Saturday, 27 December 2014

The truth behind becoming a broker

More than two thirds of businesses value the specialist help they get from their energy broker, according to a 2013 survey from OfGem. This statistic makes the prospect of becoming a broker increasingly appealing but the energy sale solutions that are currently saturating the market can seem confusing and sometimes conflicting. Whilst a sales intermediary service is typically the bedrock of an energy sales business, there can be many strings to a company’s bow and the role of an energy broker can now comprise of many different facets, including energy management consultancy.Rising energy bills, tough economic conditions and environmental pressures – the business case for having an energy management strategy has never been clearer, yet many businesses don’t know where to start. By stepping into the role of energy consultant, you can help to add a profitable new revenue stream to a business, improve customer loyalty and start helping customers save money today. So, first off let’s clear up the main differences between an energy broker and energy consultant that tend to confuse the uninitiated:



Energy broker:

•Usually carries out a one-off pricing exercise when contracts are due for renewal. This means that they are more likely to provide the best rate ‘on the day’ as price comparison checks must be made on the same day as the enquiry.

•In terms of payment, brokers are paid a commission by the energy companies which will vary from supplier to supplier.

•The more suppliers a broker represents, the greater the potential to obtain better prices.

Energy consultant:

•Consultants tend to monitor the energy markets all year round and so are better placed to advise the best times to purchase energy for the best rates.

•Will often offer to provide support and advice for an energy portfolio in short or long term agreements.
•Tend to work on either a flat-fee rate or contingency basis.

If you want to become an energy broker that forges good relationships with the big name suppliers then they will generally look for the two implicit promises that, as a respected broker, you should always make to your customers – to never misrepresent yourself or the supplier and to always allow your customers to see and understand the fees that you charge.

In an attempt to maintain standards within the industry, some suppliers are joining the Utilities Intermediaries Association which is a trade body for energy brokers. If you want to become an energy broker then this body highlights the standards that you should consistently be working at.

In attempting to understand exactly what an energy broker is and does, it is probably easiest to learn this by knowing the one thing that a broker is not – somebody who supplies the energy. Brokers do not own or distribute the energy and cannot sell energy directly to the consumer; they procure the rates from suppliers and assist their customers in making the most well informed choice that they can when it comes to purchasing energy.

For More Info About Energy broker UK visit us......

No comments:

Post a Comment