Opinion: When energy brokers play dirty

By Trident Utilities

07 Aug 2013

We’re constantly being told to compare the market in our search for cheaper energy prices. But are we being prevented from making meaningful comparisons by a system that’s too complex, and a culture of truth-bending? Trident Utilities’ Darren Robertson investigates what he says is a disturbing - and even malicious - lack of clarity in energy offers.

Company X is entitled to a Climate Change Levy rebate. They’re advised to switch to a green contract that will “save them money.” Instead, they lose their rebate and pay more for their energy.

Perhaps it’s an honest mistake on the part of the advisor. Perhaps it’s incompetence. Perhaps it’s something more sinister. I have met enough frustrated businesses to suspect the latter.

Clients tell me they’ve been quoted energy prices which were ‘fully inclusive’ of all charges and taxes, but failed to include the Climate Change Levy or Renewables Obligation.

In other instances the supplier is inaccurately quoting these and other pass through costs, making them seem cheaper than they really are.

In my experience, I estimate that where prices have been misquoted, the average level of discrepancy is 10 per cent. Given that many of the businesses with which I work have an annual energy expenditure of £500,000+, that’s more than a minor inaccuracy.

Is this a lack of clarity or duplicity?

I think a market that’s inherently complicated carries with it the risk of error. As brokers and suppliers, it’s our role to make that market clear, so the client can make an informed choice that’s also the right choice. Simpler energy pricing has again been called for by both Ofgem and EDF in the past month and it’s essential to eliminating errors and bad decision-making.

But there are organisations which I believe are deliberately taking advantage of the fact that energy pricing isn’t easy.

Certain companies have a ‘say anything to get the sale’ approach. With some, client benefit is such a distant second to maximising margin that they’ll reduce expected consumption levels in order to make the quote seem more attractive. I’ve even seen claims of special or unique arrangements with suppliers that simply don’t exist.

Make pricing clear and you remove the potential for clients to be misled. Yet until changes are made, the responsibility for ensuring all is as it seems rests with the client.

If surcharges aren’t included, or they don’t look realistic, you should ask questions. If you don’t know what ‘realistic’ looks like, use the following table as a guide to costs that may form part of your quote:

Feed In Tariff 2-4% Renewables Obligation 10-12% Climate Change Levy / Green Uplift Charges 5-7% Transmission Charges & Losses 3-5% Distribution Charges & Losses 10-15% Other (AAHEDC, BSUOS etc) approx. 3%

And if the energy market still seems too bewildering to enter alone, take a broker you trust with you.Darren Robertson is director of energy trading at Trident Utilities. An energy analyst and procurement specialist and member of the Society of Technical Analysts, Darren has more than 25 years’ experience working within the energy markets and has been directly involved in the development of innovative flexible contract terms, with energy suppliers for both large energy consumers and SMEs.

Enjoyed this? Read more from Trident Utilities

Latest news

1

Three weekly domestic waste collection considered in plans Waste recycling Blackpool

Three weekly domestic waste collection considered in plans

01 Jul 2025

2

Graham Engineering confirms acquisition to a2e Industries Graham Engineering

Graham Engineering confirms acquisition to a2e Industries

01 Jul 2025

3

Training 2000 celebrate 'Good' rating by Ofsted Training 2000

Training 2000 celebrate 'Good' rating by Ofsted

01 Jul 2025

4

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

5

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin