So, what is a Business or Commercial Energy Broker?

A business energy broker serves as a crucial intermediary connecting businesses with energy suppliers to secure the most advantageous gas and electricity contracts. Their role extends beyond mere matchmaking; they actively assist both microbusinesses and larger companies in comparing deals, negotiating contracts with suppliers, and securing the most favorable terms for their energy agreements.

At TCD Energy, our exclusive focus lies within the business sector. We maintain partnerships with a select panel of 18 leading UK business energy suppliers, ensuring that businesses can access the most competitive terms and minimize their energy costs.

However, the responsibilities of a business energy broker go beyond the initial contract arrangement. They remain dedicated to keeping clients informed throughout the process, from the agreement's negotiation to its commencement. Moreover, they proactively address contract expirations, guiding clients through the process of switching suppliers to ensure a seamless transition.

In addition to these core services, energy brokers also offer valuable advice to customers. They provide insights on business energy meters, reading metrics, and market conditions, empowering businesses to make informed decisions that align with their long-term energy needs and financial goals.

How do Energy Brokers Get Paid?

An energy broker operates on a commission-based model. This implies that, for any energy contract established between a business and a supplier, the broker receives a commission. This commission is reconciled with the supplier and integrated into the overall contract price. However, it's essential to remain vigilant, as some brokers may still impose concealed fees. Always peruse your terms and conditions or directly inquire with your broker to gain clarity on the matter.

At TCD Energy, we uphold a commitment to complete transparency. We never burden our customers with additional or concealed fees. Our commission, determined by your average energy consumption over the past 12 months, is solely paid by the supplier. It is incorporated into the rates we secure for you. You won't be required to make any separate payments to us for our services. We take pride in ensuring that all commission details are prominently stated in your contract terms and conditions, which are provided before you make any decisions.

It is imperative that all energy brokers adhere to a standard of transparency in regard to the commissions they earn and the fees they charge. In some cases, these commissions may be undisclosed and not clearly communicated to the business, which may result in claims of hidden commissions.

Ofgem, the regulatory authority for the UK's gas and electricity markets, mandates that energy brokers disclose all commissions and fees. Additionally, Ofgem has implemented a comprehensive support package to enhance the transparency of broker commissions for customers. They have also established regulations requiring all compliant energy brokers to become members of Ofgem's ADR (Alternative Dispute Resolution) scheme. This ensures that the Energy Broker, which is the technical term for an energy broker, qualifies as a Third Party Intermediary.

Things to consider when choosing an energy broker

When the moment comes to seek out a new energy supplier, the importance of choosing a reputable broker cannot be overstated. Before making that call, it's wise to conduct due diligence and consider the following factors:

1. Partnered Energy Suppliers: Each broker has affiliations with a unique set of commercial energy suppliers, typically listed on their website. Take the time to examine this list to ensure it aligns with your preferences and requirements. This step helps you ascertain whether there are any suppliers you wish to avoid. At TCD Energy, we collaborate with a diverse range of suppliers, including industry leaders such as British Gas (BG Lite and British Gas Plus), EDF Energy, EON, and ScottishPower. We also work with carefully selected smaller independent suppliers to ensure we are able to provide a comprehensive and competitive offer. We leave no stone unturned in finding our clients the most cost effective contract with the most reliable and customer service oriented suppliers.

2. Track Record and Transparency: Trustworthy brokers are characterized by their transparency. Dubious brokers often fail to provide a clear account of the commissions they earn or any other fees upfront, potentially resulting in hidden charges. You can typically find comprehensive information about these aspects within their terms and conditions. Our commitment to transparency is evident in our detailed terms and conditions, which we encourage you to review should you engage us to support your business energy journey.

3. Depth of Knowledge: A reliable broker is distinguished by their in-depth knowledge of the commercial energy market. To assess their expertise, explore their website for informative resources such as guides and blogs. Consider whether they consistently update their site with the latest market developments. A broker that is well-versed in the field keeps customers informed about market updates, reinforcing their status as trusted advisors.

4. Renewal Support: All energy contracts have a lifespan, and dependable brokers recognize this. They proactively engage with existing customers well in advance of contract expiration to secure a new deal. Before committing, check if the broker outlines their approach to contract renewals. It's essential to ask in advance how your chosen Energy Broker will arrange renewals. Most Energy Brokers will request that you sign a Letter of Authority, which they are mandated to provide to any chosen supplier should you proceed to arrange a contract with them. It's important to carefully read the terms and conditions of any Letter of Authority you are request to sign-off. Some Letters of Authority include clauses that authorise the Energy Broker to arrange and sign any renewal contracts on your behalf. While this may seem like a time-saving service, some unprofessional brokers may tie you into contracts that are not ideal for your circumstances, for example, you could be signed up to a contract term that is much too long for your circumstances, or a renewal with a supplier who is not to your liking. TCD Energy never arrange renewals without the explicit signed authorisation of our clients. Any contract renewals TCD Energy arranges must be reviewed and signed directly by the client. This ensures full control of the business in any decision making process.

