Advice for businesses

What does their brokering service really cost you?

Contrary to what most energy brokers may say, their service is not free and the commission is included in the unit rate you will pay. It is the broker setting the price and this means that you will be paying the broker indirectly through the supplier for every unit of energy you use.

If a broker is not upfront about this and does not tell you what it will cost  then you should carefully consider what else they aren't telling you (and why)?

You should also ask them to confirm how they are paid in writing (and keep it for evidence).

Don’t be pressured into agreeing a deal in a hurry.

Whilst it is true that prices can fluctuate daily depending on certain factors, in the main the prices will probably remain the same for days to come. Don't let an energy broker pressure you into a deal you're not sure about.

Stick to within 6 months of your contract ending before you renew.

A lot of suppliers won't offer prices any earlier than 6 months before your contract ends.

Any broker saying they can compare the market early can only compare from a limited number of suppliers.

The further away from the start date it is, the more likely the prices will have a premium included by the supplier for the contract starting so far ahead.



Long term contracts cost more

Brokers earn more if they convince you to fix in for longer, and so they will often tell you that a long term contract is cheapest or manipulate the prices to make it look like long term contracts are cheaper than short term contracts, this is a misrepresentation.

Suppliers can’t see into the future, and so the only way they can protect themselves in case prices go up is to include a premium in the unit rate meaning the price is often slightly higher the longer you build a contract for (even excluding broker commissions).

That said, if you think that something may happen in the future that will affect prices then fix for as you feel it will protect you for, but don’t let the broker dictate how long that is for, do your own research or call us for advice.

Get all offers in writing.

Ask they to send you a copy of all comparissons they have done for you and keep it as evidence.

Letter's of Authority (LOA's). 

Understand that if you sign a letter of authority authorising the broker to sign contracts on your behalf that there is a chance they may just do that to your detriment, and you will be held liable for the contract as you have given them written permission.



And after reading all of this if you’re still not sure if you should take a price offered by an energy broker.......

Get in touch with us, we will give you our honest opinion and try to help you avoid any mis-selling before it happens. 

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contact

Unit 116i, North East Business And Innovations Centre
Sunderland, SR5 2TJ
0800 6890459

Please fill in the following form and one of our team will contact you to establish if you have been mis-sold to and what assistance we can offer