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.
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