Managing the not-so-secret world of energy broker commissions

In recent years, energy brokers have come under heavy scrutiny, often portrayed negatively in the media. Claims firms have ‘jumped on the bandwagon’, promising businesses the chance to reclaim thousands of pounds in ‘secret’ or ‘hidden’ fees.

While it’s true that there is currently a lack of transparency in the market above microbusiness level, leading some brokers to take advantage of uninformed clients to enhance their profits, we must remember that we live in a free market where buyers have a choice. And it is always wise to “Caveat Emptor”, as the saying goes – informed choices lead to better outcomes.

The realities of broker commission payments

Brokers exist in countless industries and are commonly used by many of us to source anything from mortgages to pet insurance. Most of us turn to price comparison web sites (which ultimately are just a broker) to help make our lives easier and avoid the hassle of obtaining multiple individual quotes. The B2B energy and non-domestic water retail markets are no different. For many businesses, the reality is that utilities are just one of the many things that they have to source, and they lack the expertise or time to engage with multiple suppliers to obtain a suitable agreement. Brokers simplify the market and ultimately provide a valuable service for which they make money – this is the essence of capitalism! Any individual or business that really believes that a broker would provide their service free or for a nominal charge is arguably at best naïve.

For a typical B2B utility supplier, brokers are not just a convenience; they are essential. Over half their business is sourced through brokers, so maintaining positive, efficient and productive working relationships with them is critical. In addition to making it easy for their brokers to obtain a quote for an end client, ensuring the accurate and timely payment of contracted commissions is also key.

However, the current processes for managing broker commission payments are outdated and inefficient. Every aspect of broker management is laborious, complex and time-consuming, taking focus away from more core business activities. Most suppliers rely on manual methods or ‘grey IT’ systems such as spreadsheets. This leads to teams juggling multiple spreadsheets and making individual calculations, with a high risk of errors creeping in. These non-core systems are typically not stored or supported centrally, increasing the risk of data loss and raising concerns around data protection. 

Supporting more productive relationships with energy brokers

Recognising that an easier process for utility suppliers is long overdue, our experts have developed CGI Energy Commission Suite, in collaboration with two leading B2B energy suppliers, to transform the way broker commissions are calculated and managed. For both utility suppliers and brokers, this solution can reduce costs, risks and disputes. It’s easier and less stressful for supplier commissions teams and ensures brokers receive their agreed fees accurately and on time. It’s also a fully supported and managed solution, so there’s expert advice on hand if needed.

We’ve built CGI Energy Commission Suite as a software-as-a-service solution with API integration points for easy connectivity with existing systems, such as those responsible for finance or billing. This interlinking removes the pressure from administrators and further streamlines broker management and commission payments, addressing a critical need in the industry. The solution is built on our partner Netcall’s Liberty Create low code platform, which opens up opportunities for adopters to use the same platform to rapidly and cost effectively tackle other business challenges that are managed manually or through unsupported solutions. Our experience suggests the industry has many such opportunities! 

If you are a B2B utility supplier wanting to better support your valuable broker relationships, or a broker wishing for more efficient supplier interactions, it’s time to embrace change! Let's move towards a future where broker management and commission payments are seamless, accurate, and stress-free.

Please get in touch to discuss your requirements with our expert team.