Our industry continues to be blighted by false claims and confusing statements. In recent weeks we’ve been amused and bemused at the claims some energy brokers have made about how much money can be saved by switching energy contracts.
“Save 20% instantly!”
“We can save you £2,500 a year!”
These claims are always headline-grabbing and attractive to any business with its eye on operating costs. However, not surprisingly, all is not what it seems. Rarely can these price promises be fulfilled.
With more than 15 years’ experience in buying energy for business, we know it isn’t possible to determine whether a business is paying too much for their energy until there’s been some detailed analysis. The analysis isn’t onerous, but it does involve three critical elements:
1. looking at current usage based on recent invoices;
2. reviewing contract terms;
3. monitoring the energy markets in order to secure a new contract during favourable conditions.
Only when we’ve got this in-depth understanding of a business and its energy requirement is it possible to truly understand whether we can make a saving.
Of course, trying to secure a cheaper energy contract is only one half of the story. Few businesses are large enough to wield much bargaining power with the major energy suppliers, so the price of energy is always going to be a cost over which you have little control.
That’s why we always advocate a positive energy purchasing programme is run alongside an energy efficiency programme. After all, finding ways to reduce energy consumption will always be a better investment in the long-term.
So next time you’re tempted into a conversation with an energy broker based on an attractive money-saving offer, remember: there really are no short-cuts. A good solution requires a consultative approach, not a quick-fix or an ambitious promise.
