Energy Consultancy for Care Homes: What It Is, How It Works, and What to Watch Out For — Greystones Energy Ltd

Energy Consultancy for Care Homes: What It Is, How It Works, and What to Watch Out For

Most care homes are overpaying for energy — not because of inefficiency, but because of how their contracts were procured. Renewing with the same supplier, accepting a broker's first offer, or rolling over automatically at the end of a fixed term are among the most common and costly mistakes in care home energy management.

An independent energy broker can change that. But the brokering market is unregulated, and not all brokers operate in the same way. This guide explains how energy brokering works, what the difference between an independent and a tied broker is, and what questions to ask before you sign anything.

An energy broker acts as an intermediary between your care home and energy suppliers. Rather than approaching suppliers directly — which is time-consuming and rarely produces the best result — you authorise a broker to go to market on your behalf, obtain quotations from multiple suppliers, and present you with options.

A good broker will:

• Analyse your current contracts, consumption data, and meter point reference numbers (MPRNs and MPANs)
• Identify any auto-rollover risks or unfavourable contract terms
• Tender your requirements to a panel of suppliers
• Negotiate rates and contract terms on your behalf
• Manage the switching process and handle any supplier correspondence
• Provide ongoing contract management and renewal support

For a care home operator, this removes a significant administrative burden and — if the broker is genuinely independent — typically produces materially better contract terms than a direct renewal.

Not all energy brokers are the same, and the distinction matters enormously.

Tied or panel brokers have commercial relationships with a limited number of suppliers. They may receive higher commissions from certain suppliers, which can influence the recommendations they make — even if they present themselves as impartial. Some tied brokers are effectively sales channels for specific suppliers.

Independent brokers have no preferential commercial relationship with any supplier. They go to the whole market, or as close to it as possible, and their only obligation is to you. Their recommendations are driven by what is best for your care home, not by which supplier pays the highest commission.

When engaging a broker, always ask: how many suppliers are on your panel, and do you have any commercial arrangements with any of them that could influence your recommendations?

Energy brokers are typically remunerated through a commission embedded in the unit rate of your energy contract. This means the supplier pays the broker a small uplift per kilowatt-hour over the life of the contract, and that uplift is built into the rate you pay.

This is a legitimate and widely used model. But it creates an obvious potential conflict of interest: a broker who earns more from one supplier than another has a financial incentive to steer you towards that supplier, regardless of whether it is the best deal for you.

Under Ofgem's guidance and general consumer protection principles, brokers should:

• Disclose that they receive a commission
• Disclose the basis of that commission (per unit, fixed fee, or percentage)
• Disclose the amount, or a reasonable estimate of it, before you sign a contract
• Not allow commission arrangements to influence their recommendations to your detriment

If a broker is unwilling to disclose how they are paid, or becomes evasive when you ask, treat that as a significant warning sign.

At Greystones Energy, we disclose our commission basis and amount to every client before they enter into a contract. You are entitled to ask us for full details at any time.

One of the most common and costly issues in care home energy procurement is the auto-rollover — also known as an evergreen clause or deemed contract.

Most fixed-term energy contracts include a clause that automatically renews the contract for a further fixed term if you do not give notice to switch within a specified window — typically 30 to 90 days before the contract end date. If you miss that window, you can find yourself locked into a further one or two-year contract at rates that may be significantly above market.

For a care home spending £100,000 per year on energy, being locked into an above-market contract for 12 months can easily cost £15,000–£25,000 more than necessary.

A good energy broker will:

• Review all your existing contracts and identify renewal windows
• Set up a contract management calendar with advance alerts
• Ensure you are never caught by an auto-rollover without a conscious decision to renew

A well-run energy brokering engagement typically follows these stages:

1. Data gathering and contract review Your broker will ask for copies of your current energy bills, your existing contracts, and a letter of authority (LOA) authorising them to act on your behalf with suppliers. They will analyse your half-hourly consumption data if available.

2. Market tender Your broker goes to market with your requirements — site details, consumption profile, contract start date, and preferred term length. They obtain quotations from multiple suppliers.

3. Presentation and recommendation Your broker presents the options clearly, with a recommendation and the reasoning behind it. They should be able to explain the difference between fixed and flexible contracts, and advise on contract length given current market conditions.

4. Contract execution Once you have chosen a supplier and contract, your broker manages the paperwork and switching process. For gas and electricity, switching typically takes 28 days.

5. Ongoing management A good broker does not disappear after the contract is signed. They should monitor your account, flag any billing anomalies, and begin the renewal process well in advance of your contract end date.

Most care homes procure energy on fixed-price contracts, where the unit rate is locked for the duration of the term. This provides budget certainty, which is important for care home operators managing tight margins.

Flexible or structured contracts — where you purchase energy in tranches at different points in the market — can produce better outcomes when managed well, but they require active management and carry more risk. They are generally more appropriate for larger care home groups with dedicated finance or procurement resource.

For most single-site and small-group operators, a well-negotiated fixed-price contract remains the right approach.

Before engaging a broker, ask the following:

• Are you independent, or do you have commercial relationships with specific suppliers?
• How many suppliers are on your panel?
• How are you remunerated, and will you disclose the commission amount before I sign?
• What is your process for managing contract renewals and avoiding auto-rollovers?
• Do you provide ongoing contract management, or just the initial procurement?
• Can you provide references from other care home clients?
• What happens if I have a billing dispute with a supplier — will you assist?

A reputable broker will answer all of these questions clearly and without hesitation.

We are an independent energy broker with no commercial relationships with any supplier that could influence our recommendations. We go to the whole market on your behalf, disclose our commission fully before you sign, and provide ongoing contract management as standard.

We work exclusively with care home operators, which means we understand the specific challenges of procuring energy for a 24/7 operation with complex consumption profiles, multiple meters, and tight budget constraints.

If you would like to understand what better energy contracts could mean for your care home, a free initial review costs nothing and commits you to nothing.

Get a free energy review