Account Management Archives - Clifford Talbot Partnership

How to keep on top of your company’s energy consumption during Covid-19

Account Management, News, Utility Management

Now more than ever we all need to keep a calm head and ride out this wave together. Clifford Talbot Partnership is working extra hard to make sure you are only paying for the energy you need.

Energy usage at the moment is very different to how it was only weeks ago. For many organisations consumption could be falling and therefore estimated readings could be way more than actual usage. So now more than ever it’s important that energy and water invoice checking is continued. This is where bill verification comes in, a process Clifford Talbot Partnership handles. Without CTP to manage and input accurate energy usage for your company, the amount you are charged could well be based on an estimate. At the moment with so many changes to the way companies are working and therefore a change to energy usage, if you rely on bill estimation you will be charged based on what you would normally use, likely leading to overcharging. Using CTP as your energy management company means we can track this, make sure your charges reflect your actual usage and help you navigate these uncertain times. Without this bill checking, errors could go unnoticed, leading to overcharging which will in turn affect your cash flow.

Find out more about our Utility Bureau Service
What is invoice validation?
6 benefits of using our Utility Management Services

With over 36 years of experience in Utility Management Services, CTP has an outstanding track record for providing clients with the lowest prices for electricity, water and gas. We have always helped businesses to navigate the volatile and complex utility markets, and have no doubt we are well equipped to cope with the uncertain months ahead. You can trust that we are doing everything we can to keep on top of your costs and make sure you are only paying for what you use. Our long history in energy management means we are best placed to spot unusual consumption at your sites which might be under lockdown or reduced capacity.

We know your energy needs are changing and are on hand to help anyway we can. Current clients please contact your Account Manager directly for any questions. Any new clients can reach out to owner Steve Clifford on 07929 345764 or contact us here.

7th April 2020/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

6 Benefits Of Using Clifford Talbot Partnership for Energy Management Services

Account Management, Utility Management

You will save money

If you chose Clifford Talbot Partnership (CTP) to be your Utility Management Service provider you will be paying the lowest prices for your organisation’s electricity, water and natural gas bills. Additionally with CTP checking your invoices, you will not be overpaying for errors and overcharging which would otherwise go unnoticed.

Peace of mind

With over 35 years of experience helping businesses to navigate volatile and complex utility markets you can trust us to make all decisions in your best interest. We will ensure all your utility and water needs are met accurately. You will also have a dedicated account manager on hand to answer any of your questions or concerns.

Minimise risk

By choosing CTP as one of the UK’s leading providers of energy procurement services you will be reducing any financial or contractual risks by avoiding rogue and unreliable energy suppliers.

Reduce wasted time

Our utility management service takes care of everything. That means you will have one point of call for set up, invoices, problems etc rather than having different departments within your organisation working on issues separately.

Understand

Our UK based company focuses on providing easy to follow information for our customers. That means data on energy consumption and cost that isn’t full of complicated jargon.

Keep informed

Your dedicated account manager will keep you up to date of the ways in which your organisation can save both money and energy. We have teams based at our offices in Shropshire and Bristol who are on hand to support you during normal business hours.

8th November 2019/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

11 Reasons to Use a Utility Management Company

Account Management, Utility Management

The energy supply industry is complex. It takes time, knowhow and experience to be across all of its wrinkles. That’s why many companies trust energy brokers with their utility management. Brokers have knowledge and experience of the energy sector that business owners may lack.

Unfortunately, many of those brokers don’t bring all of their expertise to bear. Often, they only procure contracts for clients. There is far more to utility management than that. At Clifford Talbot Partnership we offer a truly comprehensive service. One which can save money, time and stress. The following are 11 reasons of many why that’s the kind of utility management service that you need.

Expert Knowledge

It’s our business and our responsibility to be across all the intricate details of the energy sector. We keep up with changes in legislation and other events that might impact your utilities decisions. That means you don’t have to be an expert in the energy industry to ensure you always get the best deal.

Informed Negotiation

Negotiating the best deal for your utilities can be tricky. If you don’t know how negotiations work or what other options suppliers could be offering, you’ll struggle to get the right contract. We’re highly experienced in such negotiations and are devoted only to getting you the best deal. We’ll bring you the options that fit your needs and help you make the right choice.

Keeping Suppliers Honest

We work with all kinds of clients, across many niches. That helps us to understand exactly what you need and how you should pay for it. We also know exactly how suppliers operate and what contract’s they’re able to offer. That lets us keep suppliers honest and their offers competitive.

Wholly Holistic

Working with us ensures that all of your utility management needs are met. We cover every base and help to save you time and money throughout the process. That doesn’t just mean choosing suppliers or negotiating contracts. We also deal with those little inconveniences that can crop up. From reporting issues to your supplier to checking invoices, it’s all a part of our Utility Bureau Service.

