Name: Energy Broker Fees
Brand: Diversegy

Key Overview:

Energy broker fees are the commissions brokers earn for facilitating energy supply contracts between commercial customers and retail energy suppliers. In most cases, the broker’s fee is embedded in the supplier’s rate and is not charged separately to the customer, meaning businesses pay nothing out of pocket for broker services.
Broker margins are typically expressed as a per-unit adder: $0.001 to $0.005 per kWh for electricity (1 to 5 mils), or $0.01 to $0.10 per therm for natural gas. On a commercial account consuming 500,000 kWh annually with a 3-mil margin, the broker earns approximately $1,500 per year in residual commissions from that single account.
Two primary commission structures exist: residual commissions (paid monthly for the life of the contract, creating predictable recurring income) and upfront commissions (a lump sum paid at contract signing, typically at a discounted rate compared to the total residual value). Some brokerages offer a hybrid of both.
Customers should ask their broker to disclose their margin structure. Reputable brokers are transparent about how they are compensated. Red flags include brokers who refuse to disclose margins, charge separate consulting fees on top of supplier commissions, or recommend higher-cost plans to maximize their own earnings.
Diversegy offers transparent commission structures to its broker partners with access to both residual and upfront commission options, competitive margin allowances, and no hidden platform fees.

Energy Broker Fees.

Energy brokers earn sales commissions from selling electricity and natural gas by adding broker fees or margins to retail energy supplier rates. In order to understand this, one must understand how energy brokers work with energy suppliers. In deregulated energy markets, retail energy suppliers offer rates to energy brokers for their customers with the energy supplier’s margin already built-in. The broker, in turn, adds a broker fee to that rate and then offers the total price to the customer. An example of how this works is below:

Retail Energy Supplier Rate = $0.060/kWh
Energy Broker Fee = $0.005/kWh
Total Customer Price = $0.065/kWh

Energy brokers are then compensated by energy suppliers for selling electricity or natural gas contracts to their customers. Broker commissions are determined by the total Broker Fees x Customer Energy Consumption. An example of how this works is outlined below:

Month	Electricity Usage (kWh)	Broker Fee ($/kWh)	Broker Commissions ($)
JAN	24,000	$0.005	$120
FEB	27,000	$0.005	$135
MAR	12,000	$0.005	$60
APR	13,000	$0.005	$65
MAY	17,000	$0.005	$85
JUN	21,000	$0.005	$105
JUL	30,000	$0.005	$150
AUG	25,000	$0.005	$125
SEPT	16,000	$0.005	$80
OCT	15,000	$0.005	$75
NOV	20,000	$0.005	$100
DEC	21,000	$0.005	$105

Energy Broker Commission Calculator.

Making a sales plan for your energy broker business is critical to your success. Use this energy broker commission calculator to forecast your energy sales commissions based on key performance indicators. Use this calculator by…

Predict how many contracts or deals you will sell each month.
Estimate the average annual deal size in MegaWatt Hours (MWh). One thousand kWh equals one MWh.
Project your average broker fee for each deal.
Enter your commission rate (%).
See your potential energy broker income.

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