Learn whether or not you should use a business energy broker. Use FreePriceCompare.com’s guide below to discover whether an energy broker is right for your business.
Office overheads can be one of the most expensive costs an employer has to assume, especially if you want to be based in a competitive location like London. But it’s not just renting office space that costs money. As a business owner you have to factor in energy bills. Energy use can be a cost that’s difficult to predict and keep consistent. The challenge becomes greater as your business grows and its needs evolve.
Specialised brokers exist that are dedicated to finding energy savings. But are business energy brokers good value for money? Should you use one? Or are the commission costs not worth it? In this article, we’ll explore whether or not you should use business energy brokers to drive down operating costs, or if you’re better off making the comparisons yourself.
A business energy broker is a third party that conducts searches and uses their contacts to negotiate the most favourable energy rates possible for companies. The broker makes money by charging a fee (either in commission or a lump sum) to your company. Business energy brokers claim that they have a unique pool of relationships and contacts that will ensure you get the best energy deal. Their exact value is the subject of debate and will depend on your business.
Micro businesses with less than ten staff members will typically end up paying more per kilowatt-hour (pKwh) of energy used than SMEs with more employees. The reason is that energy companies charge at a minimum usage level.
A business energy broker can help you to get consistently competitive rates on both gas and electric bills. Alternatively, you can invest your own time to understand business energy bills and switch to providers yourself.
Understanding business energy bills can be tricky. Every business needs power, usually a combination of electricity and gas. Unfortunately, prices can shift due to a range of factors, thanks largely to the laws of supply and demand.
For example, demand for energy is highest in the UK during the work day (Monday – Friday, 9am – 5pm) which increases prices. Furthermore, natural disasters or macro events like severe supply chain disruption can make energy more expensive to transport, with costs passed on to the consumer.
That being said, there are more switching services than ever which business owners can use to compare costs. Provided you don’t let your contract run down and set up internal reminders, you can make sure you switch providers to get the best deal.
Your energy bill can be broken down into three main factors:
Note: It’s generally a good idea to switch providers before your contract runs out, as you’re likely to be charged more for staying with the same energy provider over a long period of time.
Let’s look at some of the pros and cons of using business energy brokers to see if it’s the right course of action for you:
Business energy brokers can be an effective way for your business to reduce overheads but it does depend on your available time and resources. Before hiring a business energy broker, it’s important to compare the services in your local area.
Understanding business energy bills doesn’t have to be overly complicated. But if your business is time poor, it could be worthwhile reducing some of your potential savings by hiring a broker to sort out your commercial energy requirements.
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