Brokers and procurement
What does a business energy broker do?
What should we expect a broker to do for our business?
A business energy broker, also called a third-party intermediary or TPI, can obtain market information, approach suppliers, present quotations and support contract administration. The broker is not the energy supplier, network operator or regulator. Services and charging models vary, so the scope should be agreed in writing.
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The broker's basic role
The basic procurement role is to understand your requirements, obtain or negotiate supplier offers and help you compare them. Some brokers also provide bill checking, consumption reporting, renewal management, sustainability support or help with metering problems.
There is no single standard service. Two businesses both described as energy brokers may offer materially different supplier coverage, account management and technical capability.
What to establish before appointment
Ask for the scope, charging basis, supplier coverage, contract term and termination rights in writing. Confirm whether the broker will approach the whole market, a panel or selected suppliers.
- Exactly what work is included?
- How is the broker paid and what is the total cost over the contract?
- Which suppliers will and will not be approached?
- What authority does the Letter of Authority grant?
- Who supports you after the contract is signed?
What remains your decision
The organisation remains responsible for checking that the recommended contract suits its requirements. A broker can inform and facilitate the decision, but the lowest headline unit rate is not automatically the lowest overall cost or the best operational fit.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.