About Energy Brokerage Companies
Energy brokerage firms play an important role in deregulated states. In fact, if you own a business in a deregulated state, you can benefit from working with a brokerage firm when negotiating your electricity or natural gas supply contract. In this article, we will discuss energy brokerage firms, their role in deregulated energy markets, how they operate, and what to look for when hiring an energy brokerage company.
What Is An Energy Brokerage Firm?
First, it is important to understand the difference between regulated and deregulated energy markets. In regulated markets, customers must purchase energy from their local utilities. In a deregulated energy market, however, customers have the opportunity to purchase energy from a third-party energy supplier.
In these markets, electricity suppliers and natural gas suppliers purchase energy from the wholesale electricity markets and resell it to consumers in the retail market. With so many energy suppliers and rate offers to choose from, it can be difficult to shop for energy. Enter the energy broker…
Energy brokers and energy brokerage firms are organizations that exist to sell electricity or natural gas to their customers. Brokerage firms, unlike suppliers, do not purchase energy in the wholesale market. Rather, energy brokers negotiate with suppliers to find the best energy rates for their customers. When their customers sign contracts with suppliers, they then earn a sales commission.
There are various types of energy brokers in the market, too. Some energy firms are large national organizations that have employees all over the country. Other energy brokers are single agents or small direct sales teams. Learning the differences between these types of energy brokerage firms is also critical when choosing an energy broker.
How Do Energy Brokerage Firms Work?
Energy brokers and energy brokerage firms help customers to find the very best energy supply deals in the market. In fact, there are many perks to hiring an energy broker for your business. Because energy brokers have extensive experience and knowledge of the energy markets, they can help their customers decipher what is best for them.
In most markets, energy brokerage firms are aligned with many different retail suppliers. So, energy brokers can even find rate offers that might not be available or advertised to the public. Energy brokerage companies also bring value to their customers through advice and guidance. Because brokers have so much knowledge of energy prices, suppliers, and contract terms, they can help their customers to make educated decisions about their energy supply.
Energy brokerage firms usually work by employing salespeople or other energy professionals to acquire customers. A brokerage firm is usually structured into two departments: sales and operations. The sales department is comprised of referral partners, salaried salespeople, sub-brokers, and energy sales agents whose sole purpose is to find new customers. The operations team usually consists of pricing desk personnel who obtain price quotes from suppliers and customer service people that make sure any customer issues are resolved.
Why Partner With An Energy Brokerage Firm
As a customer in a deregulated state, there are many reasons to partner with an energy brokerage firm. In fact, commercial energy customers that have brokerage firms, often pay less for electricity and/or natural gas when compared to those not utilizing a broker’s services. Here are some of the top reason why you should consider partnering with an energy broker:
Energy brokers are the best at finding deals in the market. Because selling electricity is their main business, they know exactly what is going on, who has the lowest rates, when prices are changing, and what to do to find low-cost energy providers. Customers are focused on running their business and do not have the time to be energy market experts.
Energy Contract Renewals
Another main benefit of using an energy brokerage firm’s services is that they will organize your contract renewals and help you to find better opportunities in the future. Running a business is quite hard, and tracking the end dates of your utility contracts is probably the last thing on your mind. A good energy broker will note your retail energy contract start and end dates so that you can renew at the right time and shop for a new electricity provider.
Customer Service Issues
From time to time, certain issues may arise with your utility accounts. Maybe you moved to a new location or changed your business name. These things can affect your accounts with the utility company and create issues. A good energy brokerage firm can handle the paperwork of changing your utility accounts, contacting the utility company, or assisting you with other energy-related issues.
Are You Looking For An Energy Broker Firm? Maybe You Are Considering Becoming An Energy Broker?
Whether you are a commercial customer looking for a reputable energy brokerage firm, or an entrepreneur thinking about becoming an energy broker, we can help! Diversegy is one of the nation’s top energy brokerage firms, offering electricity and natural gas services in all deregulated energy states. In fact, not only can we help you find lower cost energy for your business, we also have a professional energy partner program for those looking to get into the energy broker industry. Contact one of our experts today to learn more about energy brokerages and how they work.