Deregulated energy markets can be messy. Comparing suppliers, contracts, and risks takes time most business owners don’t have. That’s where energy brokers and consultants come in. Think of them as your outsourced energy department — they shop, negotiate, and manage contracts so you don’t have to.
What a Broker Can Do for You
- Shop the market – Gather quotes from multiple suppliers and compare them side by side.
- Negotiate terms – Use industry knowledge to get better rates and contract language.
- Explain contracts – Point out hidden clauses (like auto-renewals or penalties) you might miss.
- Track your usage – Look at your data and suggest the right type of deal.
- Keep you on schedule – Remind you before contracts expire so you don’t roll onto expensive default rates.
- Audit bills – Catch supplier or utility errors and push for corrections.
- Advise on risk & renewables – Help decide how much to fix vs. float, and guide you on green energy options.
How Brokers Get Paid
Most brokers are paid by the supplier through a small fee built into your rate (for example, 0.2¢/kWh). Some work on a flat fee or retainer. Neither model is bad — but transparency matters. Always ask: “How are you getting paid?” If they won’t tell you, that’s a red flag.
How to Choose the Right Broker
Look for:
- Experience – Do they know your region and business type?
- Transparency – Will they show you the actual supplier contract?
- Multiple options – Do they bring you more than one quote?
- References – Can they point to similar businesses they’ve helped?
- Ongoing support – Not just signing the deal, but monitoring and advising afterward.
Red flags:
- Pressure to sign without time to review.
- Only ever showing one supplier’s deal.
- Vague about fees or contract terms.
Do You Need One?
If your energy spend is small and your needs are simple, you may manage fine alone. But many mid-sized companies find brokers pay for themselves — by saving time, avoiding bad contracts, and often getting slightly better prices.
👉 Bottom line: A good broker can save you money and stress, but only if they’re transparent and truly working in your best interest. Always ask how they’re paid, demand visibility into contracts, and treat them as a partner — not just a salesperson.
Next: Sustainability in Energy Procurement – how to meet cost and green goals at the same time →