The broker-supplier relationship is a difficult one to quantify.
What customers hear in the news is in no way representative of an incredibly important UK industry.
But this does not mean that there is not a nasty side to the business of brokering. Dodgy brokers do exist, and if proper precautions are not taken, are fully prepared to separate you from your cash by some rather unscrupulous methods.
We are going to use this to springboard into the big question at hand – why hasn’t your broker recommended Niccolo Gas? Or rather, why do we at Niccolo Gas not work with all brokers?
Hand-Picked by Reputation
Rather selfishly, we only work with brokers with stellar reputations.
This is to save ourselves a headache further down the line, as well as our customers. Although the old adage is ‘lightning never strikes the same spot twice’ – this does not apply when dealing with brokers.
If a broker is known for receiving a tonne of complaints and conducting business badly – we simply won’t entertain working together.
By carefully hand-picking the best brokers to partner with, we ensure our customers have the best possible service – from start to finish.
Commission Capping
A lesser-known secret of the energy broker industry is that broker commissions often make up a huge proportion of your bill. Often these commissions are phrased disingenuously or skipped over quickly – leaving customers paying out vast sums monthly.
At Niccolo Gas, we realised the best way to combat the problem of hidden broker commission was to stop it at the source.
This is why we have placed a maximum of 1p commission uplift onto all of our tariffs. This makes us a much less profitable prospect for brokers looking to make a quick buck.
So, if your broker hasn’t recommended us to you – ask them about the levels of commission they receive from other suppliers. I am sure they would love to tell you.
We Never Pay Upfront
This is to protect ourselves, and our customers.
When brokers sell an energy contract with a broker uplift, they often ask for the money for the entire contract upfront.
We refuse to do this – preferring to safeguard customer interests instead, by only paying after exact billing is calculated for the month. This means our customers are never paying over the odds on commission for the energy they didn’t use.
Broker White Lies
Brokers operate on the basis that they are perceived to have access to information customers don’t.
This is in the form of ‘comparing the entire energy market’ for prices – something no one person could ever conceivably do.
But this isn’t actually the truth, really far from it.
Brokers love to perpetuate the idea that they work with all suppliers as it helps to sell the myth of guaranteeing the best deal to be found at all times. Even if they don’t spread this myth, they certainly benefit from it!
Brokers can and often do only work with several suppliers, which can simply be the ones that allow them the most freedom with the commission.
One thing to remember is that brokers are under no legal obligation to present all of the options or even the cheapest.
Be Aware of Red Flags
We really strongly believe in doing business differently from other gas suppliers in the UK.
From our experience in the industry, we know what needs to change, and how. These small steps are our first steps in ensuring good practice becomes commonplace across the board.
If a broker is not presenting a contract option from a supplier that you know about and are interested in, it is a red flag if nothing else. Although the reasons could be entirely legitimate and are not always the worst-case scenario – is it really worth risking that risk with something as important (and expensive) as your gas supply?
If you get a bad feeling in your gut and feel you are being pushed towards an option that isn’t the best for you, it is often advisable to trust it.
Spotting Red Flags
As we have already covered in this article, there are a few dead giveaways for when you’re potentially dealing with a dodgy broker. Always remember, if in doubt – contact Ofgem or use their online bank of resources.
We have compiled a short list of red flags to spot when dealing with brokers:
- Being hard sold a contract: Brokers are there to advise but never push. If you are being hard sold a contract, the chances are there is a commission incentive.
- Few supplier partners: If a broker doesn’t work with many suppliers, it may be because they have a poor industry reputation or because they only sell high commission contracts.
- Poor reputation: If a broker is known for giving poor customer experience – it is likely they’ll do the same again.
- Verbal Contracts: Bad brokers will often try and tie customers down to contracts over the phone, which are difficult to get out of. If you are being approached over the phone – be incredibly careful about what you agree to!
Contact Niccolo Gas Today
If you are looking for a new gas contract or even a completely new gas supply, then it is simple enough to contact us directly. Unlike some other suppliers, we actually want to talk to you!
We can be reached at all usual UK office hours on 0131 610 8868, or if you would prefer to contact us online then you can use our form or email us at: info@niccolo.co.uk
If you are a broker who shares the same vision for a fairer UK energy industry, then you can find out more about how to partner with us at: www.niccolo.co.uk/brokers
Or, Email us at brokers@niccolo.co.uk.
We look forward to hearing from you!