Personal Touch

Every one of our clients’ energy accounts are overseen by a dedicated account manager. Their job is to know your energy needs inside out and to help you make the right utilities decisions. They will work tirelessly to keep your utilities under control. They’re also always at the other end of the phone if you need to discuss anything.

Supplier Relationships

We have experience of working with all of the major energy suppliers. We know which suppliers are best for which business sectors and how’s best to buy from each supplier. That gives us a strong base from which to negotiate from. We don’t, however, have any affiliation with or preference for any specific supplier.

Longevity

We’ve been working in the utilities industry for 35 years. That’s three and a half decades of invaluable experience. It all goes into every contract negotiation we take on and every decision we make. Plus, to have lasted this long, we must be doing something right!

Portfolio Management

Lots of clients we work with have multiple sites, often spread across the country. We can expertly manage your whole utilities portfolio. That might mean arranging group purchases. It may mean responding to unforeseen circumstances quickly and efficiently. We’re also well versed in managing any expansion of your portfolio.

Flexibility

We don’t operate a one size fits all policy. Our utility management service is always tailored specifically to each client. That’s the only way that we can ensure that you get the very best deal. We always help you procure the contract that works best for you.

Supplier Goodwill

Suppliers like working with us. They appreciate the benefit of the experience and knowhow we bring to the table. Our input helps to make the utility procurement process easier for everyone.

Transparent Charging

Many energy brokers make it difficult to know how and how much they’re charging. We’ve always believed that transparency is a better policy. Whether you work with us on a commission basis or via fixed fees, you’ll always know exactly how much you’re paying.

If our comprehensive service sounds like the kind of utility management you need, get in touch to find out more. Call one of our friendly staff on 01630 685 144 or request a quote today.

23rd May 2019/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

How Do I Know If My Energy Broker is Ripping Me Off?

Account Management, Transparent Fees, Utility Management

Working with an energy broker is all about trust. You trust the broker with catering to your utility needs so that you can focus on other aspects of your daily activities. You expect that they will be impartial and do everything they can to get you the best energy deals.

What you don’t expect is for them to be lazy, uninterested in your utility needs or even worse ripping you off. It is an unfortunate fact that some brokers behave in exactly that fashion. They can get away with it because of the lack of regulation in the small business energy sector. Ofgem are the energy industry regulators, but third party brokers themselves are unregulated.

Laziness from your broker can creep up gradually over time or might be a sign of an unscrupulous firm. Either way, it is a huge problem and a massive frustration. You won’t be getting the service you deserve, and you’ll often be paying through the nose for your utilities. That’s why it’s crucial to recognise the signs that your broker is lazy and not doing the job you are paying for.

Waning Interest Over Time

If you’ve worked with your broker for a long time you’re likely to trust them implicitly. Your working relationship to date will have proved to you that they’re not con artists and don’t engage in underhand practices. That doesn’t mean that they can’t or won’t get lazy.

Brokers can become too laid back with long-term clients. They might take your business for granted and assume there’s no chance you’ll leave them now. Often you’ll start hearing from them less, as they’ll be focussing on new more interesting projects. That means they won’t be tirelessly seeking out the best deals for your utilities, as they would have at the outset of your relationship.

Lazy Account Management

Sloppy and unreliable account management is a sure-fire sign of bad service from your broker. Outsourcing your energy needs should mean that all the responsibilities are taken out of your hands. Brokers should send you regular reports and be available to speak on the phone or schedule meetings.

If you find yourself having to chase those reports, or feel like your calls are being dodged, you have a big problem. If when you do get through to your broker you always end up talking to a different contact you’ve got another issue.

Never being able to speak to the same person is more than bad customer service. It shows that no one person at your broker has ultimate responsibility for your account. That means nobody is getting really familiar with your needs and making sure that they’re always met.

Invoice Errors

The fear of paying too much for energy or of having mistakes in your invoices is why businesses go to energy brokers in the first place. If you find errors and problems in the invoices your broker has negotiated, just what benefit are you getting from them?

You or your team will need to get those errors corrected and spend their precious time on doing so. That’s the tip of the iceberg, too. Errors in an invoice are a sign of a fundamental failure from your broker. Why should you trust that they’re getting other things right? It’s a big risk.

Missed Procurement or Renewal Opportunities

If opportunities for procuring the best rates for your energy contracts are passing you by, your broker isn’t doing their job. You are paying them to recognise and act on those opportunities when you need a contract to be procured or renewed. It is the whole point of having a broker.

Missing such opportunities is an indicator of either laziness or a lack of expertise. Either way, you could be getting more value for money from your broker. The problem with this indicator, however, is that by the time you realise you’re missing opportunities it’s often too late. That’s why you’ll want to catch the subtle signs first.

Code of Practice

Third party energy brokers are currently unregulated. Trustworthy firms, however, will hold themselves to an individual code of practice, like we do. That code of practice will set out their commitments to their clients and is an assurance against laziness and other issues. Alarm bells should start ringing if you find that your broker does not publish a code of practice for all to see.

Working with an energy broker should give you confidence. You ought to be sure that your energy needs are well-served and that you can concentrate on other things. If you spot any or all of the above signs, you can’t possibly have that confidence. It’s time to make a change.

If you’re confident of your broker’s trustworthiness and abilities, you might choose to tell them in no uncertain terms to raise their game. Otherwise, you’re best served searching out a new broker.

At Clifford Talbot Partnership, we give all of our clients the undivided attention they deserve. A dedicated account manager takes responsibility for the handling of your account. They will get to know your circumstances and needs intimately and will always work to get you the best deals. They have ultimate ownership of your account and are never more than a phone call away.

If you want to find out more about how Clifford Talbot Partnership could help you get in touch with us today.

3rd April 2019/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

Are You Still Spending Too Much Time on Your Utilities After Appointing a Broker?

Account Management, Utility Management

Energy brokers, or third party intermediaries (TPIs) as they’re also known, can be invaluable to businesses of all types. They provide a crucial service and take the hassle and worry out of procuring and managing energy contracts. That leaves staff able to concentrate on their actual business priorities.

At Clifford Talbot Partnership, we’re proud of the all-around service we offer. We proactively seek to do as much for our clients as possible and ensure they always get the best deals. Some energy brokers operate differently. Either through laziness or lack of care for their clients, they provide a far more limited service. That leaves businesses having to spend more time on their utilities than they should.

Those TPIs can get away with this because many businesses don’t understand exactly what their broker ought to be doing for them. The following is a list of questions you need to ask yourself to discover whether you’re getting the best service from your broker.

Are You Still Dealing With Your Energy Suppliers?

In the course of a usual month are you still having to contact your energy suppliers yourself? Do issues with contracts, billing and supply still come through your office? If so, your energy broker is neglecting a key part of their job.

Brokers shouldn’t only negotiate an initial contract. They should also liaise with suppliers and smooth out any issues. You’ve outsourced your energy needs to a broker so that your time doesn’t get taken up by these kinds of problems.

Does Your Broker Understand Your Energy Priorities?

Your broker should know your firm’s priorities inside out. It’s the only way to negotiate the right contract. They need a full understanding of your energy usage, desired contract duration and everything else besides.

If they don’t have that understanding they can’t get you the best deal. What’s more, it means you will have to deal with the fallout of having initially had the wrong contract negotiated. Time spent asking suppliers to change payment terms or trying to get out of a bad contract is time wasted.

Do You Double & Triple Check Energy Invoices?

It makes sense for you to ensure that your energy invoices are accurate. Any mistakes can prove costly. Checking for those mistakes is something that good energy brokers will do on your behalf. You should have confidence that the invoices your broker negotiates and organises are correct.

If you don’t have that confidence, and worse if you find your invoices to regularly be in error, you may be with the wrong broker. Your current choice might be too lazy to do their job properly. Or else, they have a very narrow definition of what their job actually is. This factsheet from Ofgem offers some great advice on what to do if you do think you have a problem with your broker.

Do You Enjoy a Seamless Payment Process for Your Energy Bills?

Energy brokers should know to simplify the invoice payments process for their clients. They should also be knowledgeable enough to be able to do so. Invoices should arrive with your finance team in a standard format and with any and every internal reference they require.

If the process is not seamless, then it will take up more of your team’s precious time than it needs to. Your broker is simply not providing the best service possible.

Is it Quick and Easy to Contact Your Broker?

From time to time you will need to speak to your broker. Whatever your query is, it should be simple to reach your broker and talk about it. One phone call should connect you to the account manager who knows everything about you and your account. That account manager, too, should regularly be proactive and contact you. It can’t be a one-way street.

If you’re left leaving messages or speaking to people who can’t provide answers, it’s a problem. Not only does it waste your time, but it also suggests that there isn’t one contact with ultimate responsibility for your account.

Does Inefficiency Make Dealing With Your Broker a Constant Hassle?

The whole point of having an energy broker is to make your life easier. Appointing a broker should take the task of managing your energy supply off your desk entirely. That’s not much use if dealing with your broker becomes just as time-consuming as dealing with suppliers.

If your broker bombards you with forms to fill in and other extensive paperwork, they’re wasting your time. If they refuse to adapt to your preferred information or document formats, they aren’t doing their job.

