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FAQs
What is an energy broker?
An energy broker is an independent intermediary that connects electricity and natural gas consumers with retail energy suppliers. We operate in deregulated energy markets helping commercial, industrial, and residential customers shop, find, compare multiple retail providers to secure competitive energy rates and contract terms. Not owning, generating, or distributing energy ourselves, we instead act as specialized consultants navigating the complex utility market on the customer’s behalf.
Why would someone need an energy broker?
An energy broker has a direct relationship with each retail provider through the brokerage and, as a result, has the ability to access plans and rates not available on a retail provider’s company website. Much like an insurance broker shops for the best policy, an energy broker saves significant time and operational effort.
How much does it cost to use an energy broker?
The energy broker is paid through either indirect commissions or through direct fees paid by the customer’s selected retail provider.
How does an energy broker help residents and companies lower their energy costs?
An energy broker is trained to properly read utility bills determining the average or true rate charged, comparing that rate with current available rates, and locking in that rate even if the customer is in the midst of a contract with another retail provider. Brokers also leverage industry expertise, market data, and relationships with multiple providers to optimize how a company buys and consumes power.
What is the difference between fixed-rate and variable-rate energy contracts?
The main difference is that a variable-rate contract changes in price per kilowatt-hour (kWh) month-to-month fluctuating up or down during the course of the contract term based on wholesale energy market conditions, while a fixed-rate contract locks in your price per kWh for a set term.
What happens when an energy contract is nearing its expiration date?
Typically, customers will automatically transition to a variable rate or renew services unless they actively choose a new plan. The current provider is legally required to send a contract expiration notice (typically 30 to 60 days in advance) outlining their upcoming options and deadline. Residential customers can lock in an energy rate typically 30 to 90 days in advance of the desired service start date. For commercial and business accounts, rates can be locked in 6 months to 2 years ahead of time.
Does an energy broker keep track of volatile energy market trends?
Yes, most energy brokers receive daily updates via email concerning energy market trends, changes, and projections. These reports help brokers use real-time data feeds, predictive analytics, and regional grid monitoring systems to mitigate price risks for clients.
What information do you need from a client to provide a quote?
For residential service, a broker only needs the customer’s service address and contact information. For commercial service, a broker only needs the company’s recent bill copy and contact information. Once the broker has the required information, a quote is usually generated within 10 to 30 minutes for residential customers and small businesses, 1 to 2 business days for medium commercial accounts, and 3 to 7 business days for large industrial accounts.
