Energy Mod2 Page1
DUS - Energy Training
How Does It Work
The way the energy industry works is by companies charging for a unit of energy and building in their costs and profits. Energy companies need to charge a large fee to cover all the costs of advertising, finding new customers, high office and admin costs and even keeping share holders happy.
As we are introducing customers to these suppliers without the need for heavy advertising and lower overheads we are able to lower fees and get the best possible price straight from the wholesale market.
As you can see by the graph, we only take a small "Uplift" in comparison to the suppliers and other brokers that result in a smaller charge the client.
This is how we are able to get better prices and by keeping our overheads low, we are able to save businesses lots of money.
Pricing A Contract
When we are pricing a contract we compare prices against multiple energy suppliers, comparing 1 year, 2 year and 3 year contracts. Depending on the market, we may also compare 4 and 5 tear contracts.
The price of energy is always increasing so a 3 year energy contract will normally be more expensive than a 1 year energy contract.
If the client is interested in the security of their energy prices, we would always recommend a 3 year deal as opposed to the lower cost on shorter contracts but there is a risk of higher renewal prices.
