How Energy Broker Fees Work in Ohio (Transparent Guide)

Why broker fees matter more than the brochure rate

When an Ohio business “gets a rate,” that number may already include broker compensation. If you do not know how the broker is paid, you cannot tell whether two 6.9¢/kWh offers are truly equal.

This guide explains common compensation models for commercial electricity brokerage—not residential door-to-door scams—and the questions that keep procurement honest.

What a broker is (and is not)

Role	Does	Does not
Energy broker / consultant	Packages load, runs RFPs, explains contracts	Generate or deliver power
Retail supplier	Sells generation/supply	Own your local wires
Utility	Delivers power, bills delivery	Usually not your competitive supply choice agent

More definition: What is an energy broker?

Common compensation models

1. Embedded ¢/kWh adder (most common)

The supplier’s price to you includes a broker fee in mills or ¢ per kWh for the term volume. You may never see a separate invoice.

What to ask: “What is the broker adder in ¢/kWh, and is it the same across all bidders?”

2. Flat or monthly consulting fee

Some sophisticated buyers pay a fixed fee for RFP management and keep supplier prices “naked.”

What to ask: “If I pay you directly, will supplier quotes exclude your margin?”

3. Hybrid

Smaller adder plus project fees for complex multi-site or renewable structures.

How to compare offers fairly

1. Put every bid in one spreadsheet: term, product type, bandwidth, pass-throughs, credit requirements.
2. Require each row to show whether broker fee is included and the amount.
3. Compute estimated term cost: kWh × price under a realistic usage band—not a single perfect year.
4. Reject “flash quotes” that expire before you can normalize terms.

Use a structured process: Energy RFP process guide.

Red flags

• Refusal to disclose compensation in writing
• Single-supplier “exclusive” deals without market check
• Pressure to sign same-day without contract summary
• Savings claims without reference to your current contract end date and volume

How Ohio Commercial Energy approaches fees

We believe buyers deserve a clear answer to “how are you paid?” before letters of authorization go out. Ask us to show compensation on a ¢/kWh basis alongside supplier rankings. Details of a specific deal are confirmed in writing for that RFP—not buried in fine print you never see.

FAQs

Are broker fees illegal?

No. Compensation is normal. Hidden or misrepresented fees are the problem.

Does a higher broker fee always mean a worse deal?

Not always—execution quality, supplier access, and contract negotiation matter—but undisclosed fees prevent rational choice.

Can I bid suppliers myself?

Yes. See broker vs direct supplier. Many finance teams still use brokers for bandwidth and normalization.

Worked example (illustrative math)

Suppose two suppliers quote 6.80¢/kWh fixed for 24 months on 1,200,000 kWh/year:

Scenario	Broker adder	Effective generation	Est. annual generation cost
A	0.10¢/kWh embedded	6.80¢ (already includes fee)	1,200,000 × $0.0680 = $81,600
B	0.25¢/kWh embedded	6.80¢ (already includes fee)	Still $81,600 on paper—but naked supplier price might have been 6.55¢
C	Client-paid $3,000/yr consulting; naked supply 6.55¢	6.55¢ + fee outside kWh	1,200,000 × $0.0655 = $78,600 + $3,000 = $81,600

The point is not that one model always wins—it is that without knowing the adder, “6.80¢” is not comparable. Always rebuild total cost under your real volume band (±10–15% sensitivity).

Sample disclosure language to request in writing

“Please confirm in writing: (1) total broker compensation in ¢/kWh or dollars for this term; (2) whether every supplier bid includes the same compensation; (3) whether any supplier pays a different amount; (4) whether any volume or renewal bonuses apply.”

Next step

Request a rate review and ask for fee disclosure up front—or read About us.

Meter spreadsheet columns that matter — understanding broker fees

For understanding broker fees, apply these research-backed operating practices:

Track non-shoppable riders separately so commodity wins are not confused with regulated charge movement.

List every meter with utility, account number, service address, and legal owner before any supplier outreach.

Illustrative volume anchor used on this page only: about 1,450,000 kWh/year context. If trailing peak exceeds average by roughly 23%, demand literacy is not optional.

Send credit contacts early on industrial and multi-site packages; underwriting delays kill otherwise good market timing.

Canonical process pages (linked, not copied): RFP process, bill reading, broker fees, fixed vs variable.

Operator interview prompts — understanding broker fees

For understanding broker fees, apply these research-backed operating practices:

Send credit contacts early on industrial and multi-site packages; underwriting delays kill otherwise good market timing.

After enrollment, audit the first bill for supply versus delivery accuracy and archive the utility confirmation.

Illustrative volume anchor used on this page only: about 1,500,000 kWh/year context. If trailing peak exceeds average by roughly 25%, demand literacy is not optional.

Set renewal reminders 6 to 9 months early for large loads to avoid forced last-minute acceptances.

Canonical process pages (linked, not copied): RFP process, bill reading, broker fees, fixed vs variable.

Renewal calendar discipline — understanding broker fees

For understanding broker fees, apply these research-backed operating practices:

Set renewal reminders 6 to 9 months early for large loads to avoid forced last-minute acceptances.

Send credit contacts early on industrial and multi-site packages; underwriting delays kill otherwise good market timing.

Illustrative volume anchor used on this page only: about 1,300,000 kWh/year context. If trailing peak exceeds average by roughly 53%, demand literacy is not optional.

Present offers with equalized fees, bandwidth, and pass-through assumptions; headline cents alone mislead executives.

Canonical process pages (linked, not copied): RFP process, bill reading, broker fees, fixed vs variable.

Worked compensation example (illustrative)

Assume 1,000,000 kWh/year and a broker adder of 0.15¢/kWh embedded in a fixed supply price.

• Annual broker compensation ≈ 1,000,000 × $0.0015 = $1,500/year
• Over a 36-month term at flat volume ≈ $4,500

If Supplier A quotes 7.10¢ with a 0.15¢ adder and Supplier B quotes 7.05¢ with a 0.25¢ adder, rebuild both rows with adders disclosed before ranking.

Disclosure questions to put in writing

1. What is your compensation in ¢/kWh or $/month for this deal?
2. Is that compensation identical across all bidders in the RFP?
3. Will you provide supplier confirmation of the adder?
4. Are there volume bonuses or after-the-fact true-ups to your fee?
5. Who owns the renewal relationship and calendar?

If answers are verbal only, pause the award.