SMEs: what is the purpose of a professional energy broker?

The relatively recent profession of energy broker

Brokerage activity exists today in many sectors of activity, for example in the insurance sector. Nevertheless, energy brokerage appeared late in the French economic landscape.

This is explained in particular by the relatively recent opening of the sector to competition. Indeed, the core business of energy brokerage is to put several energy suppliers in competition, the aim being to obtain the offer most in line with the customer's needs.

However, this competition only emerged in the 2000s in France. Gradually, the market opened up and gave birth to numerous offers and services. Today, there are slightly less than 40 electricity and natural gas suppliers officially registered in France.

In this article, SirEnergies explains to you what is the advantage for companies and communities of going through a energy broker.

Reducing energy costs

First, let's see how using an energy broker can help every business to: reduce your energy bills. Indeed, the role of the energy broker is first and foremost to help businesses understand their needs.

Then, by analyzing the customer's data, the energy broker can indicate the right offer. Indeed, there are several energy suppliers on the market and their offers are sometimes complex. The broker can then set up an energy purchase strategy on behalf of his client.

Some examples of the main suppliers and partners of electricity and gas for businesses in France in 2021.

Advice and support

The energy brokerage company is of interest to businesses in terms of advice and support. Indeed, beyond the price of energy, the broker supports its clients in fiscal and regulatory optimization.

The field of energy supply includes several mechanisms and sources of cost savings. Thus, the broker can exploit them, always in order to reduce the impact of energy on business expenses.

The energy market is becoming more complex every year; energy management requires the expertise and support of a professional.

The long-term partner

Finally, energy brokers represent a long-term interest for businesses. Indeed, the role of the broker is to be, beyond simple advice, to be a real partner in energy management. Today, technical progress allows us to quickly set up self-consumption projects or electric mobility. The energy broker can then support the client in the implementation of these projects and the identification of suitable partners.

The energy broker in the interest of reducing energy costs

The implementation of a purchasing strategy

First of all, it should be remembered that there are various strategies for managing energy prices. Each company has energy contract needs that vary according to its activity, needs and operation.

Energy prices fluctuate every day on the financial markets. Whether in spot markets or in the long term, volatility is significant. The moment of purchase is therefore essential in order to take advantage of attractive market prices..

The broker is there to support the client and keep him informed of interesting market opportunities. The aim is to obtain the most attractive price for the customer.

France day-ahead price — Source: EPEX SPOT — CRE analysis

Choosing the type of offer

The company will choose its offer taking into account its own criteria. If the need is to know the energy budget in advance, it is possible, for example, to choose a fixed price offer. On the contrary, if the strategy consists in taking advantage of market opportunities, then you can opt for an offer at a variable price. These are simple examples: situations can be more complex and often require professional support.

Do not hesitate to consult our article” Fixed price and indexed price of energy offers: which one to choose? ” to go further.

The organization of the competitive tendering of energy suppliers

The broker will first retrieve all the necessary information: consumption, type of site, energy budget. Then, he will choose the type of offer in line with the energy purchase strategy in place. Generally, the broker has privileged relationships with numerous energy suppliers. He can thus request offers and select the most interesting one according to the customer's criteria.

In summary, the service of an energy broker allows you to:

• Determine the purchasing strategy and the detection of opportunities;
• Choosing the right type of offer;
• Organize the competitive process.

The energy broker in an advisory and support role

Regulatory monitoring

The role of the broker does not end with the establishment of energy supply contracts. Indeed, regulations in the energy sector require monitoring and Regular stand-by.

The energy broker represents a regulatory interest for businesses. He is responsible for informing his customers about the new mechanisms and their uses. In this way, significant savings can be achieved. The evolution of the system of CEE (Energy Saving Certificates) or The tertiary decree are examples of cost reduction opportunities.

Support on energy taxation

Taxes represent on average, for businesses, more than 30% of their energy bills. For this reason, support is necessary. On the one hand, in order to know the different levers for adapting these taxes according to the activity of the company. And on the other hand, to anticipate future fiscal developments.

It is possible to benefit from partial exemptions from certain taxes under certain conditions.

Monitoring and optimizing delivery rates

Invoice tracking is a source of significant savings, which is often ignored. Indeed, the optimization of delivery rates makes it possible to adjust contracts according to customer behavior. In this way, the customer only pays what it costs the network.

For electricity contracts, we will optimize the subscribed powers. Whereas, for gas supply contracts, it will be subscribed capacities.

Invoices sometimes contain errors; follow-up is therefore essential to ensure accurate billing. All of these adjustments allow businesses to reduce their energy bills.

The energy broker as a long-term partner

It is undeniable that an energy broker can help a company make significant savings. However, more and more companies are choosing to carry out energy saving projects. Whether it is, for example, an energy efficiency project or the installation of solar panels, professional support is preferable. This is when the energy broker can allow you to successfully carry out a self-consumption project or the installation of electric charging stations.

Technological progress and the fall in investment costs in this type of project strongly encourage companies to take an interest in them. New consumption patterns and the ongoing energy transition offer opportunities for change to be seized.

As such, erasure services are growing in France. Manufacturers are encouraged to reduce their electricity consumption in exchange for remuneration. This mechanism is managed by RTE, in agreement with the authorities.

Here are some examples of energy projects with high added value:

• The installation of photovoltaic panels to produce electricity;
• Installation of low-consumption LEDs for building lighting;
• Charging stations for electric vehicles.

How do energy brokers get paid?

Overall, the energy broker represents an interest for companies in a process of cost reduction And of Time saver, but also with regard to the implementation of projects. Generally, the price of this service is gratuitous for the majority of energy contract services. The broker's remuneration is subject to negotiation with the suppliers.

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What are the different suppliers of electricity and natural gas?

Through a series of weekly articles, we detail every electricity and gas supplier natural in order to find out more about their stories, their activities in France, their energy supply offers (natural gas and electricity) as well as how to subscribe and get in touch with them.

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Do not hesitate to consult our article on” 5 preconceived ideas about changing energy suppliers ”.