In the current market climate, more and more businesses are using energy brokers or energy consultants as part of their energy purchasing strategy. The main reason for this is to reduce expenditure on utilities.
But what is the difference between a broker and a consultant?
Simply put, the differences come down to pricing structure and the service you receive.
Brokers work on a commission basis, whereby they receive a fee from the energy supplier for introducing your custom, or there is a commission built into the price per kWh that you are quoted. Not all brokers will disclose this commission and therefore, there are sometimes hidden fees. This means that you will not know exactly how much you have paid for using the broker’s services.
Consultants tend to work on a pre-determined fee basis, either flat rate or based on the savings made. Here at MDG, transparency is key to everything we do and our fees are performance based. If we don’t save you money, you owe us nothing! In this way, you can be safe in the knowledge that we are always working with your best interests at heart, and will save you money wherever possible.
The energy procurement process is also different: Energy brokers will likely not review the whole market. If they are working on commission from specific suppliers, or if they receive more commission from certain suppliers, be wary that you will most likely not be getting the best deal for your energy contracts.
On the other hand, energy consultants carry out a full review of the market and will advise on the best tariffs and contracts for your business needs. No business is exactly the same and therefore, tailor made procurement strategies are essential.
Consultants like MDG Energy will manage your energy portfolio and offer a full service; ongoing bill validation; market monitoring and risk strategy; dedicated account manager; dispute resolution. Here at MDG, we also provide our clients with advice on how to reduce their consumption and become more energy efficient. We are in the position to manage an energy efficiency review and offer full project management for those committed to reducing their consumption, saving valuable revenue in the process.