If you find yourself losing time to any or all of the above issues, you have every right to be frustrated. Brokers who don’t make the lives of their clients as easy as possible, aren’t supplying the best service they can. Those who try to upsell and ask for extra fees for any of the above activities are basically pulling a fast one.

It doesn’t have to be like that. Clifford Talbot Partnership act as a one-stop-shop for all your utilities management services. We ensure that all your time can be spent on running and growing your business. If that sounds like your kind of arrangement, contact us today for a quote.

18th March 2019/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

Find Out Exactly How Much You Are Paying in Commission to Your Energy Broker

Account Management, Transparent Fees, Utility Management

Most companies choose to trust the procurement and management of their utility contracts to Third Party Intermediaries (TPIs) or energy brokers. It’s something of a no-brainer, as purchasing directly from energy suppliers almost always results in higher charges.

Unfortunately most end users do not understand the way that many energy brokers make their money. Most brokers agree a commission fee with suppliers. This is perfectly understandable and above board.

What companies don’t understand is that they pay for that commission. The suppliers do not cover it. It’s crucial that you understand this, if you have an energy broker or are considering appointing one.

You need to appreciate not only that you are paying the commission but also how much that commission is. If you have this information you can ensure that you’re getting a service that’s value for money. Unfortunately most companies do not have this information, and it is a problem.

How Does Commission Work?

When you entrust an energy broker with procuring your utilities contracts they negotiate those contracts with suppliers. A key part of the negotiation is setting an agreement of the broker’s commission fee. That fee is expressed as an amount per unit of energy, usually in pence per kWh. The more energy you use the greater the amount that your broker is paid.

The energy suppliers do not cover the commission, as many businesses mistakenly believe. Instead, the fee per kWh is added to the cost per unit that the suppliers charge the business itself. There is nothing underhand about this, but there is one major problem. That is that the fee is not detailed on any utility bill.

Many businesses assume they are not paying a commission, as it does not appear on a bill. Those firms who do understand that it is they who cover the commission have no immediate way to find out how much they pay. Plenty of brokers who charge in this way are entirely reputable and trustworthy. Unfortunately some are not, and take advantage of this situation to exploit their customers.

The Office of Gas and Electricity Markets (Ofgem), a UK Government regulatory body, is aware that this is an issue that needs to be addressed. As this article from 2014 highlights, Ofgem have tabled recommendations, including a code of practice, for suppliers and brokers to protect businesses from miss-selling.

Unfortunately legislation is still pending, which means your business could be spending more than it should on electricity bills. If you need to find out how much commission you’re paying to your current energy broker we suggest you follow the steps outlined below.

Finding Out Exactly How Much Commission You Pay

Rather than asking your broker how much they are being paid, we recommend that you contact your energy suppliers. You can find out from them what commission and incentives were involved in the negotiation of your utility contracts. That way, you have all the information you need to properly assess the service that your broker is providing you. Getting that information from your suppliers is as simple as following these three steps:

Contact your broker and ask them to complete and sign this template

Once it is signed, this form gives your energy suppliers permission to disclose commission and incentive information directly to you. Your broker should feel obliged to sign this template if you request it. If they refused to sign you would have to ask yourself why.

Send the completed template to your suppliers, using this draft email/letter

So that you know what to request from your suppliers we created this draft letter/email for you. You will need to insert a few pieces of relevant information to the template, including relevant names and account numbers. The letter asks the suppliers to provide the information you need to find out how much commission you’re paying.

Calculate the annual commission you pay

The response you receive will notify you of the commission fee attached to your contract. That fee will likely be expressed as an amount per energy unit (i.e. pence per kWh). You can use this information to calculate how much commission you are paying over the course of a year.

If you know your exact annual energy consumption in kWh, all you need to do is multiply that figure by the commission fee. If you don’t have that information, contact us and we can provide you with an accurate estimate. All we’ll need is some simple information, like your annual energy expenditure.

Issues Associated With Commission

When you have calculated your commission payments you need to decide if you are getting value for money. If your broker operates on commission, you need to be evaluating if they offered you impartial advice. There are several considerations to keep in mind when assessing your broker’s impartiality:

Choice of Suppliers

You need to trust that your broker has chosen the energy suppliers that are right for you. Their choice should consider your company’s energy uses and needs, not which suppliers pay them the most commission. It’s crucial that certain suppliers are not excluded because they won’t meet a broker’s desired commission rate.

Contract Length

Locking a company into a long-term contract can be good for an energy broker. A three-year contract means three years’ worth of commission. Even if a company changes broker before the contract ends, the original broker continues to get their commission for the full term. You must be sure that contract lengths negotiated by your broker have your interests and not theirs as their motivation.

