What Is a Commercial Energy Broker? How Brokers Work
The short answer
A commercial energy broker is an intermediary who gathers competing electricity (and often natural gas) supply offers for a business, puts them on a comparable basis, and manages the paperwork through enrollment and renewal. A broker doesn't generate, deliver or own the power: your utility still delivers it and a certified supplier sells it. In Ohio, power brokers must be certified by the Public Utilities Commission of Ohio (PUCO) before serving customers, and certificates must be renewed every two years.
This page defines the role and walks through how it works. To evaluate a specific firm, see how to choose an energy broker, which is a vetting checklist; to decide whether to use one at all, see broker vs going direct to a supplier; and for compensation math, see how broker fees work.
Who does what in Ohio's market
Ohio separates delivery from generation. Your utility — AEP Ohio, Duke Energy Ohio, AES Ohio, Ohio Edison, The Illuminating Company or Toledo Edison — keeps the wires. The generation can come from the utility's default service or from a competitive supplier. Brokers sit between you and those suppliers.
| Role | What it does | Sells you power? | PUCO oversight |
|---|---|---|---|
| Utility (EDU) | Delivers power, restores outages, bills delivery, provides default service | Only as default service | Regulated utility |
| Competitive supplier (CRES provider) | Sells generation under a contract and sets the price | Yes | Certified |
| Broker / consultant | Arranges supply on your behalf, compares offers, handles paperwork | No — it doesn't take title to the power | Certified as a power broker |
| Aggregator | Combines many customers' load, as in community aggregation programs | No | Certified |
The labels vary — "energy consultant," "procurement advisor," "energy advisor." If a firm is arranging or negotiating electricity supply for you, ask for its PUCO certificate regardless of what it calls itself.
How a broker works, step by step
- Discovery. The broker learns your sites, contract end dates, budget goals and risk tolerance.
- Authorization. You sign a letter of authorization (LOA) that lets the broker request your usage history and capacity tag from the utility. An LOA grants data access — it should not commit you to a contract.
- Data package. Twelve to twenty-four months of bills, interval data for larger or peaky sites, account numbers exactly as printed, and the legal entity name.
- Product specification. Term, start date, fixed vs pass-through capacity, bandwidth, renewable content.
- Supplier outreach. The same package goes to multiple certified suppliers active in your utility territory, with a common bid deadline.
- Normalization. Offers are converted into one grid — same term, same inclusions, broker fee disclosed — so the ranking reflects real differences.
- Contract review and award. The broker flags clauses such as bandwidth penalties, pass-throughs, material change, early termination and renewal. You sign; the broker doesn't sign for you.
- Enrollment. The supplier enrolls your accounts with the utility. The switch happens on a meter-read date, typically within one or two billing cycles (AEP Ohio requires enrollment 12 days before the read). The utility sends a confirmation letter, and small commercial customers have 7 days from its postmark to rescind.
- Lifecycle. First-bill check, renewal calendar and re-bid well before expiration. Under HB 15, small commercial accounts (25 kW or less) get two supplier notices before a fixed contract rolls to a variable price (90–60 days and 45–15 days before expiration); larger accounts get none — a good broker acts long before either matters.
Typical timeline
| Phase | Timing | Outcome |
|---|---|---|
| Discovery and authorization | Week 0–1 | Goals, sites, LOA signed |
| Data assembly | Weeks 1–3 | Complete load package |
| Market process | 1–3 weeks | Competitive bids received and normalized |
| Award and contract | 1–2 weeks | Contract executed |
| Enrollment | 1–2 billing cycles | Supplier appears on the utility bill |
Multi-site portfolios and larger credit reviews stretch the middle phases, which is why starting 6–9 months before expiration is safer for large loads.
How brokers are paid (in brief)
Most commercial brokers are paid by the winning supplier through a small adder built into your ¢/kWh price — for example, 0.15¢/kWh on 1,000,000 kWh a year is $1,500 a year. Some consultants instead charge you a flat fee and obtain supplier prices without an adder, and some combine the two. None of these is improper; undisclosed compensation is the problem. Ask for the fee in writing in ¢/kWh and total dollars over the term. The worked examples are in how broker fees work.
PUCO certification: what it means
Ohio law (R.C. 4928.01(A)(9) and 4928.08) requires power brokers and aggregators to be certified by PUCO before serving Ohio customers. Practical points:
- Certificates last two years, so check that a certificate is current, not just that one was issued.
- Verify on PUCO's list of regulated companies at https://puco.ohio.gov/documents-and-rules/list, and make sure the certified entity is the same one named on your agreement.
- Certification is a floor, not an endorsement. It confirms the firm is registered with PUCO; it doesn't tell you how many suppliers it works with or what it earns on your deal.
What a broker can't do
| Limitation | Why it matters |
|---|---|
| Change your delivery charges | Distribution, transmission and riders are set through PUCO and your utility's tariff |
| Change the PJM capacity price | It's set by auction ($329.17/MW-day for 2026/27); a broker can only help structure how you pay it |
| Guarantee savings | Market prices on the day you sign drive the result |
| Get you utility efficiency rebates | AEP Ohio, Duke, AES Ohio and the FirstEnergy utilities don't currently offer business rebate programs |
| Serve you in a municipal or co-op area | Those customers generally can't choose a supplier |
FAQ
Is an energy broker the same as an energy supplier?
No. The supplier sells you the electricity and sets the contract price; the broker arranges and compares offers from suppliers and doesn't own the power.
Does using a broker cost more?
The fee is usually built into the supplier's price, so you pay it indirectly. Whether the net price is lower depends on how much competition the broker creates, so compare offers with the fee disclosed.
Will my power be interrupted if I switch through a broker?
No. Your utility continues to deliver electricity over the same wires; only the generation supplier and the generation line on your bill change.
Can a broker help if I'm served by a city utility or co-op?
Generally not for supply choice, because municipal and cooperative customers usually can't pick a supplier. See municipal and co-op service areas.