DO YOU NEED AN ENERGY BROKER?

All businesses seek to maximize their profitability and should be eager to switch energy suppliers to receive the best rates. 

However, who has the time and resources to research supplier offers and compare agreements and rates? This task requires an in-depth knowledge of the energy market to understand the complex pricing structures of the many different suppliers who are all offering different contract terms.

However, where there’s a will, there’s a way. You could do it on your own, but it will take a lot of time and effort. If you still cannot decide whether to outsource your energy needs, here are some questions to consider:

• Do I have time to research suppliers in my area?
• Is energy usage a core part of my business or should I spend my time otherwise to increase profits?
• Can I gain enough of a knowledge base about the energy industry to get the best rate and the best total agreement?
• Can I do a better job than an expert in the field of reverse energy auctions?

Of course, if you have a long-term fixed contract and understand how the wholesale energy market operates, you may opt to handle your energy contract on your own, but if not—keep reading.

Here are five reasons you should use an energy broker:

1. Brokers can get better rates.

Brokers encourage competition. When energy suppliers are forced to compete for your business, you save money—without competition, the price goes up. Energy suppliers now compete for your business, saving your business money through the process of competition. The more competition, the lower the price.

Furthermore, since suppliers know that brokers are seeking a competitive advantage, they will offer lower prices. A single client going directly to the supplier is at a competitive disadvantage compared to a broker that encourages suppliers to out bid each other to gain the business of dozens of clients per month. Who will get the better rates? The answer is obvious—the broker’s clients.

2. Brokers possess extensive expertise in the energy market.

Typically, business will outsource the professional areas that require specific knowledge in order to reap the benefit of an expert and maximize savings. Such areas include accounting, IT consulting, legal counsel, sales and marketing and especially energy procurement. An energy broker has inside knowledge and experience in the different energy products such as energy contract small print, the direction of ever-changing energy markets, local suppliers in your area and the best rates available. 

3. Brokers can offer a strategic energy portfolio.

An energy broker will not only find you the best rate, but also conduct extensive research taking into consideration the complexity your business’ operation thereby maximizing long-term savings as well. The best brokers will give you an organized energy strategy portfolio that explains—in simple terms—a total energy strategy taking into consideration your current and future business requirements. A good energy portfolio also includes risk management ensuring that you get the best rate for the long-term, not just satisfying savings on the date that your contract is up. A professional energy strategy portfolio contains the broker’s market experience and energy purchasing expertise saving you valuable resources by:

·   Researching the supplier market gathering data

·   Investigating the most advantageous gas and electricity contracts

·   Using reverse auctions to choose when to purchase energy in the wholesale market

·   Negotiating and clarifying contract and pricing terms on your behalf

·   Recommending new suppliers and explaining contract terms and rate structures,

·   Recommending credit clearance and planning and managing multi-site contracts

4. Brokers specialize in the complex strategies involved in energy procurement.

Since energy deregulation, suppliers are now forced to compete for your business. Texas alone has over 100 suppliers and there are hundreds nationwide, all offering different rates at different contract terms. Contract terms vary as fixed or flexible, variable or block pricing, peak or off-peak, green energy or a mixture of the previous. Wholesale gas and electricity prices can vary on a daily basis. Inclusive, the different contract terms and conditions vary and often have clauses that effect the agreement as well as the end cost of the energy you are purchasing; and the prices themselves vary according to the future changes.

Navigating through the—at times creative—energy offerings can be tricky if you are a layman to the industry. Energy brokers are navigating through these complexities on a daily basis and can easily recognize the best agreements which reflect the most cost-effective agreement options and meet the commercial requirements to power your business for less.

The most important element of energy brokerage is timing, which is perhaps the most complex aspect of energy procurement and makes the biggest difference in business energy cost effectiveness. Wholesale energy prices rise and fall and it’s important to monitor the market as the ups and downs can result in cost differences of thousands of dollars. Energy brokers are familiar with market intelligence resources and wholesale market monitoring software helping business energy consumers lock in advantageous offerings at the right times. 

5. Brokers can negotiate and manage a complex supplier contract.

Brokers stay up to speed in the ever-changing market of de-regulated energy by staying up to date with regulatory changes and being proficient in the latest and newest advancements in technology. Inclusive, a broker can help resolve disputes on your behalf ensuring you are fairly charged for your energy usage according to the terms and conditions of your agreement. 

Here are three more benefits to partnering with a reputable energy broker:

1.   It's cost effective.

Energy usage is typically the biggest expense for most businesses, and as prices continue to rise, it becomes more important than ever to partner with an energy strategy brokerage firm to help you power your business for less. 

2. It’s efficient.

A professional energy broker has the experience and market expertise to give you full access to competitive prices to power your business for less while freeing up your time to meet your business’ daily operational needs.

3. It's secure.

Energy contracts and supplier offerings are complex and complicated ventures to undertake; a broker handles these tasks with ease, liberating you from costly mistakes and misunderstandings. 

Lastly, the best reason to partner with an energy broker:

It’s a total energy strategy!

Maximizing business profits is a top priority for all business owners and having an organized and user-friendly energy portfolio allows you to simplify a complex process while reaping the maximum gain for your business’ continued success.