Comparative Savings

Even if one supplier’s base rate is comparatively lower than a competitors, that won’t matter to you if they pay your broker a higher rate of commission. You need to consider how much of any saving gets passed on to you and how much goes to your broker.

Greed & Sharp Practice

Failing to be transparent about commission rates can be a sign of more serious misdemeanours by an energy broker. If a company is unaware of the commission they’re paying, greed on the broker’s part could lead them to impose an unfairly high rate.

A small increase in the rate of commission can lead to huge costs for a business in the long term. It is only by knowing exactly what you pay that you can ensure you’re getting a fair deal.

Our Professional Approach

Clifford Talbot Partnership takes a transparent approach to energy and utility management. We recognise and understand the issues attached to commission and how they can impact the recommendations a broker makes.

Consequently, we prefer to operate on a fixed fee basis, with our charges agreed upon up-front and paid direct by our customers. If a customer does want us to charge via commission we can still do so. When working that way, we will always be clear about the rate we charge and what a customer gets for their money. That transparency means you can be confident that we will always treat you fairly.

Our impartiality is assured as no customer is ever kept in the dark about our charges. Our only considerations when negotiating contracts are the best interests of our customers. That’s also why we provide a Full Utility Bureau Service not just procurement. We provide bill validation, dispute resolution and many other key features. All of which come under the supervision of a dedicated account manager

Download our handy templates today to find out how much commission you’re paying. We’re happy to provide you with impartial advice on the commissions your current broker is charging you.

19th February 2019/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

4 Things You Need to Think About When Procuring Your Next Business Energy Contract

Account Management, Utility Management

For many organisations, utility procurement – and finding the best possible contracts for your energy, gas, and water – is often more complicated than it should be.

Some people simply let their contracts rollover for years, continuing to use the same providers and paying uncompetitive contract rates instead of exploring options. However, choosing to do so often will result in spending far more than necessary to cover your utilities.

To help you navigate this sometimes confusing and tricky process, we’ve put together a guide designed to help you address four major areas you should be thinking about as you procure your organisation’s next energy contract.

Do You Need Renewable Energy?

Many businesses are transitioning to renewable energy all over the world to cut emissions and minimise their environmental impact. This is especially true in the United Kingdom, where according to data from the Department for Business, Energy, & Industrial Strategy, commercial energy supply was responsible for over 25% of CO2 emissions in 2017.

Now, more than ever, there are many supply contracts available offering fully certified and certificated electricity procured from sources that either produce low or no carbon.

Until recently, renewable energy contracts have often been more expensive than traditional energy consumption, but many major suppliers now offer green electricity contracts at little or no extra cost.

How Long is Your Contract?

Every business is different – and the energy contract that meets your needs at the best price may be very different from what best suits other organisations.

Contracts can be anywhere from one month to over 5 years in length, and your choice can affect how much money you save or lose on energy over time.

Short term contracts are lower risk, which typically means that they are less expensive. If you are planning on relocating your organisation or are only responsible for providing energy to a site for a short period of time, this may be your best choice.

However, you will also need to renegotiate your rate sooner than later – and fluctuations in rate may significantly affect your budgeting. You may also receive less bids for your business, and switching energy suppliers multiple times across a number of short term contracts can add to your workload, complicate how your consumption is reported and tracked, and create unnecessary administrative headaches.

A long term contract can save you hassle and frustration solely in the fact that you don’t need to renegotiate as often, making it easier to budget and plan around your energy consumption. You will also likely receive more bids from suppliers for your business. However, if market prices are peaking, you may overpay for services over time. Additionally, in the event that you move or relocate your business, you may be subject to early termination clauses or other penalties.

Do You Need Automated Meter Reading (AMR) or a Smart Meter?

Automated Meter Reading equipment eliminates the need for on-site meter readings, allows your supplier to remotely read your meter, and ensures that your bills are both more accurate and delivered on time.

For most business supplies, AMR is required. Fortunately, over the long term, this will help to cut energy waste and reduce environmental impacts, as well as save money.

If your organisation still needs to install an AMR or smart meter, this can be arranged as you procure your next contract.

When Should You Go To Market?

Energy contracts are often agreed upon far in advance of the start date in order to lock in the best possible rate, and it is in your best interest to secure a competitive rate as early as you can in order to avoid needing to agree to terms at the eleventh hour.

Furthermore, in the summer and early autumn wholesale energy prices are considerably less expensive than in the winter and spring months, when energy usage is highest, so you should plan accordingly if considering a non-annual contract duration.

If any of this sounds intimidating, there are other options available.

An honest energy broker will help you find contracts that meet your needs at the best prices possible, negotiate any necessary agreements, and use their direct relationships with energy providers to quickly and efficiently solve any issues you may have with your utility provider or service in the future.

If you’d like to find out how our Utility Bureau Service can help you negotiate your next energy contract, simply click here to schedule a free, no-commitment consultation.

30th October 2018/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

To Make Sure You Get the Best Deal, Ask Your Utility Management Broker These 6 Questions

Account Management, Utility Management

As business owners, we are always looking to get the best in everything from our providers and partners, and utilities are no exception. Almost everyone relies on electricity, water, and gas providers, and we all know how costly and frustrating disruptions in these services can be.

Furthermore, navigating the utility markets can be far more difficult than it seems it should be. Contracts must often be executed within hours of being issued because the rates change quickly. Many providers will charge you higher prices if your contract expires and you continue to use them without negotiating a new agreement, leading to many business owners paying far more than they ought to for months or years on end. To make matters worse, utility suppliers often make significant errors in their accounting, many of which require a keen eye and industry knowledge to identify, correct, and get refunded.

These are just a few of the reasons that many business owners can save money by hiring a utility management broker. However, not all brokers work the same way – and there are several key questions that you need to ask a prospective or new utility broker to determine if they’re truly on your side and working to get you the best possible rates, contract terms, and service.

When you ask these six questions, you can learn a lot about your broker, their service, and what you can expect from them.

Which suppliers do you work with?

Some utility brokers work regularly with a small number of suppliers because these companies provide the broker with preferential commissions. However, this should never be why a broker chooses a particular supplier – your broker’s job is to get you the best possible deal, not them. If they only work with a small number of suppliers, be sure to ask why this is and if they are being paid commissions.

Can I choose which supplier we work with?

You should have the freedom to choose with suppliers your company does business with. If your broker refuses to let you make this decision, it is an immediate red flag that the broker is likely choosing suppliers based on the commission they receive, not the service or rates offered to you.

How much do you charge for your services?

If an energy broker ever tells you that their services are free and that they are paid by the supplier, they are lying to you. In this situation, the broker’s commission is a hidden cost added to your contract, and your supplier does this to pass the broker’s fees on to you. It may not be obvious, especially since this fee is agreed upon between the broker and the supplier, and is rarely listed as an itemised expense on your utility bill, making it easy to hide how much you’re being charged – as well as how much you could have saved by working with another broker.

What does my utility management service include?

Many brokers say that their services are “all-inclusive” – but don’t clarify what exactly that means. In fact, many brokers offer a minimum basic utility procurement service, but then charge additional fees for any other services you may need. Follow up this question by asking if your broker considers contracts of different durations, and if so, what the basis for their recommendations are. If the broker says yes and bases their decisions off of market conditions, you’re likely in good hands. Additionally, find out if the broker sends termination notices to suppliers – a service many charge additional fees for.

How much will you be paid by the supplier as commission?

TPI agreements may indicate that brokers will disclose this information if asked – if so, simply ask them, and they will tell you how much they are paid in commissions. If needed, you can click [here] to download a template giving your supplier permission to disclose the commission paid to your broker, and click [here] to download a draft letter that you can send to your supplier in order to find out what they are paid in commission.

You may be paying significantly more than you should be for your broker’s services – especially if they have told you that their service is free!

Will I have a dedicated account manager?

Many energy brokers have an email-based ‘ticket’ support system. However, these can lead to long delays and frustrations, especially if you are constantly in contact with new support teams and individuals who aren’t familiar with your business’s specifics needs and challenges.

However, if you have a dedicated account manager on your team who knows you and understands your portfolio, you can call them whenever you have problems or even simply need questions answered – and this can save you time and hassle.

When you’re next considering hiring a utility broker – or if you’re currently considering alternatives, you should know that at Clifford Talbot Partnership, we provide all-inclusive utility bureau services with no hidden fees. Each of our clients has a dedicated account manager, making communication fast, direct, and clear. If you have any questions or would like to schedule a no-fee, no-commitment consultation, feel free to contact us today.

5 Ways Bad Customer Service from Energy & Water Suppliers Could be Costing Your Business

Account Management

So, you’ve negotiated that great new deal with your energy supplier for next year’s energy, you’ve checked their terms and conditions and are eagerly awaiting the savings on your first invoice.

But if you’re not careful, that great deal could end up costing your business more than you’d hoped – both in time and money, if your chosen supplier fails to give you the good customer service you expected.

There has been a lot of coverage in the news recently about poor customer service in the domestic energy market; Ofgem have recently issued fines to suppliers ranging from £1m to £26m due to customer service failings and mishandling customer complaints. Unfortunately situations like this are not uncommon in the energy industry and are not isolated to the household suppliers – recent fines and sanctions have been handed out to business suppliers as well.

