The British energy markets were opened to competition between 1996 and 1999. The Gas industry had been privatised in 1986 as a vertically integrated company with a monopoly in supply throughout Great Britain, The United Kingdom’s (UK) energy market is deregulated. This process of deregulation, or privatization, began in 1989 with the Electricity Act of 1989
Knowing the History of the Energy market is important to understand why this industry is so competitive. Suppliers want to make each customer feel they are on the best agreement whilst making as much money from them as financially possible. An underlying fact we cannot hide is, that the Energy Market is unregulated, whilst the monopoly of the market has ended, this only increased the competitiveness of the industry. An unregulated market has seen unethical practices become common; however, you will probably be surprised to hear that there are some benefits Energy Consultants can provide businesses. A point to note is that unethical practices aren’t only carried out by consultants, some suppliers have had their fair share.
Whilst customers now have the freedom of the whole market, making the right choice isn’t that easy. Every supplier boasts about ethical practices and fantastic service, as customers we all know this isn’t always the case.
This is where using an Energy consultant can certainly benefit your business, we all know that there is also a risk factor involved but I hope the following points will share some light on how an Energy consultant can support a business.
1 – KNOWLEDGE –
With every aspect of business and each transaction, we know that knowledge is a major factor when it comes to the price you pay. Let’s use a very common example – when buying a car – the more knowledge you have about cars, the better value for money you are likely to get.
Energy procurement is no different and if I am to be honest, then industry knowledge is the greatest tool for third party intermediaries (TPi’s/Consultants). Knowing the industry and what it can offer a business is key to getting the deal that suits a business’s needs. There is knowing the reasons behind price fluctuations, when to purchase or agree on Energy and what the future holds for businesses in relation to governmental regulations.
2 – SUPPLIER RELATIONSHIPS –
Suppliers at the time of renewal make customers feel valued in order to encourage them to continue using their services. However, making relationships with suppliers count is not always possible, as the dealings between a supplier and customer happen once, which generally is at the time of renewal. So, whilst the supplier representative on the phone is telling a business owner that they are getting the best deal, this is not always the case.
An Energy consultant on the other hand interacts with suppliers on a daily basis and has a developed relationship in place. This is important in making the market work in favour of the customer, whilst some customers are large energy users, they simply do not have the influence an Energy Consultant who manages hundreds and sometimes thousands of customers will.
The benefits this adds to a business is not just financial, but they can also be used to manage complaints, resolve billing challenges, and speed up general communication. An Energy consultant has individual supplier account managers who not only are a direct way into the supplier but also possess the ability to resolve matters immediately.
3 – ACCESS TO INDUSTRY –
Another benefit Energy consultants have is direct access to the whole industry. While some customers will try and do their own market research, they are most likely to turn towards the ‘Market Leaders’, as we know market leaders in every industry come with a premium.
Energy consultants can approach your current supplier directly and get the prices, they can also tender a business’s requirements to a wide range of Energy Suppliers. Having a large number of suppliers at hand means the price will be more competitive, as suppliers will be competing with one another for the business.
Knowing the market also gives a consultant the right understanding of what benefits a customer can get with each supplier. Whether a business is looking for Green Energy or better service.
The role of an Energy Consultant is to understand each supplier and what they offer, so the task of matching a client’s requirements to a supplier is much less strenuous and time-consuming. This process is done by a customer can take hours/days and sometimes weeks.
The above-mentioned points when used ethically can become invaluable assets to effective purchasing and management of Utilities. However, knowing the market also means having the power to manipulate it. When suppliers offer inflated renewals, this can be an opportunity some unethical consultants are looking for. Customers will not always be in a position to see this, as they compare quotes received to what the supplier has offered.
So, are not customers at a constant loss?
Well, this is where having an Energy Consultant you can trust is important, giving the advice you need and support when renewing your agreements. Using the above-mentioned points can give businesses access to very competitive prices and excellent supplier service.
Making the right decision for your business is important, this is OUR priority! We strive to ensure every one of our customers is receiving the most competitive price and service the market has to offer. Axiom Energy pride itself in having the best supplier relationships, who not only offer a wide range of services but also share our approach to the market.
That approach is one of transparency, honesty and where the customers business needs come first.
If you would like more information on how we can support your business contact us today for a complete and Free Energy Audit.
Call us on – 01164 784 330 – Email – info@axiom-energy.co.uk – www.axiom-energy.co.uk
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