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The myths behind the energy broker market

23/03/2018

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How to avoid getting locked into a higher rate

Myth 1: Energy brokers get special prices.

Energy brokers will have you believe that they get special prices from suppliers that you would not get access to. Brokers will tell you that, through bulk purchasing discounts and volume of deals placed, they can get you a good rate.

FACT: Energy brokers get the same price as you or I, there are no special price books or bulk deals. They simply take your information and match it to the price books supplied by the energy companies. In some cases, the energy broker may get its price from a sub-broker. This means the price you receive may have been inflated two or three times.

troo: At troo our portal analyses your data quickly and efficiently, and performs all the comparison calculations presenting you with the prices direct from the supplier. We save you time and hassle with prices you can trust.

Myth 2: Energy broker services are free.
Some brokers will let you believe that the services they supply are free. They will tell you they get their fee from the supplier or there is no direct cost to you.

FACT: Nothing is free in life or indeed energy. Brokers simply get a price from a supplier, say 10p and their commission say 3p, and sell that as 13p to you. The supplier then bills you and collects the extra 3p for every unit and passes it to the broker. You don’t get a bill directly from the broker but you are still paying them. In fact, you pay them for the full duration of the contract with the supplier.

troo: At troo we don’t add a commission to your rate, you get the rate direct from the supplier. We charge the supplier a small flat fee for every contract we place with them. We also fully disclose to our customers so no funny business in your rates.

Myth 3: Energy brokers search the whole market.
A lot of energy brokers claim to be “whole of market” in that they check every supplier to get you the best deal.

FACT: No broker can be whole of market, there are simply too many suppliers and other forms of generation. The reality is that a broker will push you toward the supplier that gives them the best commission and hide it behind the fact they have scoured the market for you.

troo: At troo we don’t search the whole market, we simply deal with suppliers we know are competitive, have great customer service and will agree with our ethos of fairness and transparency. As we get the same fee and have the commercials from each supplier, we have no need to push you in one direction or another.

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