Choosing an energy supplier
With a wide range of choices and changing energy policy regulations, choosing an energy supplier can be a challenge for businesses. For those looking for a comprehensive solution to save cost and reduce usage, an energy broker may be a good choice.
The need for energy brokers stems from the deregulating movement in the early 90′s which led to the UK Electricity Supply Industry in England and Wales being privatised. The goal was to increase the affordability and dependability of the service by opening up the market to competition. Similar measures followed, leading to a fully deregulated market by 1998 and the commoditisation of electricity.
Now there are over 20 different gas and electricity suppliers in Britain offering a range of tariffs. The most predominate leaders of the market, known as the ‘Big 6′, are British Gas, EDF Energy, E.ON, npower, ScottishPower, and Scottish & Southern Energy.
These suppliers have a great deal of flexibility with their rates and the ability to raise rates more quickly than they reduced them when costs fall. This has resulted in a complex landscape for the consumer. The EU Energy Policy Blog writes of the complexity, saying that the commodities “very low price-responsiveness of the demand-side gives suppliers natural market power.”
With the bulk of the market power being held by these suppliers, having an energy broker can deliver great benefits. An energy broker helps educate and assist consumers in procuring a low cost electric supplier. With an effective procurement strategy put in place by an energy broker, an organisation can secure the right energy contracts at the best prices. Acting as the go-between, the broker helps the consumer work with suppliers, guiding them through the range of complex tariffs and compliance policies.
What’s to gain by using an energy broker?
- Expertise – specialist knowledge on a range of needs from green business to capped/fixed price tariffs
- Risk Management – buy or renew at the right time to mitigate the risks of future price hikes and improve forecasting
- Buying Power – ability to obtain the best packages and rates
- Objectiveness – impartial advice on how to reduce and manage your energy costs
- Strategic Planning – an energy use strategy can reduce business costs and improve consumption patterns
At Nationwide Utilities we provide a comprehensive range of energy procurement services to help you obtain the best energy contracts. We can secure cheaper prices for your gas and electricity straightaway as a stand-alone service or combined with strategic services to improve energy efficiencies, cut costs, and reduce risks.
To receive a bespoke business energy analysis enquire here or call us on 0800 862 0861.