A1 Energy

What An Energy Broker Is And Why You Should Use One

12.20.20 12:41 PM By Jon
Energy broker reviewing energy contracts
Energy brokers are individuals or companies that act as intermediaries between energy consumers and providers. Their job is to secure the best possible rates for their clients, which can be a great solution for those looking to reduce their energy costs by optimizing their energy procurement contracts.

What is An Energy Broker

​​First Off, What is Energy Procurement?

Energy procurement is the process by which a business purchases different energy products . Energy procurement involves comparing the costs and benefits of different contract types, such as fixed priced or variable, as well as contract length.


Unfortunately, most businesses never truly consider their energy options because they only consider their needs in the present. But successful energy procurement means thinking strategically about how your energy needs will change over time.

​​What Is An Energy Broker?

Energy brokers are experts in the energy industry. They spend their time reviewing clients historical energy usage and researching new trends, technologies and policies within the industry. These professionals use their knowledge to help businesses make informed decisions about getting them into optimized energy contracts. Energy brokers work with business's looking for ways to save money on their utility bills or to get the right energy plan for their facility and operating schedule.

An energy broker is a company that finds the best possible rates from energy suppliers for their commercial and industrial customers. Energy brokers typically get paid by the suppliers and negotiate with the suppliers to find lower energy prices.
energy procurement strategies

Energy Contract Assessment

What type of energy procurement contract is best for my facility? 

LET'S FIND OUT

​​What Do Energy Brokers Do?

Brokers are energy professionals who make it their job to find the best energy prices for their clients. A typical broker might have 100 or more clients, and therefore needs to monitor the market for each and every account every day. Brokers need a deep understanding of what's happening in the energy markets, and also need to anticipate which direction they're going to take.

​​How To Find An Energy Broker

The goal of a good commercial energy broker is to search for the best gas and electricity energy contracts on behalf of their customers, while saving their clients a substantial amount of time and finding better energy deals.

Here are some tips to help you find a professional energy broker:

When you’re a first time energy buyer, comparing energy brokers can be a little tricky. They all provide different services and they use different terms to describe their services. The first thing to understand is that there are two kinds of energy brokers: the ones who sell electricity and gas directly to customers, and the ones who work on behalf of suppliers.

A direct broker works on behalf of a single supplier and will only quote you pricing from that single supplier. A commercial energy broker will obtain pricing from multiple energy suppliers on your behalf. This enables you to select the optimum contract price and structure for your facility.

​​The Energy Industry Is Changing

The energy industry is changing in a way that will have profound and lasting consequences around the world. The advent of new technology, and the entrepreneurial spirit that drives it, has created an unprecedented opportunity for business's in a deregulated energy market to take control of their energy use and operate more sustainably.


This is already happening. Commercial and industrial facility's are taking control of their energy choices. They’re installing solar panels on rooftops, buying into wind farms and creating community microgrids. This trend is likely to accelerate as renewable energy technology becomes more affordable and accessible. These trends in energy management should be followed closely by an energy broker, or an energy advisor, as they can directly affect energy prices.

Energy procurement can be confusing to businesses of all sizes. At A1 Energy, we help make energy procurement easy by offering flexible solutions and a personalized approach to each new business relationship. A1 Energy also specializes in energy efficiency and on-site generation projects. This three pronged approach helps clients optimize their energy consumption and energy spend. If you’re interested in learning more about how we can assist you, schedule a call with one of our energy consultants to get started.

TALK TO OUR ENERGY PROCUREMENT TEAM

Jon

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