Energy Advisors – The Definitive Guide to Selection
Energy Advisors – The Definitive Guide to Selection
Energy Advisors – Before you hire one, this guide will help you avoid costly mistakes when selecting and contracting a partner.
Energy Advisors - Guide to Selection
Energy Advisors or Consultants are everywhere and companies have thousands to chose from, so how do you tell the good, from the bad and the just plain ugly? In this definitive guide, we provide no-holds-barred advice on selecting a strong partner for your business and how to avoid costly contract mistakes.
In writing this guide, Vervantis makes the assumption that you have already found a shortlist of energy advisors who have the experience, skills, technology, coverage and service levels that your company is looking for, but perhaps you are not quite sure how best to make the final selection and protect yourself from bad practice.
Ask yourself these seven questions:
- Do I know how much commission energy suppliers will pay the advisor?
- Will the energy advisor warrant that this is all the compensation they receive from the energy supplier and that no costs will be inflated or adjusted to give a pseudo commission?
- Will the energy advisor use their power with suppliers to stop them speaking to me directly?
- Can I still speak directly to my energy suppliers without the advisor there?
- Does the agreement with the energy advisor have a notice period where I am restricted from talking to other energy advisors or suppliers?
- When operating a wholesale priced flexible contract (i.e block & Index), does the advisor ensure I get the true market price without any commission?
- Does the agreement with the energy advisor restrict me from sharing data with other parties? It’s your data, make sure you are free to access and use it as you wish.
Once you have reflected on the services and done the checks above, its time to change the status quo. Even if you like the advisor and want to work with them, you do need to improve the level of transparency as it is good corporate governance.
When negotiating your advisor agreement, ask for the following provisions to be inserted:
- The Energy Advisor shall warrant that all tender analysis shall transparently show how much money is being paid by Suppliers to the Advisor
- The Energy Advisor shall warrant that this information shall be provided for all quotations received
- The Energy Advisor shall warrant that no other money is being received from the Supplier
- The Energy Advisor shall warrant that in the event that money is received from a Supplier for any other purpose, this payment which could create a conflict of interest is revealed to me.
- The Energy Advisor shall warrant not to restrict me from speaking to any other Energy Advisors for the life of my agreement
- The Energy Advisor shall warrant not to restrict suppliers from speaking to me for the life of my agreement
- The Energy Advisor, when entering into price locking and/or unlocking transactions shall warrant to make them at the market price without deduction or fee
- The Energy Advisor shall warrant not take a fee for entering into price locking and/or unlocking transactions which might create an incentive to increase the number of transactions that my company makes.
- The Energy Advisor shall provide transparent access to all conversations and correspondence with all third parties relating to my energy supply.
- The Energy Advisor shall provide transparent access to any and all data relating to my energy supply even when the contract is terminating
Finally, to avoid getting caught out, it may make sense to serve any termination notices straight away so that your ability to change advisor or supplier is not unfairly restricted sometime in the future.
Vervantis is a leading supplier of outsourced, on-demand energy & sustainability expertise.
This guide was created to help organizations avoid costly mistakes as a result of poor energy advisors behavior and agreements that we have witnessed over the last 25 years.
It is in no way an exhaustive list, but as an industry leader, Vervantis confirms it abides by the principles contained in this guide and if there are other areas which organizations feel should be included, we would be happy to consider them as well.
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