There are a number of ways suppliers can make it challenging to effectively manage your energy contracts and this can range from late or inaccurate billing to unhelpful customer services teams and broken promises on those juicy extras negotiated at renewal so we thought we would share some common issues to lookout for.

1. Billing Errors

Incorrect invoices can quickly build up very big time overheads, if you are having to hunt down bills sent to incorrect addresses or to correct wrong payment terms. The financial implications of sloppy billing can also be significant; businesses being overcharged might never detect the problem without professional support. Looking the other way and undetected undercharges could be a ticking time bomb with significant costs.

2. Billing Corrections

You have spotted the error and the supplier has agreed to correct it. But how your supplier generates bills can be another sticking point with some suppliers only able to ‘reconcile’ bills instead of cancelling the originals out right. This is particularly true for SME energy and water suppliers and can quickly lead to a large number of increasingly complex bills for just a single month all needing to be processed.

3. Payments

Payment terms can have a big impact on the cost of your energy for a year-long contract. Whilst some supplier’s levy additional charges for non-direct debit payment (even if you contracted for non-DD terms).Others have punitive late payment charges with excessive fixed charges and interest rates. This is quickly frustrating if the source of the delay was the supplier’s error. Even if you pay by Direct Debit you are not immune to payment woes with some suppliers failing to suspend payments for large overcharges whilst “resolving” issues, then take the payment anyway. Combine this with a supplier reconciled billing and your accounts can quickly become an unmanageable mess.

4. Meter readings

Do you remember to take meter readings on a regular basis and pass these to your supplier in time for the invoice to come through, or are you finding that your invoices are mostly based on estimated consumption? Some supplier’s even charge you for revising invoices based on estimated meter reads, if they are not sent over within a set timeframe. Others refuse to correct until the next bill leaving you to pay high over estimated invoices.

5. Contact Centres

Poor customer service can come under a variety of banners, and one of the key pitfalls businesses meet when dealing with their energy supplier is the contact centre. Suppliers with long wait times and outsourced call centres can cause a real headache when raising even a simple query. We deal with one supplier who, since moving their call centre abroad, has more than doubled their service level agreement for resolving issues and another who’s SLA for sorting out complaints was over 5 months!

This often leads to a disproportionate amount of time required for your staff trying to resolve relatively simple issues, complicated both by poor service on behalf of the supplier and a potential lack of understanding of the energy industry.

What to do

There is not a single supplier in the market that wants to provide bad customer service (this is not the same as wanting to provide great service mind you). It is time consuming for their staff and bad PR for their sales teams.

If you are receiving poor customer service therefore let the supplier know and raise a complaint. If you are doing this then start keeping detailed notes. Time, date and names, what was agreed and deadline. Spend a few minutes reading the suppliers compliant procedures and escalate the complaint at the earliest opportunity. Remember just because it is their system or procedure doesn’t mean you have to be happy about it!

If you qualify to be able to refer your complaint to the ombudsman do so. Let the supplier know you are about to – you may well get a last minute change of heart.

Prevention is better than cure

If you are organising your own contracts; do some research on customer service levels but beware mistaking SME & C&I departments; these are often quite separate and service levels can be drastically different.

If you are using a broker/consultant (Third Party Intermediary TPI) for your contracts find out what percentage of their clients they do hands on account management for. TPIs potentially have great visibility of current supplier trends as they tend to work with a large number suppliers at any given time.

If you are struggling with bad customer service consider employing a TPI to manage your energy accounts, one of the key benefits could come from invoice validation – especially when they are working on a fixed fee basis (as opposed to shared savings). That way, your staff aren’t spending hours on the phone trying to sort problems because your TPI is doing that job for them and because it is fixed fee it is in the TPIs interest for things to run as smooth as possible too.

16th April 2018/0 Comments/by 2575

10 Energy Contract Pitfalls That Could Be Costing Your Business Money

Account Management, Utility Management

Energy supply contracts have become increasingly complex, the result of sustainability and infrastructure investment incentives being funded via consumer’s energy bills. This is particularly true for electricity supplies. Add into to the mix the huge range of products available and supplier nuances and it is no wonder then that unsuspecting customers can be tripped up.

Here are 10 common contract pitfalls to bear in mind to help make sure that bargain energy contract is as good as it looks:

1. Automatic Renewal

Many business energy supply contracts require notification to be sent to prevent automatic contract renewal. If this is not done you could find your business trapped with unattractive rates with very little or no room for negotiation!

Check your terms and conditions and welcome letter. The amount of notice you are required to give varies from supplier to supplier in addition some specify notices be sent to a specific department to be valid. Do this before spending lots of time on lengthy negotiations – agreeing a contract elsewhere that you are unable to start due to automatic renewal can be very expensive.

