Energy brokers help businesses secure the most competitive rates by requesting quotes from multiple retail energy suppliers. To ensure your customers receive the lowest possible prices quickly, it’s important to submit pricing requests correctly.
By submitting price requests effectively, brokers can create competition among suppliers, which often results in better rates for your clients. Proper submission also helps the price desk process requests faster, avoiding delays that could impact contract start dates or pricing.
In this guide, we’ll cover the key steps for submitting energy price requests, including the necessary information to include, formatting best practices, and timing considerations to get fast, accurate quotes for your customers.
Essential Information for Submitting a Price Request
Before submitting a price request, make sure you have all the essential information your broker needs. Incomplete requests can slow down the process or damage your relationship with your broker.
A Recent and Complete Bill Copy
Retail energy suppliers require a full, recent bill from your customer to provide accurate pricing. Ensure the bill is clear, complete, and up to date. Bill Copy Checklist:
- Include all bill pages, front and back
- Use a bill no older than 90 days
- Ensure the copy is legible and not blurry
- Obtain a bill copy for each utility account number
- Use mobile scanning apps like Scannable, Genius Scan, or Adobe Scan for convenience
Customer Contact Information
Accurate customer information is crucial, as suppliers often pre-populate contracts when a deal is ready. Include full service addresses and contact details to prevent delays. Contact Info Checklist:
- Customer billing address
- Customer service address(es)
- Decision-maker name
- Decision-maker email and phone number
- Correct legal entity and FEIN
Optional Documents
While not always required, signed authorization documents streamline the process. Obtaining a Letter of Authorization (LOA) or Letter of Exclusivity (LOE) from your customer can help your broker move faster when requesting price quotes.
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LOA’s and LOE’s
Top energy sales professionals and brokers know the importance of obtaining signed authorization letters from their customers when gathering data for a price request. A Letter of Authorization (LOA) is a non-binding document that grants the broker permission to access historical energy usage data and request price quotes from suppliers. Some retail energy suppliers require an LOA before releasing pricing for a customer.
The LOA
- Authorizes the broker to download bill copies from the utility
- Authorizes the broker to obtain historical usage data
- Allows the broker to collect energy price quotes on behalf of the customer
A Letter of Exclusivity (LOE) is a binding agreement between the broker and customer. By signing an LOE, the customer designates the broker as their exclusive representative for obtaining energy supplier quotes. LOEs are often required when another broker is already pricing the customer’s accounts.
The LOE
- Grants the broker exclusive representation rights
- Allows the broker to perform all actions outlined in the LOA
- Gives the broker the first position with suppliers, blocking others from requesting quotes
Learn more about effectively using LOAs and LOE’s to grow your energy broker business.
Load Factor and Usage Data
Advanced energy brokers leverage tools to download historical energy usage data on behalf of their customers. With this information, they can calculate a customer’s load factor rating, which is critical for determining the most effective pricing strategy (learn more about load factor [here]). At Diversegy, our sales partners are equipped with tools to access detailed energy usage data, and our experienced pricing desk evaluates every account to secure the lowest possible pricing.
Using Load Factor to Price
Accounts with high load factors typically qualify for lower price quotes from retail energy suppliers, while accounts with low load factors often receive higher rates. Higher load factor ratings indicate lower wholesale costs for suppliers, which translates to more competitive retail pricing for customers. Understanding a customer’s load factor before submitting a pricing request is essential for obtaining the best quotes.
Matrix vs. Custom Pricing
Many suppliers offer a daily “matrix” rate that can be sold to almost any customer. Calculating load factor helps determine whether a matrix rate or custom pricing is best for your customer. Typically, matrix rates are based on low to average load factors. If your customer has a higher-than-average load factor, obtaining a custom quote through your energy broker is often the most advantageous approach.
Conclusion
Understanding your energy usage and load factor is key to getting the best price. Using a broker and providing accurate data can save money. Even small changes in usage patterns can make a big difference in energy costs. Always share your full bill and historical usage with your broker to get the most accurate pricing.
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FAQs
1. How does past energy use affect pricing for businesses?
Suppliers look at your past energy use to see when and how you use power. This helps them decide the best price for your account. If they know your patterns, they can give you a price that matches your usage instead of a general rate.
2. Why does load factor matter more for big businesses?
Big businesses use more electricity and often have spikes in demand. A high load factor shows steady use. Suppliers like this because it lowers their risk. Steady use can lead to cheaper prices. Small businesses do not have big swings, so load factor matters less.
3. Can a broker help even if my load factor is low?
Yes. Brokers work with many suppliers and can find the best deal. Even with a low load factor, they can get custom quotes, special promotions, or group discounts. This can save money that a single supplier might not offer.