When running a micro or small business, it can be hard to find the best energy deals on the market yourself. But a business energy broker can help you achieve this, so you can save both money and time. This is because business energy brokers have good relationships with energy providers. This means they can negotiate great business energy contracts for your business.
No wonder, small businesses prefer using business energy brokers, and some studies have indicated that many small business owners tend to get the right business energy contracts that match their business models when they use an energy broker. There are many reasons why small business owners should seek the services of an energy broker. This page discusses why small businesses should use energy brokers.
Business energy is a more complicated product than household energy, so a business energy broker can help you if you want to understand about the energy that is right for your business. A business energy broker can do several things on your behalf including comparing business energy prices for both electricity and gas, negotiating your energy tariff, and handling your switchover.
Remember that you have to pay for these services through an upfront invoice or a commission that is added to your energy usage. While a business energy broker focuses on finding the right energy deal for your business, they can also handle many other activities.
A business energy broker can negotiate your business energy contract. This means that they can negotiate which business energy tariff your business should be on and the cost of business energy. They usually do these so that your business can be on the best business energy deal.
A business energy broker can also gather business energy quotes from several business energy providers, saving you a lot of time and effort. An energy broker focuses on finding the most ideal option for your small business.
An energy broker can also help manage your energy switch. If you decide to use a business energy broker to change business energy suppliers, then they can handle the switching process on your behalf. This includes arranging the start date of your energy contract and making sure that the details on your energy bill are accurate.
Also, an energy broker can help with your business contract renewal. This means a business energy broker can remind you when your business energy contract is about to expire and advise you on the best energy solution for your business.
A business energy broker can also help to resolve energy bill disputes. If you choose to work with a reputable business energy broker, they can handle various activities including sorting out energy billing discrepancies or disputes with your energy supplier. You can visit https://www.utilitybidder.co.uk/ to learn more about the various services offered by reputable business energy brokers.
You should note that you need to offer your business energy broker a Letter of Authority to handle all these activities on your behalf. This document specifies what you want your potential energy broker to do and the information they can gather. But the wording of this document should not legally bind your business to use the services of an energy broker. It should also not lock you into a business energy contract, give the energy broker exclusivity, or allow the energy broker to sign business energy contracts for you.
As explained earlier, the most common way a business energy broker makes their money is through commissions. A business energy broker can negotiate this commission with the business energy provider when attempting to get your energy contract.
This commission is usually calculated at a unit rate of energy per kilowatt hour. Then they add it to the kilowatt-hour unit cost of electricity or gas your business uses as set by your business energy supplier. Therefore, the energy broker’s commission can rise if you use more energy. Remember that this commission doesn’t appear on your business energy bill.
Besides the per kilowatt hour commission, there are also several other ways business energy brokers are paid. Some business energy brokers prefer taking savings payment shares. This is when the energy broker can be paid a certain percentage of the money your business saved on the energy bill by utilizing their services. But you need to ensure that you confirm how the potential business energy broker calculates these savings before you agree to this payment method.
Other business energy brokers use a straightforward form of payment, which is an upfront invoice. In such cases, you and your business energy broker can agree on a fixed monthly fee for utilizing their services.
It’s a good idea to have a written disclosure of how your business energy broker can earn income from your business energy contract with each form of payment. Ideally, a business energy broker needs to indicate their commission, fixed fees, and charges.
Unfortunately, some rogue business brokers may use the industry’s lack of proper regulation to take advantage of energy consumers by hiding the commissions and other charges in their customer’s energy contracts. Therefore, if a business energy broker doesn’t provide full written disclosure, or you feel forced into a business energy deal by a business energy broker without understanding its terms and conditions, there is a good chance that you can make a claim on the grounds that the energy broker misinformed you about the energy contract.
It’s good for a small business to use a business energy broker to secure their business energy. This is because small businesses tend to have small teams that can focus on handling utilities properly. Therefore, a business energy broker can try to find the best energy deal for your small business. This means the best energy rates that suit your small business. An energy broker can handle time-consuming activities that you need to do to find the right energy deal, such as comparing several energy providers and handling any renewals or switching processes. They can also remind you when your business energy contract approaches its expiry date.