Looking ahead to the proposed regulation of the Energy advisory / TPI sector by OFGEM, here is an example of why it needs to happen soon to protect UK businesses from being severely ripped off by certain players in the market.
Small gas consumer, 1GWh of consumption per annum. The broker claimed ‘we get our service fee from the supplier so you don’t need to worry about that’ to the consumer. I asked the question, how much are they being paid?, ‘We don’t know’ was the reply.
The following Monday updated pricing was requested from the broker and independently we got a comparison offer from another gas supplier.
The broker’s offer, all in cost ex Vat – £90k per annum (yes this was a few years ago!!)
The commission free offer from the gas supplier – £65k per annum
How long were they being told to lock in… 3 years.
This kind of predatory behaviour needs to STOP. If you are an energy consumer using brokers to do your procurement, PLEASE!! take the time to review your arrangements before you sign. Assess the level of fee being built in and compare it with the value being delivered.
If you need help with that, drop me a line, and I will happily give you a frame of reference to consider before you proceed.
ENERGY BUYERS BEWARE!