption – this is important as it can help you spend less money.
They also take charge of the switchover when businesses have decided which option they want to go for next.
Why use a business energy broker?
There are many reasons you can benefit from using business brokers, including:
- Saving money: first and foremost, this is likely to be the main reason you’re looking to switch energy providers. It is unsurprisingly common for businesses to be paying much more than is necessary for their current energy usage – in fact, British businesses are losing almost £1.4m every day on expensive energy contracts, many of which are unnecessarily priced given the size and needs of the business. Energy brokers’ relationships with energy providers and consistent monitoring of the market can help you save as much money as possible.
- Avoid a rollover contract: if you don’t cancel or renegotiate your current deal before it expires, you could end up on a rollover contract which means you’ll be paying more for your energy. The terms of the contract can also prevent you from switching to a better deal as your current supplier can stop this by claiming that it is a breach of contract.
- Saves time: researching different providers can be very time consuming when your schedule is already very busy. As you’ll need to get separate gas and electricity quotes, this adds even more time into the mix. At Essential Utility Solutions, we can compare over 100 energy tariffs in as little as 60 seconds.
- The complex paperwork is out of your hands: business energy brokers handle all the paperwork so you don’t have to. All you have to do is choose the best deal from your list of options and they will take care of the rest.
- Get better deals: thanks to their existing relationships, business energy brokers can get you a wider range of deals than you can find yourself online. In the same sense, they are also able to negotiate a better deal for you – at Essential Utility Solutions, we’re honest and impartial and will have your best interests in mind.
How our services work
Step 1: Compare business energy prices using our form. We only need a few details.
Step 2: Take a look at your different options and consider which one is the best for you.
Step 3: Select the best option for your needs.
Step 4: We’ll take care of the rest and manage the switch.
Can you get gas and electricity from the same supplier?
As mentioned earlier, gas and electricity most commonly come as separate offerings which put together are your ‘energy’. However you can have something called a dual tariff. A dual tariff essentially means that you receive both gas and electricity from the same supplier, which can be a great way to save money. However, it is more common for people to purchase gas and electricity from different suppliers.
How much should you be paying for business energy?
There is no one-size-fits all answer to this as there are so many factors that affect pricing, such as:
- Type of business: those who operate within 9-5 hours will typically be charged more in comparison to businesses that use most of their energy in the evenings and weekends. This is because during the typical working week there is more demand on the network.
- Size of business: it goes without saying that the bigger your business, the bigger your need for electricity.
- Your credit rating: some energy suppliers require high credit scores – if you don’t have this, you might be looking at more costly contracts. Some suppliers give a little bit of leeway to attract more customers.
- The amount you use in a year: this is something that business energy brokers will take into consideration when trying to get you the best deal. Again, the more you use, the more you are likely to be charged.
- Location: the place your business is based can affect your pricing plan by up to 20%. City-based businesses tend to pay less for energy than those further out. There are also multi-site offers available if you operate in multiple locations.
- Using the same supplier for electricity and gas: as mentioned earlier, a dual tariff can save you money in the long run.
Pros and cons of using a business energy broker
There are many good reasons you should use a business energy broker, but of course there are also factors to consider.
Pros
- Saves time and money: as explained in more detail earlier, time and money are both valuable to businesses, so saving wherever you can is highly beneficial.
- Access to industry expertise: business energy brokers know the industry inside and out and can negotiate the best deal for you thanks to their existing relationships.
- Keep an eye out on your current contract: avoiding a rollover contract will mean that you aren’t unknowingly locked in another and spending more money. We can help you plan ahead and take control of the switch.
Cons
- The industry isn’t very well regulated, therefore prices can vary greatly broker to broker as commission prices differ. We provide a no obligation service that is impartial and honest.
- Going directly to energy suppliers can sometimes bring costs down, however you would need the skills and negotiating knowledge to do this as effectively as an experienced broker can.
How much could a broker save you?
That depends on how much you’re paying right now. If you’re overpaying for energy that you aren’t using, then a business energy broker could potentially save you a lot of money.
You could save up to 45% on energy renewal simply by entering your details and getting a quote from us – find out how much you could save now.