This document discusses how energy broking works to reduce costs for consumers and suppliers. It explains that gas and electricity are commodities traded on markets and that suppliers purchase energy wholesale and sell it for a profit to consumers. An energy broker monitors these markets to secure energy contracts when prices are lowest, reducing supplier costs. As brokers bring in customers, suppliers face lower marketing and customer service expenses. The document claims that through broking, analyzing tariffs, and saving time, brokers can obtain better energy prices for consumers from suppliers while the broker's fees are paid by suppliers based on the energy contract.
2. are both traded on a wholesale market like
other commodities
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Gas and Electricity
buy the energy and sell it on for a profit.
Energy “Suppliers”
is a company looking after the network of
wires and pipes that supply energy around
the UK. Suppliers pay National Grid to
supply and maintain the network. This cost
is passed on to the consumer.
The “National Grid”
How energy purchasing works
3. How is energy priced?
(4.2p and 11.5p respectively). Transport
and Distribution is what National Grid
charge the supplier for and is something
we have no control over. Wholesale cost
is the cost of energy itself and admin,
along with things such as marketing
costs, risk, billing, customer service etc.
These are the main components of your
energy price.
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This graph represents gas
and electricity prices offered
directly by a supplier
without standing charges.
Profit
Wholesale
Energy Price
Transport & Distribution
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What effect does energy broking have?
We can change the amount of profit
suppliers make, reduce their admin costs
and get the energy as cheap as possible.
HOW DO WE DO THIS?
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We can’t change the price
that National Grid charge
the “suppliers” to maintain
the network as it’s fixed…
but…
Profit &
admin
Wholesale
Energy Price
Transport &
Distribution
5. 5
We reduce the marketing costs for
suppliers as we source customers.
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Reducing Costs
UK Energy Mangement Ltd– The Solution
We are the first point of call for the
consumer so we reduce their customer care
costs too.
Customer Care
FREE No Obligation Quote
We will provide you with a FREE Analysis of your current
energy usage and source competitive prices from the UKs
leading energy suppliers.
We are a 100% independent of any supplier and will search
through our comprehensive panel to find the right solution
for your business.
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We broker the energy (decide when to buy) so We reduce the suppliers’ brokerage costs, and this is
where we make our money… BUT this also has another benefit…
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Energy Broking
Decide when you buy your Energy
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day ahead
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7. Does your
business
receive the
best price
for its
energy use?
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Gas and electricity are
traded as futures and
options.
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Futures and Options
Monitoring the Energy markets
We monitor these prices and factors that
affect the supply and demand of energy
(such as oil prices, currency, weather
even wars and conflicts); and look for
trends
Trends
We analyse current prices and which
direction they are going, so we can
secure you a price at the right time.
Price Analysis
8. 8
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How do you know you’re getting the best deal?
Gather offers from suppliers for
12, 24 and 36 month contracts
You could do this Let us do this
Compare their various, complicated
tariffs for you, including “green” options
Look at their Terms and Conditions to
make sure you are protected and not
caught out by small print
Offer you the best 2 or 3 proposed
contracts so you have an informed choice.
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We get better prices from
suppliers as we reduce their costs.
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Cost Reduction
In summary…
We monitor the markets, to make sure you
get a contract at the best time possible.
Market Monitoring
We know the tariffs and can work out the
best one from each supplier for you.
Which is the Best Tariff for you
We save you time and resource looking
at suppliers’ offers.
Time Saving
10. 10
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So… How much does this cost?
so the energy price you are offered, savings and all, include our fees, which are paid by the supplier.
We make our money on the brokerage of the contract.
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What do you need to do?
Complete a letter of authority on
your headed paper. This lets us
gather the information we need to
gain quotations for you. It does
not let us put you into
a contract.
Supply us with a bill from your current
gas and/or electricity supplier. This
will have a lot of the information we
need. It also gives us your supplier’s
contact info.
THAT’S IT! – 10
minutes or less
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