2. Data, Data, Data

Check your consumption data thoroughly – don’t assume the consumption on your renewal quote is correct. Mistakes can be made easily enough but in addition your current supplier will not know about any planned changes you may have.

Having a good forecast of your energy usage is key to comparing suppliers’ offers accurately. In addition you can open up your business to significant penalty charges for using too much or too little energy…

3. Consumption Variation Penalties / Take or Pay

Do you know what would happen if you consume more or less energy than quoted on your supply contract? Do you know what threshold is allowed? Are you tracking it currently?

Many contracts have provision for additional costs if you use more or less energy than you agreed to and this can be buried in the fine print of their terms and conditions. The most punitive of these are effectively a promise to pay for the minimum consumption irrespective of the actual energy used (Take or Pay). Other similar penalties are linked to wholesale prices, effectively charging for any losses incurred by the supplier to sell the energy back to the wholesale market.

This is particularly important if the future of a site or production is uncertain as it can result in significant unexpected charges. Good job you’ve already checked your consumption forecast!

4. Fully Inclusive

There are a host of additional charges from 3rd parties that suppliers are required to collect from their business customers. Many suppliers offer inclusive contracts consolidating some of these into their unit rates. Not all are fully inclusive however with some excluding the more volatile sustainability charges, others separating metering and data collection charges. This is not always obvious but it is important to check as combined 3rd party charges can easily make up 50% of the total cost of your bill!

5. 3rd Party Pass Through

Does your contract allow the supplier to pass on changes to any of their 3rd party costs? If so they could be looking artificially cheap as almost all 3rd party charges increase annually. Don’t confuse a fully inclusive contract (everything simplified into the unit rates) with a fully fixed contract (prices won’t change mid-contract) – suppliers can still pass these on unless your contract is fully fixed.

6. Climate Change Levy (CCL)

CCL like VAT is excluded from the contract rates so remember to factor it in when estimating your costs. This is important as it can make up to 10% of the total cost of your energy bill which can seriously hurt your budget! Also remember CCL changes April every year and is always passed through even if the rest of your contract is fully fixed.

If you are exempt from CCL (eg. Charity) or have CCLA’s remember to submit your forms straight away so your account is set up correctly from the start.

7. Broker Commission

Are you using a broker? If so how much are they adding to the cost of your bills? Commission on bespoke priced commercial energy contracts is added on top of the supplier’s base contract rates. An unscrupulous broker can easily set excessive commission rates which are not clear in either the contract or the bills.

Make sure you have a fixed commission rate agreed with your broker up front and verify that the correct rate has been used with your supplier. If they are unwilling to do this – buyer beware! Brokers can add potentially huge commission and even modest sounding kWh commission can rack up massive costs on larger supplies. Alternatively ask your broker to go commission free and work on a direct fee basis.

8. Additional charges

Some suppliers levy additional charges for non-direct debit payment terms even if the quote contract states a non-direct debit payment method. Some of the largest we have is a flat £25/bill (£300/year) or 5% rate uplift.

9. Invoices

If you have a portfolio with a large numbers of non-half hourly electricity or small gas supplies billing can be a big factor. Some suppliers offer quarterly invoicing instead of monthly, a difference of 8 fewer bills per month per supply. You only need 12 supplies before you save a whole day of administration time (assuming 5 minutes per bill)!

Alternatively group billing could save you significant processing time – condensing a group to just a single monthly invoice.

10. Customer Service

You have found the cheapest deal – but are you locking yourself into a year of headaches of incorrect bills, unallocated payments and hours of phone calls on hold with your new supplier?

This is tricky to know in advance as many customers usually only have experience of a couple of suppliers at any given time and individual suppliers performance can quickly change. The situation is further muddled as each supplier often has separate teams for different types of supply and business size.

Do some research online on supplier performance levels but be sure to check any feedback is for the correct department (often I&C or SME). Alternatively use a broker that also provides account management/bill checking service and works with a range of suppliers – they will have first-hand experience of supplier’s pros & cons.

Automatic Renewal…

So you have just agreed your new, perfect supply contract and have dodged some costly and time consuming pitfalls! Don’t forget step 1 – if your contract allows it, send your notice to prevent automatic renewal now. Just remember to save a copy of your acknowledgement!

Disclaimer: The information contained in this article is based upon our own experiences and observations providing energy management, energy procurement, bill checking and dispute resolution services for business customers. It is not intended to cover every contract situation, energy supplier or customer type and it is a customer’s own responsibility to fully understand any contract they are entering into and to seek professional assistance where required.

15th March 2018/0 Comments/by Steve Clifford, CEng, MIMechE, MEI, MCIBSE

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