Energy brokerage firms play a crucial role in deregulated energy markets. Discover how they operate and how both businesses and brokers can benefit from partnering with them.
About Energy Brokerage Companies
Energy brokerage firms play a key role in deregulated states. If your business is located in such a state, working with a brokerage firm can help you negotiate electricity or natural gas supply contracts more effectively. In this article, we’ll cover what energy brokerage firms are, how they operate in deregulated markets, and what to consider when hiring one.
What Is an Energy Brokerage Firm?
First, it’s important to understand the difference between regulated and deregulated energy markets. In regulated markets, customers must buy energy from their local utility. In a deregulated market, however, customers can purchase energy from third-party suppliers.
In these markets, electricity and natural gas suppliers buy energy from wholesale markets and resell it to consumers in the retail market. With so many suppliers and rate options, shopping for energy can be challenging. This is where energy brokers come in.
Energy brokers and brokerage firms help customers purchase electricity or natural gas. Unlike suppliers, they don’t buy energy from wholesale markets themselves. Instead, they negotiate with suppliers to secure the best rates for their clients. Brokers earn a commission when customers sign contracts with suppliers.
Energy brokers come in different types. Some are large national firms with employees across the country, while others are smaller teams or individual agents. Understanding these differences is essential when selecting the right energy brokerage firm for your business.
How Do Energy Brokerage Firms Work?
Energy brokers and energy brokerage firms help customers find the very best energy supply deals in the market. There are many benefits to hiring an energy broker for your business. Because energy brokers have extensive experience and knowledge of the energy markets, they can help customers determine what is best for them.
In most markets, energy brokerage firms are aligned with many different retail suppliers. This allows energy brokers to find rate offers that may not be publicly available or advertised. Energy brokerage companies also provide value through advice and guidance. Because brokers understand energy prices, suppliers, and contract terms, they help customers make informed decisions about their energy supply.
Energy brokerage firms generally operate by employing salespeople or other energy professionals to acquire customers. A brokerage firm is usually organized into two departments: sales and operations. The sales department includes referral partners, salaried salespeople, sub-brokers, and energy sales agents, all focused on finding new customers. The operations team usually consists of pricing desk personnel who obtain quotes from suppliers and customer service staff who ensure customer issues are resolved.
Why Partner With an Energy Brokerage Firm?
If you are a customer in a deregulated state, there are many reasons to work with an energy brokerage firm. Commercial & Residential energy customers who use brokers often pay less for electricity and natural gas compared to those who do not use a broker’s services. Here are some of the top reasons to consider partnering with an energy broker:
Low-Cost Electricity
Energy brokers excel at finding the best deals in the market. Since selling electricity is their core business, they know current rates, when prices change, and how to locate low-cost energy providers. Customers, focused on running their business, usually don’t have the time to become energy market experts.
Energy Contract Renewals
Another key benefit of working with an energy brokerage firm is that they manage your contract renewals and help you find better opportunities. Running a business is challenging, and tracking utility contract end dates is likely the last thing on your mind. A skilled energy broker keeps track of your retail energy contract start and end dates so you can renew on time and shop for a new electricity provider.
Customer Service Issues
Occasionally, issues may arise with your utility accounts. Perhaps you moved to a new location or changed your business name. These changes can affect your accounts with the utility company and create problems. A reliable energy brokerage firm can handle the paperwork, contact the utility company, and assist with other energy-related issues.
Key Services Provided
- Price Comparison: Identifying the best gas and electricity rates from multiple suppliers.
- Time Savings: Handling the full process of finding and switching suppliers saves you time and effort.
- Market Expertise: Offering impartial advice and insight into the complexities of the energy market.
- Contract Renewal Management: Monitoring your contracts and assisting with renewals to ensure ongoing savings.
- Cost Reduction: Helping you reduce expenses through improved procurement and contract management.
- Renewable Energy Options: Supporting the selection and integration of green energy solutions into your energy plan.
Are You Looking for an Energy Brokerage Firm?
Whether you are a commercial or residential customer seeking a trusted energy brokerage firm or an entrepreneur interested in becoming an energy broker, we can help! Great Energy1 is one of the nation’s leading energy brokerage firms, providing electricity and natural gas services across all deregulated states. We can help you find lower-cost energy for your business. Contact our experts today to learn more about energy brokers and how they operate.