Brokers and procurement
How to compare business energy quotations
How do we know whether two business energy quotes are genuinely comparable?
Two quotations can show different unit rates because they include different charges, consumption assumptions, contract dates, commission or risk. Rebuild them on the same sites, volumes, dates and cost components before deciding. Record what is fixed, what can change and what service or broker remuneration is included.
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Create one comparison basis
Use the same contract start and end dates, annual consumption, supply points, taxes and forecast assumptions. A quote covering fewer sites or excluding pass-through charges is not directly comparable with an inclusive portfolio offer.
Compare total expected cost
The unit rate matters, but it is only one input. Ask for an estimated annual and full-term cost using your agreed volumes, with every material assumption visible.
- Sites and MPANs or MPRNs included
- Standing charges and capacity-related charges
- Fixed, variable and pass-through components
- Broker fee or embedded commission
- Volume tolerance and change-of-law provisions
- Payment terms, security requirements and credit conditions
- Service, billing and data support after signature
Record why the decision was made
Keep the quotations, comparison, recommendation, approvals and signed contract together. This creates an audit trail for the board or finance team and a reliable baseline when the next renewal begins.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.
Related questions
- What is the difference between fixed, flexible and pass-through energy?
- How can we find out what our broker is being paid?
- What should we expect a broker to do for our business?
- What is the difference between a standing charge and a unit rate?
- What should we check before renewing or replacing a business energy contract?