How Energy Broker Fees Work in Ohio (With Examples)
The short answer
Most Ohio commercial energy brokers are paid by the supplier through an adder built into your ¢/kWh price; some charge you a flat consulting fee instead, and some combine the two. None of these is improper — undisclosed compensation is the problem. When an Ohio business "gets a rate," that number may already include the broker's fee, so two 9.80¢ offers aren't comparable until you know what each one contains. Ask for compensation in ¢/kWh and total dollars, in writing, before you sign anything.
For what brokers do, see what is a commercial energy broker; for vetting a particular firm, see how to choose an energy broker; and for whether to use one at all, see broker vs going direct to a supplier.
Who's who
| Role | Does | Does not |
|---|---|---|
| Energy broker / consultant | Packages your load, runs the bid, explains contracts | Generate or deliver power |
| Retail supplier | Sells generation and sets the contract price | Own your local wires |
| Utility | Delivers power and bills delivery | Act as your supply-shopping agent |
Brokers serving Ohio customers must be certified by PUCO, and certificates last two years — check the firm on PUCO's list at https://puco.ohio.gov/documents-and-rules/list. Certification tells you the broker is registered; it doesn't tell you what the broker earns on your deal. That's what the questions below are for.
The three compensation models
1. Embedded ¢/kWh adder (most common)
The supplier's price to you includes the broker's fee, expressed in fractions of a cent (or mills) per kWh, and the supplier pays the broker as you use power. You never see a separate invoice.
Ask: "What is the adder in ¢/kWh, and is it the same in every supplier's bid?"
2. Flat or monthly consulting fee
You pay the consultant directly for running the process, and supplier prices come to you without an adder ("naked").
Ask: "If I pay you directly, will every supplier quote exclude any compensation to you?"
3. Hybrid
A smaller adder plus a project fee, typically for complex multi-site, index or renewable structures.
Ask: "What is the total of both parts over the term?"
Worked example: the same price, different deals
A business uses 1,200,000 kWh a year and receives 24-month fixed offers. Prices are illustrative but in line with 2026 generation prices of roughly 9–11¢.
| Scenario | Quoted price | Broker adder | Underlying supplier price | Annual generation cost | Broker's share per year |
|---|---|---|---|---|---|
| A | 9.80¢ | 0.10¢ embedded | 9.70¢ | $117,600 | $1,200 |
| B | 9.80¢ | 0.25¢ embedded | 9.55¢ | $117,600 | $3,000 |
| C | 9.55¢ + flat fee | $3,000/yr paid directly | 9.55¢ | $114,600 + $3,000 = $117,600 | $3,000 |
All three cost $117,600 a year. But Scenario B's supplier was actually 0.15¢ cheaper than A's — worth $1,800 a year — and that difference went to the broker rather than to you. Without the adder disclosed, "9.80¢" isn't a comparable number.
Worked example: why equal adders matter
Assume 1,000,000 kWh a year on a 36-month term:
- Supplier A quotes 10.10¢ including a 0.15¢ adder (underlying 9.95¢).
- Supplier B quotes 10.05¢ including a 0.25¢ adder (underlying 9.80¢).
B looks 0.05¢ cheaper. In fact B's supplier is 0.15¢ cheaper; with a 0.15¢ adder on both, B would have been 9.95¢ — $1,000 a year less than its actual quote. Insisting that the adder is identical across all bidders makes the ranking reflect supplier pricing, not broker economics.
At 0.15¢ on 1,000,000 kWh, the broker earns about $1,500 a year, or $4,500 over 36 months at flat volume.
What a fee adds up to over a term
Total broker compensation over 36 months at flat usage:
| Annual usage | 0.10¢/kWh | 0.20¢/kWh | 0.30¢/kWh |
|---|---|---|---|
| 500,000 kWh | $1,500 | $3,000 | $4,500 |
| 1,000,000 kWh | $3,000 | $6,000 | $9,000 |
| 5,000,000 kWh | $15,000 | $30,000 | $45,000 |
Against a generation price near 10¢, a 0.20¢ adder is about 2% of the generation cost. Because per-kWh fees scale with volume and term, larger accounts should ask whether a flat fee or a lower adder is available.
How to compare offers fairly
- Put every bid in one spreadsheet: term, product type, capacity treatment, bandwidth, pass-throughs and credit requirements.
- Require each row to show whether a broker fee is included and how much.
- Estimate term cost as kWh × price under a realistic usage band (±10–15%), not a single perfect year.
- Reject "flash quotes" that expire before you can normalize terms — the fix is to approve contract terms before price day.
The full process is in the commercial RFP process guide.
Red flags
- Refusal to disclose compensation in writing.
- Different adders in different suppliers' bids without explanation.
- A single-supplier "exclusive" offer with no market check.
- Pressure to sign the same day without a contract summary.
- Savings claims made without reference to your contract end date and actual usage.
Disclosure language to request
"Please confirm in writing: (1) your total compensation in ¢/kWh and in dollars for this term; (2) whether every supplier bid includes the same compensation; (3) whether any supplier pays you a different amount or any volume, term or renewal bonus; (4) whether any part is paid up front and could affect an early termination charge."
If the answers are verbal only, pause the award.
FAQ
Are energy broker fees legal in Ohio?
Yes. Brokers must be certified by PUCO, and being paid by suppliers or clients is normal. The problem is hidden or misrepresented compensation.
Does a higher broker fee always mean a worse deal?
Not always — supplier access and contract quality matter too — but an undisclosed fee prevents you from comparing net prices, which is the point of shopping.
Can I get quotes without any broker fee?
Yes. You can go directly to suppliers, or pay a consultant a flat fee and ask that all quotes exclude compensation to the consultant.
How much does a broker earn on a typical deal?
It's the adder times your usage over the term: 0.15¢/kWh on 1,000,000 kWh a year is $1,500 a year, or $4,500 over three years.