Understanding Broker Fees: How We Get Paid (A Guide to Transparency)
Full Transparency on How We Are Compensated
We believe the energy brokerage industry is often too opaque about fees. Here is a clear explanation of how we are paid.
The "Supplier-Side" Fee Model
Our compensation is typically built into the energy rate provided by the winning supplier. Here's how it works:
- When a supplier bids on your account, their price is made up of the wholesale cost of energy, their profit margin, and the broker fee (our commission).
- This fee is a small, fixed amount per kilowatt-hour (kWh) consumed. For example, it might be $0.001/kWh.
- This model means you do not pay us directly. Our fee is part of the rate you agree to with the supplier.
Why This is a Win-Win
- No Upfront Cost: You get our expertise, analysis, and RFP management at no direct cost to your business.
- Aligned Incentives: Our goal is to find you the best overall rate. A lower rate for you makes for a long-term partnership, which is our ultimate goal. We are not incentivized to push one supplier over another, only the one that provides the best value.
- Full Disclosure: We will always show you, upon request, the exact amount of our fee within the rates being offered.