Energy Broker - Description

Energy Broker Job Description

Energy brokers work with industrial, commercial, and municipal customers in deregulated states to aid them in negotiating the purchase of electricity or natural gas supply.

Brokers act as liaisons between competitive retail energy suppliers and the end users that are consuming energy. There are many energy supply products available to commercial and industrial customers in deregulated states, and sometimes those various products are complex and hard to understand.Energy brokers and consultants also act as professional advisors to their customers helping them decipher supply structures and contract terms so they can make the best decision for their business.

Ultimately, an energy broker is responsible for helping his/her customers save money on their utility-related costs by negotiating lower-cost energy supply on the customer’s behalf.

From a customer’s perspective, energy brokers provide value in many ways. Having to obtain price quotes from over 60 energy suppliers can be a daunting task for most customers. Contacting multiple suppliers, submitting billing data, and comparing quotes can be cumbersome and tedious. An energy broker alleviates the administrative burden of collecting price quotes while also providing professional advice. In addition, energy brokers have deep-rooted relationships with energy suppliers and quite often can obtain more competitive pricing for a customer.

What Do Energy Brokers Do?

Commercial energy brokers engage in procuring energy supply for their electricity and natural gas customers. Energy brokers have agreements with multiple Energy Suppliers and offer price quotes from many suppliers to their commercial customers. In addition to procuring energy supply, there are many other things energy brokers do to bring value to their customers:

Contract Language

Professional energy brokers understand the legal energy contract language in retail energy contracts they offer to their customers. Energy supply rates can get complex with many different product offerings and conditions. Energy brokers help their customers understand things like capacity charges, bandwidth clauses, transmission charges, Kilowatt-Hours (kWh), pass-through charges, and more. Without an energy broker in their corner, customers would be forced to understand the details of the energy supply agreement themselves.

Supplier Vetting

All retail energy suppliers are not made equal. Some energy suppliers are very large, publicly-traded companies that own energy generation stations and have billions of dollars in revenue. Other suppliers are five employees in an office above an old mechanics shop (no kidding!). Helping their customers understand the prowess of the supplier and deciphering whether the supplier has the financial wherewithal to honor a fixed-price agreement is a true value energy brokers deliver. Customers get enticed by very low fixed-rate offerings by “fly-by-night” energy suppliers and are later disappointed when the supplier passes through other costs on their electric bill. Energy brokers can help their customers choose reputable suppliers and avoid energy scams.

Customer Service

Another thing energy brokers do on a regular basis is to offer customer service to their commercial customers. Utility issues and problems with energy suppliers are rare, but when they occur, the energy broker is available to help guide the customer through the problem. Whether it is a billing error or a billing question, energy brokers can help rectify the situation due to their direct lines of communication with energy suppliers.

Why Do Businesses Use An Energy Broker?

There are many advantages to using an energy broker for purchasing electricity or natural gas in a deregulated market. Most of the value a broker can deliver has to do with procuring low-cost energy for savings. After all, that’s the bottom line right? Energy brokers understand commodity markets and have supplier relationships to secure a low rate for your business that can save you on your utility costs. Furthermore, energy brokers understand how commodity markets trade and can continually monitor future prices to offer savings contract over contract.

In addition to price savings, having a reputable energy broker in your corner makes your job easier.

When you have a utility billing issue, question, or you’re ready to shop for a new rate, simply calling your broker makes things convenient and simple. Companies that do not use energy brokers are forced to take these tasks on internally.

If you are thinking about working with a broker, here are some tips on how to choose an energy broker for your business. Here are some advantages to working with a broker:

Energy Usage Evaluation

Did you know that you can qualify for lower energy supply rates based on your business’s energy usage patterns? An experienced energy broker will be able to evaluate your energy load profile and match you with the best supplier and price structure for savings. Without an understanding of load factor, energy usage, or peak demand, it can be challenging to find the best energy plans for your business or organization.

Market Guidance

Shopping for energy in a deregulated market is more than just finding the best rate for your business. It’s also knowing when to start shopping for a renewal rate. As a commercial enterprise, you can lock-in energy rates for the future when the market is low. An experienced energy broker can help you understand energy market prices and conditions, and can help you renew your energy contract at the right time.

Contract Negotiation

Energy brokers can also help you negotiate with energy suppliers for the best contract terms. Not all energy supply contracts are equal. Some have specific contract language that can be detrimental to your business if you are not careful. A knowledgeable energy broker will help you to understand the details of your contract and can even fight to help you get favorable terms with a supplier.

Utility Bill Audits

Errors on commercial utility bills are quite common. But, knowing when and if you are overpaying can be challenging if you are not familiar with utility tariffs and billing calculations. Some energy brokers offer utility bill auditing services to identify billing errors, correct mistakes, and even lobby for refunds.

Expert Advice

Commercial energy bills are complex, and understanding the anatomy of an energy bill can be a real challenge for most business owners. An energy broker can help you understand your energy bill, how it is calculated, and the best ways to reduce your energy expenses. Brokers can also answer your energy-related questions so you can better manage your budget.These are some of the additional benefits you will get from using an energy broker:

Becoming An Energy Broker.

So you’re interested in becoming an energy broker?

Great news! You’ve picked an exciting industry with lots of potential to have a very rewarding career.

Some Choose To Start As An Agent:

One way of entering the energy broker world is to start as an energy sales agent. Energy agents are individuals who act as energy brokers but do not need to go through the rigorous licensing process. In fact, energy agents can align with a licensed energy brokers and can sell energy under that broker’s license. Becoming an agent is quite simple and your broker will train you on everything you need to know to be successful.

Become Choosy Power Broker or Channel Partner:

There are many benefits to structuring your energy broker business this way including:

Avoid rigorous regulatory compliance

Get overnight access to deregulated markets with no licensing

Sell for multiple energy suppliers without having to pass application processes

Get better payment terms with upfront commissions to improve cash flow

Gain access to support staff without having to hire employees