Photocentric Daily Blog Banner

Provide Your Customers With The Right Product And Ensure You Get Paid Properly With Sparkplug

As an energy broker, your responsibilities always include looking out for the customer’s best interest – but you should not have to sacrifice your revenue in the process! For larger customers, your responsibilities are often more challenging since they have more complex energy demands. If your energy platform can’t support the complex products these customer demand, what happens next? You might lose the deal to another broker who CAN do these things, or you might end up selling them a simpler product that does not meet their needs. Neither option is good for the broker, the customer, or the energy market. 

 

Energy brokers need a platform that ensures that the right product can be offered to their customers and ensure that they can manage the deal properly throughout its lifetime. And of course, this includes ensuring the broker is properly compensated by the supplier. 

At the core of providing energy expertise and consulting is pairing a customer’s energy needs with the right energy product. There are a lot of different customers and many different energy products.  

FULLY FIXED
Since 85% of all energy products sold are fully fixed, most brokers and customers are very familiar with fully fixed products. They allow for locking in a set price for the duration of the contract. If energy costs drop across the contract term, the customer ends up paying more for their energy. If energy prices rise, then the customer is very happy for locking in the low rate. Fixed products help customers effectively predict their energy costs and eliminate energy market volatility.
FULLY INDEXED
At the other end of the spectrum is a fully indexed product that has the customer always paying current market rates. Not only is this a model that is very difficult to predict (making energy budgets difficult to forecast), it contains a considerable amount of risk.
BLOCK & INDEX
Somewhere between these two extremes is the Block & Index product which combines fixed-price protection and variable price flexibility. The customer can purchase a portion (or “block”) of their forecasted energy demands while purchasing the remainder at the current market (or “index” rate) when rates dip. Blocks can even be “layered”, representing multiple purchases of fully fixed energy while keeping the remainder of the load at risk through an index product. Over the years, suppliers have made managing these types of products easier which is why there is an upward trend for Block & Index products by larger customers.
Previous
Next
 

Energy brokers that can support their customers by offering complex products that have a significant competitive advantageHowever, the broker needs to be able to manage and track all of the complexities that come along with advanced products such as layering blocks (each with varying sizes and applied margin) – which is a challenge for many broker solutions on the market. 

That's Why We've Come Up With Your Solution

Sparkplug is the most advanced broker platform on the market and manages complex products with varying sizes and variable applied margins. Sparkplug supports all of the key elements necessary to support complex products including: 

  • Manage different margins for all product components  
  • Reconcile supplier commission payments 
  • Track index portions 
  • Track blocks (including layered blocks) 
  • Reconcile expected vs actual usage 
  • Report at risk hedge positions for each customer and overall book

Hear More From Companies Like Yours

Ready To Revolutionize Your Business?

Let us know who you are, and we'll contact you to setup a demo!

Share:

X