Control Energy Costs vs. An Energy Broker

Group Purchasing Arrangements or Basket Deals as they are commonly known are put together to buy bulk energy with the objective of individual members securing a lower contract price than they would on their own. They can work well if all members of the Basket have similar requirements and a good credit rating, but the reality is that this is generally not the case. The result is that larger users or those with an excellent credit rating typically subsidise others.

Negotiations are pretty inflexible too with the date for acceptance of a new supply contract set well in advance, irrespective of changing market conditions. Basket Deals are usually set up by brokers who negotiate the group deal on a commission basis. Their commission is factored into the price you pay.

The fundamental questions you need to ask yourselves are:

Do you want to retain control of the energy buying process, or are you prepared to hand over decision making to a third party?
Do you want to be just one small part of a "super customer", or do you want the best possible deal tailored specifically for your organisation?

This table illustrates the difference in approach between CEC and a typical Basket Deal arrangement:

	CEC	Basket Deal
Tailored negotiations specific to your business	Yes	No
Blanket negotiations for all members	No	Yes
Keep control of decision making	Yes	No
Ensure timing reflects market conditions	Yes	No
Control who you are contracting with	Yes	No
Know what price you will pay before committing	Yes	No
Control length and type of contract	Yes	No
Receive commission from suppliers	No	Yes
Have preferred suppliers (highest commission?)	No	Yes
Handle administration free of charge	Yes	No
Conduct audits to identify and recover overcharges	Yes	No
Monitor future bills and secure corrections	Yes	No

The CEC approach is one of complete flexibility, allowing you to exploit the opportunities that a volatile energy market can create. We will appoint a senior analyst to look after your account, and they will negotiate the best possible deal in the prevailing market conditions. They will discuss and agree a strategy with you every step of the way, share market intelligence, and present recommendations that help you make a considered decision about your future supplies.

With CEC, you retain complete control of the process. You are free to negotiate with any potential sup-plier yourself. We only get paid if we can better the deal you would otherwise accept.

Get In Touch