How to identify the correct ‘Energy Partner’ for Your Business

I have now worked in the industry for 38 years and in the beginning, businesses would have had no choice regarding who they chose regarding their partner and in fact they did not need a partner. However, when the energy market opened in 1990 there became considerable choice of supplier. In 1990s this is where the ‘Energy Broker’ ‘The procurement specialist’ or the ‘Energy Adviser’ was created. The market then became very complicated and businesses had to make decisions of their own.

This market has become very competitive since then as there are considerable profits to be made and normally at the expense of the business. The marketplace has become very volatile with call centres, brokers calling databases and businesses being bombarded in my words of the ‘Rogue Brokers’. But over the last two years we have seen this market starting to be tightened up and though there is no compliance around these services, there appears to be more integrity being applied to this industry with only isolated cases coming to the surface.

My article discusses how businesses can find the right ‘Energy Expert’ in the field of Procurement and Brokering.

If you identify the right energy broker this is a great way to help your business save money in a complex energy market. True energy brokers have unique market insights, they can help you objectively compare suppliers to find the best plan for your business. They also build on their existing relationships with the suppliers, which can compensate for difficult negotiations in todays market.

However, finding the right broker is not an easy task and choosing the wrong one could end up costing you more money and you could find yourself stuck in a poor contract, that does not suit you.

There are so many brokers to pick from, so how do you know if you are making the right choice?

I have put together some ideas to help you identify and narrow down four areas which I believe will assist you and help evaluate your options.

These are the four points when selecting the correct ‘Energy Partner’:

1. Do they have a proven track record of success?

• You need to find an ‘Energy Partner’ who has a proven track record of success and is well-established in the energy industry.
• Can they provide references and client success stories?
• Can they tell you what kind of insights they have into the energy markets and how they can find unique products?

You are working with an Energy Partner and you don’t have time to watch the markets yourself. So, you need to make sure this partner you choose has the accreditation to support you.

2. How many suppliers do they have access to?

• When you work with a partner, they will get prices from multiple suppliers and come to you with the best offers. But this is only useful if your broker has access to a large network of suppliers.
• A partner who only has access to a small number of suppliers will be limited in their ability to find you the best contract.

You need to find someone who has access to the best energy suppliers, so your contract is the best price across the market.

3. Do they provide good customer service?

• Part of the advantage of working with an Energy Partner is that you get to develop an ongoing relationship with that person. They should have a genuine interest in your business goals and should be actively looking to get you the best deal.

You should never have to chase down your Partner to ask them questions or figure out what is going on. They should be actively communicating with you and should be easy to get hold of. In addition, be sending you market reports weekly.

4. Can they clearly explain their fees and conditions?

Transparency is important; when you look at your contract, you should know what charges from the supplier are and what are the Energy Partners Fees. Your broker needs to provide a clear breakdown of their fees.

The key is to choose your Energy Partner with care, all reputable business energy brokers should be signed up to the Third-Party Intermediary (TPI) Code of Practice which at present is not an official process. Or they may have their own broadcasted ‘Code of Practice’

5. After Sales Process

Your selected partner must manage the ‘After sales’ process.  Not all transfers to a new supply go smoothly. Your new supplier maybe rejected. The application can be incomplete or there may be inaccurate records or even credit reasons.

Your current supplier can object to your transfer for similar reasons e.g. debt on your account or your business still being in contract. If this happens your partner should contact, you straight away and work with you to actively resolve the issue. If there is no offered help, there could be failure to move your contract and you could be left on an expensive out of contract rate.

Therefore, my article is based on selecting the right partner.

Summary:

• Ensure they are reputable and check references.
• Try to meet the broker. Those who only work online are less likely to offer good client support.
• Use a broker that is independent and not tied to specific suppliers. Always ask what their relationships are.
• Agree exactly what they will do for you, when and how and what documentation you will receive on supplier offers.
• Check if they adhere to and have been audited through one of the voluntary TPI codes of conduct.
• Never sign an LOA that allows a broker to sign contracts on your behalf without explicit buying instructions from you.
• Do they provide additional services such as advice on energy efficiency, regular market pricing updates etc.