Energy Brokers: Everything You Need to Know

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Energy Procurement & Management

What is an Energy Broker?

Energy brokers are intermediaries between energy suppliers and their clients. Brokers do not own or distribute energy and they are not allowed to sell energy directly to you. They simply present the rates of a wholesaler, or supplier. Similar to the relationship of a real estate agent and the home or commercial property they help you find. 

Commercial Energy Broker vs Residential Energy Brokers

Commercial energy brokers service businesses while residential brokers serve homes. While most energy brokerage firms focus on businesses, some also offer home brokerage services. 

What Do Energy Brokers Do?

Commercial energy brokers service businesses while residential brokers serve homes. While most energy brokerage firms focus on businesses, some also offer home brokerage services. 

Energy Brokers vs Energy Consultants

Brokers serve as the middleman between you and an energy supplier when you're shopping for an energy rate. Energy consultants, on the other hand, serve as a guide to managing your energy usage. They help with reducing energy usage, managing demand for businesses using a huge amount of energy, and other similar services. 

Many times energy brokers will offer consulting services as a part of their service offering. While managing your energy usage and spend is important for any business owner your average small to medium-size business is too small for most energy consultants to work with. 

Who needs an Energy Broker?

While anyone can use a broker, generally an energy broker is only necessary if you are a business that has large energy usage ex: $20,000+/mo electric bill. If your energy bill is less than that you can use our online supplier comparison to find the right energy plan for you without the steep fees an energy broker charges.

Is EnergyBot an Energy Broker?

In terms of licensing requirements, yes. EnergyBot holds broker licenses in almost all deregulated states, but our strategy is different than your run of the mill energy broker. 

Rather than trying to hard-sell our customers into expensive rates, we hired a team of software engineers to create a simple experience that allows you to compare commercial electricity rates online. 

You skip the back and forth with a salesperson and more importantly get the lowest electric rate possible for your business. 

How to Become an Energy Broker 

Most deregulated energy states require brokers to apply for a license or certification. License and registration requirements vary by state, but generally, you can expect to fill out a few forms and submit some sort of registration fee. You are not required to have a special degree or certification, but some states do ask you to demonstrate industry knowledge.

You can find more information on becoming an energy broker in your state by visiting your local organization that manages the utilities, usually the Public Utility Commission (PUC).  

Here is a list of PUC websites for states with deregulated natural gas or electricity:

  1. California
  2. Connecticut
  3. District of Columbia
  4. Delaware
  5. Illinois
  6. Massachusetts
  7. Maryland
  8. Maine
  9. Michigan
  10. Montana
  11. New Hampshire
  12. New Jersey
  13. New York
  14. Ohio
  15. Pennsylvania
  16. Rhode Island
  17. Texas
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