Is your energy broker honest?

Tuesday 28th November, 2017

Reducing energy costs through improved purchasing and accurate billing is a key part of an overall energy management strategy and is increasingly linked to energy efficiency through the deployment of effective metering and monitoring systems.

Getting the best deal on your energy purchasing is perhaps an even harder task than identifying cost effective efficiency opportunities!

Unless you are a very large energy purchaser, you will not be able to justify the in house expertise to chart a path through the bewildering array of suppliers and tariffs. This means you either take whatever is on offer or you turn to an energy consultant or broker to help you find the best deal – which requires as much care as choosing a supplier!

If you use or are considering using an intermediary to buy or source energy for you here are three key issues to consider:

Fee transparency 
There is no such thing as a free brokerage service. If you are offered a free service, or a service without a direct or transparent cost then the income the TPI receives is being added to your energy price.

Independent advice 
Not all TPIs operate a full market tender and negotiation process, preferring instead to work with a select group of suppliers, or even with only one or two.

Acting without authority 
To operate on behalf of a customer a TPI should have a letter of authority. Not all TPIs do so; often acting on the briefest of information given by the customer in good faith they will approach their preferred supplier(s) and obtain a supply offer.

Ofgem recognises the essential role that good TPIs play in the industry and agree that good TPIs are:

  • Fully independent.
  • Transparent in respect of fee income and market interaction.
  • Act only for clients when they have authority to
    do so.

We have been applying these principles for the past 30 years way before they became “topical” they have always been our benchmark!

For an “honest” review of your current energy situation please call us NOW on 01246 290490