Small business energy brokers vs going to a supplier direct – what’s right for your business?

We know that running a small business comes with its own set of challenges, and managing your energy accounts is just one of them. This is where using a small business energy broker may appeal to you. They can find deals for you, saving you time and money. 

However, buying directly from a supplier allows you to build a relationship with them which can lead to a more customised service to help your small business grow. It can give you greater control over your energy needs and contracts as well as allowing you to see their additional benefits such as energy efficiency programmes.  

Broker vs TPI – What is what? 

The terms broker and TPI (Third Party Intermediary) are often used interchangeably, however there are some key differences.  

• An energy broker acts as a middleman between you and the energy supplier. Helping you find the best energy deal by comparing prices and negotiating contracts. 
• A TPI is a broader term, which includes energy brokers but also encompasses other organisations that assist with energy supply and management. This can include switching sites and energy consultants.  

We understand that using an energy broker isn’t for everyone, however if you’re considering using one, here’s a closer look at some of the services they offer, and what to consider when choosing the right one for your business: 

Services offered: 

• Market analysis: energy brokers can assess the energy market and help businesses understand the options available to them. This can include different types of energy contracts, energy suppliers, and pricing structures. 
• Energy procurement: brokers negotiate with energy suppliers on behalf of their clients to find the best energy deals. They can leverage their relationships with suppliers to secure competitive rates. 
• Whole of market energy quotes: brokers provide quotes from a wide range of suppliers, ensuring businesses can get access to good deals. 
• Management of the switching process: they handle the entire process of switching energy suppliers, from initial research to finalising the contract. 
• Contract renewal reminders: brokers are incentivised to keep you in a fixed-term contract that they've negotiated for you, so they’ll often be proactive at getting you into your next deal well before your current deal expires. 
• Energy management advice: experienced brokers can offer advice on energy management, helping businesses optimise their energy usage and reduce costs.

What to consider when choosing an energy broker: 

• Reputation and track record: consider a broker with a proven track record and positive customer testimonials. Check for industry awards and years of experience in the energy industry. 
• Transparency: ensure the broker clearly explains their fees and commissions, and the range of suppliers they work with. Transparency is key to building trust. 
• Independence: choose a broker with access to a wide range of suppliers, not tied to any single supplier. This ensures you get unbiased advice and access to the best deals. 
• Ongoing support: a good broker doesn’t just help you switch suppliers; they provide ongoing support, monitoring your energy usage and market trends to suggest adjustments. 
• Expertise in your industry: find a broker with experience in your specific industry, as they will have a better understanding of your unique energy needs and challenges. 

Ofgem pricing transparency  

From 01 October 2024, Ofgem introduced new rules to increase the transparency and fairness of broker pricing for non-domestic customers. This means that energy brokers are required to include and clearly display any broker fees on all energy contracts for non-domestic customers. They must also provide this information upon request. 

Conclusion: 

Using a small business energy broker can significantly reduce your energy costs and save you valuable time. By choosing the right broker, you can ensure that your business gets the best energy deals tailored to your needs. Take the time to research and select a broker who offers transparency, independence, and ongoing support. This way, you can focus on growing your business while leaving the energy management to the experts. 

Alternatively, if you decide you’d rather manage your business’ energy needs personally, be sure to do your research and shop around, and select a supplier and tariff that’s right for your needs. If you’d like to discuss options with EDF, please check out our switching site or give our sales team a call on 0333 188 6725*.  

Purchasing direct from an energy supplier can also come with its benefits, allowing for a direct relationship with your energy supplier which can lead to a more customised service and better communication, as well as improving your market knowledge which could help you make more informed decisions in the future. 

EDF offer reliable energy for your small business, rated excellent on Trustpilot. If you choose to join EDF, you’ll get: 

• Effortless online account management 
• Cheapest prices direct 
• Dedicated small business energy specialists