With prices soaring, what will your next business energy contract look like?
It’s understandable you’re rightly concerned about the current market but be wary of some of advice you might be receiving from commission-based brokers.
Now that the energy market is at a record high and rising, be aware that brokers will be pushing for longer contracts as these will secure a greater guaranteed commission for them. You might want to consider buying short.
Consider buying short. Three reasons why:
1: Negotiating a fixed contract is fine in principle but if over a longer term, you could get locked into extortionate amounts of commission, with fees recurring for the life of your supply contract.
With 99% of the UK’s 2,500 brokers paid by commission, your budget could lose a substantial portion to their fees alone. And because the market is currently unregulated, consultants are free to collect as much commission as they like.
2: Energy procurement can be more dynamic, which requires an in-depth understanding of the market, daily analysis, and ongoing adjustments to deliver a lower price than the average market.
A dynamic approach delivers a lower commodity cost by maximising the benefit of market volatility and limiting the risk of buying when prices are artificially high.
3: Whilst a longer-term contract (say 2/3-years) might look cheaper than a 12-month one, what you pay will remain at the current record highs for both your second and third years. The question is whether you want to fix your prices for such a long time in the middle of the biggest energy crisis we’ve seen since the 1970s.
Buying both short and dynamically with us
At Noveus Energy, our approach to managing energy is dynamic, which means it is constantly reviewed and adjusted daily. The result is more significant opportunities to maximise market changes and control and reduce costs.
With us, you only pay once, with no recurring or hidden commission. We can even provide evidence from the appointed energy supplier that zero commission is included in your contract.
For more information or to chat through the current energy market and what your next contract could look like, get in touch via our website contact form.