The truth is that it can be hard to find enough time, resources, and expertise to find the right energy deal for your SME. This is because it requires a good understanding of the complex pricing structures and energy market knowledge to secure the best energy contract. You can decide to analyze the energy market yourself, but it requires a lot of time and effort. This is because there are several factors you need to consider before you compare energy suppliers.
For instance, you need to figure out if you have enough time to do a proper job, determine if energy plays a huge role in your costs and many more. But if you are happy with your current energy supplier, have a competitive long-term fixed energy contract, and know how you can monitor and assess the wholesale energy market, then you can decide to manage your energy contract. If not, you should choose to work with Utility Bidder. This page explains why SMEs should consider using energy brokers.
Energy brokers can help you to get better energy prices
When energy suppliers compete for the same customers, you can save money. When any business sells a product, the offer price tends to be affected by competition. If there is no competition, then the price can get higher.
Simply put, energy brokers force competition. Most energy suppliers can offer lower energy prices to energy brokers because they understand that they are fighting for their business. As a result, this forces the energy price to go down.
An energy broker can also have many customers, and energy suppliers know this, so suppliers are willing to offer cheaper energy tariffs to get these customers. On the other hand, when a customer directly deals with an energy supplier, one energy contract usually requires renewal at least once each year. Compare this to energy brokers offering energy suppliers the chance to bid on several customers every month. This is why energy suppliers give energy brokers better energy prices.
Energy brokers have a good understanding of the energy market
You can think of many professional areas that your business currently outsources. And depending on the type and size of your business, you can employ outside accountants, attorneys, marketing agencies, or even IT consultants. You can decide to do this because you may save money by outsourcing it, or it’s hard to hire this professional full-time.
You need to treat energy procurement in the same way. In most cases, many in-house people responsible for energy procurement may not have the right experience or time to check the different energy offerings, read through, and understand the small prints in each energy contract. Worse still, they may not keep up with changing energy markets, find ways to reduce energy consumption, and do due diligence on energy suppliers.
An energy broker can offer strategic direction
An energy broker does more than just looking for the lowest energy tariffs. A reputable energy broker can take the time to know the complexity of your business operations, any future business energy requirements, and many more. They can create an energy procurement strategy designed to meet these business needs, including risk management associated with your business.
After doing this, they can then recommend the right energy suppliers as well as energy contracts that suit your business. This approach can ensure that the procurement energy contracts can offer cost savings over time and not just meet the business needs of getting the cheapest energy contract tariffs on your renewal date. A good energy broker can also use their energy buying experience and market knowledge to save you money, time, and resources.
They can achieve this by gathering information to help them approach the suppliers, search the energy market to find the most suitable electricity and gas contracts for your business, guide you to the main drivers in the wholesale energy market to opt for when purchasing energy, negotiate energy prices and contractual terms, and many more.
An energy broker deals with the complex task of sourcing energy
There are several energy suppliers on the market, and each one has its pros and cons. A couple of energy suppliers dominate the energy market, though smaller energy suppliers tend to be creative in their energy offerings. Therefore, it can be hard to know which energy supplier provides your business’s right requirements and expertise.
Energy suppliers also provide different energy products or contracts most offer flexible contracts, fixed contracts, variable contracts, green energy, and many more. Each energy supplier can offer slightly different terms and conditions for the energy contracts, and these can usually have clauses that may affect the final cost of your energy supply.
An energy broker deals with these complexities every day and can analyze the energy market so that they can offer you detailed feedback on the right energy options your business needs to buy.
The last complexity is timing. In most cases, this factor can significantly affect energy costs for businesses. As wholesale energy prices usually rise and fall, monitoring the energy market for dips is good because you can save tons of money. Some energy brokers can have the wholesale market software and market intelligence to help their customers to lock in when the energy prices fall.
An energy broker can focus on time-consuming supplier contract management
An energy broker can monitor your energy supplier bills and contract to ensure that they are charging you the right amount of money for the energy you utilize. And, if there are disputes between you and your energy supplier, an energy broker can assist handle the issue on your behalf.
Besides these, an energy broker can stay ahead of this fast-changing deregulated energy market. In most cases, they do this by keeping track of the latest technological advancements, regulatory changes, and new charging structures. As you can see, there are many things an energy broker can do for you. Therefore, it makes sense to work with them so that you can save money and time.