There are two main options companies have when purchasing energy, go directly to the provider or work with an energy broker. What are the differences between the two and what works best for your business? A provider is the energy company - the entity selling and delivering the energy you use. An energy broker is a person who works with both energy providers and consumers to negotiate deals and supply data. Do you need an energy broker to help your company understand and put energy plans and rates in place? Most likely the answer to that question is yes. Here is a closer look at the differences between what an energy provider does and what an energy consultant does.
The Difference between a Provider and an Energy Broker
Most energy providers are solely interested in selling the power they create, and why wouldn’t they be? Energy has a very short lifespan and it is either used or it dissipates. For example, the energy from coal only captures about 30 percent of the energy it has stored and then part of that is lost as the power is transferred from the supplier to the consumer, which leads to sunken costs on the consumer’s end since you are still paying for lost energy. Incite Energy is an energy broker company who takes our relationships with business consumers one step further, making us true energy consultants. Our goal is to help them understand how their usage impacts their energy costs and help them negotiate energy deals that are profitable for the provider and fair to the consumer.
Why You Should Consider Working with an Energy Broker Rather than Working Directly with a Provider
1. Brokers know the best time to buy energy.
The cost of energy is never constant. If you buy energy at the wrong time, then it costs your company more money. Incite Energy has the tools and expertise to monitor the market and determine when the best times to buy energy are. As an energy consultant, they look at how your company can change how it operates so your usage is optimized for energy efficiency. They help you do more with the energy you buy. The savings are usually much greater than the minimal fees a broker charges.
2. They can get you a better price than if you went straight to the energy provider.
The hidden fees and recapture schemes put into contracts by energy providers is a pitfall Incite Energy can help you avoid by having years of experience with energy providers. What happens if you go over your allotted usage? The price skyrockets- in some cases, the cost rises so sharply that your entire annual cost of energy is affected. What happens if you fall off contract? Incite Energy proactively monitors and manages your account(s) to ensure you are always on the best product and price available in your area.
3. Brokers, and consultants, have relationships with the energy providers and they know what those companies are able to produce. They also understand how other forces, like political or environmental issues, can affect the price of energy. That "insider" information is helpful to businesses as it helps them find the best prices, even during peak energy usages.
4. They know the trends of energy prices and constantly watch prices to save you money.
At Incite, our consultants work with their clients to save them money by spotting trends in their client’s energy usage and through insights gained from analyzing market data. They work to ensure that your company gets the fairest price in the market by constantly going back to the data to find cost-saving opportunities.
Learn more about how working with an energy consultant at Incite Energy can positively impact the way your company does business and how much it pays for energy.