Broker Confusion

sherpley

Hi. Not sure if I did the right thing, but signed for a brokerage firm and they do the research for electric and gas prices ( I run a business, thought I would try it). Not a bad outcome money wise, but they get paid by the energy supplier, and not by me... suspect this represents a conflict of interest.


Have been rung 9 times this week (twice a day) and 3 times last week by broker trying to persuade me to sign with existing supplier for another three years (this would take me to 2019) on both gas and electric. Now, current advise says this might be a good move, but not sure if I am being hard sold for brokers interests, not my own; he has told me twice that wholesale gas has gone up, last news reports suggest it has gone down... anyone been in a similar position?

Aquamania

sherpley wrote: »

Hi. Not sure if I did the right thing, but signed for a brokerage firm and they do the research for electric and gas prices ( I run a business, thought I would try it). Not a bad outcome money wise, but they get paid by the energy supplier, and not by me... suspect this represents a conflict of interest.


Have been rung 9 times this week (twice a day) and 3 times last week by broker trying to persuade me to sign with existing supplier for another three years (this would take me to 2019) on both gas and electric. Now, current advise says this might be a good move, but not sure if I am being hard sold for brokers interests, not my own; he has told me twice that wholesale gas has gone up, last news reports suggest it has gone down... anyone been in a similar position?

Can you find a cheaper deal? Presumably not, else you would go with that deal.

So don't worry what the broker earns - no one works for free.

Bluebirdman_of_Alcathays

sherpley wrote: »

Hi. Not sure if I did the right thing, but signed for a brokerage firm and they do the research for electric and gas prices ( I run a business, thought I would try it). Not a bad outcome money wise, but they get paid by the energy supplier, and not by me... suspect this represents a conflict of interest.


Have been rung 9 times this week (twice a day) and 3 times last week by broker trying to persuade me to sign with existing supplier for another three years (this would take me to 2019) on both gas and electric. Now, current advise says this might be a good move, but not sure if I am being hard sold for brokers interests, not my own; he has told me twice that wholesale gas has gone up, last news reports suggest it has gone down... anyone been in a similar position?

The broker lied. In the business market you pay them, in the residential market the energy company pays them.

Brokers sculpt an extra £X/MWh on top of the prices. A day in the life of a broker (once the sales team have drummed up the business):

1. Phone various energy firms (preference given to those that take them out for golf most often)
2. Ask for todays price - the price curves business suppliers work to changes at least daily, unlike the domestic market.
3. Ask supplier to include £10/MWh as broker commission.
4. Return "best" price to client.

You will be able to get a better price direct with the supplier, you just have to haggle hard. For some people, it just isn't worth their time ringing around 20-odd business energy providers and they're happy to outsource this. For others, it may well be worth going direct.

sherpley

I appreciate your comments; it gives me a perspective that I didn't have before. Will probably let them stew for a bit, when contract lapses, re-assess.


A