Commercial energy brokers work with all types of businesses and governmental facilities. From restaurants and retail stores to large manufacturing facilities, commercial energy brokers negotiate the supply of electricity and natural gas for these entities in deregulated markets. Learn more about commercial brokers below.
What Commercial Brokers Do.
Commercial energy brokers earn a living by selling electricity and/or natural gas to commercial entities located in deregulated states. In these utilities, businesses have the option to purchase their energy supply from a third-party supplier, other than their local utility company. Commercial brokers have relationships with energy suppliers and find more favorable energy prices for their customers. By helping their customers to enter into contracts with suppliers, they earn a sales commission for doing so. Many times, these commissions are paid for the lifetime of the customer’s contract and are compensated based on the customer’s energy consumption volumes.
Key Benefits For Business Customers.
There are many benefits to using an energy broker for commercial customers. When you are running a business, you have many things to focus on and your utility bill might be the last thing on your mind. In fact, if you are located in a recently deregulated state, then you might be used to simply purchasing energy from your local utility. Tracking commodity prices and negotiating deals with energy suppliers might be a foreign concept to you. In addition to finding you the best energy rates, commercial brokers bring value to customers by:
Gathering quotes from multiple energy suppliers.
Evaluating customer energy usage to find the best-fit supply product
Monitoring the market for future contract price opportunities
Requirements To Become An Energy Broker.
There are different ways to enter the market and become an energy broker. Most people start out by aligning themselves with a larger brokerage company and by acting as a sales agent. These people benefit from the size and influence of their broker and simply make a living by acquiring new customer accounts. Their broker helps them with pricing, market analysis, supplier contract negotiation, and customer renewals.
Others who wish to obtain their own broker licensing must go through a grueling vetting process. Many states require licenses from energy brokers, and each state has its own energy broker licensing process. After a new broker proves his or her financial strength and market knowledge, they can receive a license. They then must obtain relationships with the leading energy suppliers in order to offer pricing to their customers. This process alone can be daunting since most suppliers only want to work with more established brokers. With that said, there are many pros to becoming an energy broker.