An energy broker’s job is to help you navigate potential energy savings contracts from Energy Service Companies (ESCO) is right for you. There are many fixed energy contracts, so You always want to be comparing apples to apples.
For example, when signing a Natural Gas Contract, does it include line loss and other potential loss prevention. There are many clauses in these contracts and the job of the broker is to look out for you and get you the lowest rate with the best terms.
FAQs
How will my electric be delivered if I switch suppliers?
It doesn’t. In fact, it’s delivered the exact same way. The reason is, your utility company is responsible for delivery. As a result, it’s done through the exact same wires which are currently set up.
What happens if my power goes out?
Your utility company will fix it, they are the ones which you pay delivery charges on a monthly basis. You will ALWAYS pay delivery charges to your local utility regardless of your supplier.
How will I be billed?
You can do choose between single or Dual Billing. This means, you pay one bill at the end of each month. I always recommend setting up AutoPay(if doing single billing). As a result, nothing changes except for what your supplier which is named on your bill.
The reason why companies like fixed energy rates
The price per kWh for electric or Therms gas will stay the same for the duration of your gas and/or electric contract. It also serves as an insurance policy to make sure you’re prices don’t go up!
I tried signing up but lost money. How we help you avoid common costly pitfalls
Some people say, how can you save us money if I overpaid in the past?
ESCOs can provide insurance and savings if your broker puts you first. However, the bargains are only available when you are on a contract. However, as soon as the contract ends (lapses), you get transferred to a “variable” rate (which is usually 30% percent more than what you were paying before the contract expires. There are many people who blame the ESCOs for the high variable rates. In our opinion, we believe the broker has the responsibility to take care of you. That is the reason the broker is getting paid. Unfortunately,I have seen way too many cases where energy brokers failed their clients by not renewing a contract before the current one expires.
So how I do make sure that my ESCO doesn’t raise my prices?
You have to make sure that you reenroll your contract. We believe it’s the brokers responsibility to call you and follow up to re enroll our customers using the same process we originally used. We shop around get you the best price and help you get the best price possible. It’s through the constant shopping around that will lead to savings long term.
My energy contract is expiring soon or expired
• One of the ways people throw their savings away is when they let their meters go onto a variable rate. Variable rates at ESCOs are similar to your utility company, but are usually more 30% expensive. So, one must make sure to Reenroll into another flexed rate. Otherwise, you can lose all your savings from the whole year before!
• It is safe to say, that the lowest rate is NOT the determining factor in energy savings. It’s the reliability of a broker to renew your contract for the next 12, 18, 24, or 36 months after your contract expires. It’s worth saving less and compensating your broker then going direct and forgetting to renew. If you forget to renew, you could have had the lowest rate, but when you get charged variable by any supplier, it doesn’t take long to lose all of last year’s savings. In fact, two months on a variable rate will wipe out your savings!
I know some might say…I.
• I know some readers will say, I’ll remember. Im organized. To them I say, there is a higher chance a broker will remember because, lets face it, brokers are getting paid to get you to sign. Whereas, you’re just saving future money by paying less. Thus, brokers will make sure you renew your contract. You are paying a broker to nag you or drive you nuts to renew. I’ve seen big real estate firms drop the ball because they wanted to be greedy and save another couple of dollars. They lost 30-40% in the end. They have paid 30-40 thousand dollars. So, Choose a broker you feel is reliable and trustworthy.
• The Importance of dealing with a broker vs agent. An agent usually represents only one supplier. Its possible that one supplier will be competitive but definitely not likely. In contrast, a broker is someone who deals with multiple companies and can g help you navigate many types of contracts. Furthermore, It’s very common to use two separate companies for gas and electric. Always ask the broker to show you separate contracts of two companies then you’ll be able to able tell if he/she is a broker.