5. Ongoing Support: Depending when you sign a business energy supply contract, the period between signing a business energy contract and its activation can span several months. During this time, a reputable broker should keep customers updated, particularly if they are transitioning to a new supplier. Check if the broker maintains a responsive customer service team, ensuring that you have a reliable point of contact if the need arises. At TCD Energy, we employ a proactive approach, sending out timely emails to keep you informed about your contract's progress or renewal. Additionally, our dedicated customer service team is readily available to address your queries. You can contact us via telephone using our dedicated customer support line (0333 335 5200) or via whatsapp on the same number. Our email is monitored 24/7 and our support team can be contacted at info@tcdenergy.com.

6. Ensuring Broker Legitimacy: When choosing a business energy broker, it's vital to ensure their legitimacy. Here's how you can do it:

• Third Parties Intermediary (TPI) Membership: Confirm that your energy broker is a member of the Third Parties Intermediary body, showing their commitment to ethical and transparent business practices.
  
• Credential Verification: Request and verify references and credentials. Trustworthy brokers will be transparent about their track record.
  

Useful Resources:

• Ofgem: Ofgem is the regulator for the electricity and gas markets in Great Britain. Find valuable information on energy regulations and consumer rights here.
  
• The Energy Ombudsman: The Energy Ombudsman offers a dispute resolution service for the energy sector, helping resolve issues with energy suppliers and brokers.
  

Reasons to use an Energy Broker for Your Business

In the realm of business management, cost control is invariably a primary concern. Ensuring that your expenditures remain as low as possible is a fundamental goal. Selecting the most advantageous energy contract has the potential to significantly bolster your financial well-being. However, the prospect of delving into extensive research and haggling over contract rates might seem daunting, especially when your schedule is already brimming with the myriad demands of running a business.

This is precisely where the merits of engaging an energy broker become evident. Entrusting this task to a professional can yield a multitude of advantages for your business. Below, we've outlined some of the pivotal benefits to underscore the value of this strategic decision.

Avoid Exorbitant Out-of-Contract Rates

It's of utmost importance to steer clear of out-of-contract rates, which are typically 30% - 50% more expensive than fixed-rates. Ensuring that your contract doesn't lapse without negotiation for a new term is essential. Once your existing contract concludes, very high 'Out of Contract' rates kick in until a new contract term is established. Managing multiple contracts with differing end dates can be challenging and might lead to inadvertent lapses. A good Energy Broker will keep you informed about impending renewals, present all requisite information for your decision-making process, and skilfully arrange the most favourable new terms on your behalf.

Secure Competitive Rates

One of the primary motivations for our clients to engage with us is the assurance that they are not overpaying for their energy. The energy market's notorious price fluctuations necessitate vigilance. We closely monitor the wholesale gas and electricity markets, offering timely advice on the optimal juncture for securing new rates. Over the years, we've diligently cultivated strong relationships with a diverse array of UK energy suppliers. These connections empower us to negotiate the most advantageous tariff options on behalf of our clients.

Reclaim Your Time

Operating a business demands a substantial amount of time and dedication. The myriad daily tasks often take precedence over the meticulous comparison of energy prices. Entrusting an experienced energy broker to handle contract negotiations not only bolsters your financial standing but also affords you the freedom to concentrate on your core business activities. Researching and collecting quotes from various energy suppliers can be a laborious task and most of all extremely time consuming. High quality Energy Brokers can literally save you hours or even days of time you would you be better off spending building your business and seeking new opportunities.

Energy Expertise and Insight

While you might possess some knowledge of the business energy market, it can still be a perplexing terrain. Our team of experts boasts an in-depth understanding of the energy sector. Regular training sessions keep them abreast of the latest developments. This enables them to provide insights into critical areas such as the wholesale market, meter upgrades, and legislative changes. Even if you're not presently considering contract renewals, we offer an array of services designed to potentially save you money, time, and energy.

Comprehensive Services

Energy bills are typically accepted as accurate, and any errors are anticipated to be rectified in the subsequent bill. However, this assumption doesn't always hold true. A good Energy Broker should offer a Bill Validation service, giving assurance that your bills are accurate,  and helping to rectify any discrepancies and therefor reducing your administrative costs and saving you time.

We possess a unique capacity to function as a miniature energy department for our clients. Beyond energy procurement, our in-house Client Services team is devoted to addressing queries and resolving issues. This means we can manage everything from billing disputes to Change of Tenancy (COT) on our clients' behalf. We alleviate the intricate and time-consuming process of cost-effective energy procurement, ensuring the best tariffs and contract structures for our clients. If you're interested in learning how we can assist you, don't hesitate to reach out to us today.