Three channels exist for buying competitive electricity as a business: hire a broker to shop on your behalf, use a comparison marketplace to see quotes side-by-side yourself, or go direct to a single supplier. Each channel has real trade-offs — and a different compensation structure baked in.
Understanding how each channel gets paid is the fastest way to evaluate whether the advice you receive is working for you or for someone else.
An energy broker contacts multiple competitive suppliers on a business’s behalf, sends out a request for pricing based on the account’s usage history and desired contract term, and presents the results. Brokers track renewal windows, manage paperwork through enrollment, and can negotiate contract language on large accounts.
The service looks free from the outside — brokers rarely invoice the customer directly. The payment comes through the supplier. Every supplier builds a per-kWh margin into the rate it quotes through the broker channel. That margin, sometimes called an “adder,” flows from the supplier to the broker after the customer pays the bill. A customer on a 24-month contract at a half-cent adder pays that amount on every kilowatt-hour for two years, whether or not the contract mentions it.
Asking a broker to disclose the adder in writing is reasonable and legitimate. Reputable brokers answer the question clearly. Some markets have disclosure rules; others leave it to the customer to ask. Knowing the number helps a business judge whether the service is worth the cost — and on a large account, an experienced broker who secures a better base rate can easily cover the adder and then some.
Comparison marketplaces present multiple supplier quotes in one place so a business can evaluate them directly. The quotes are typically all-in rates — what the business will actually pay per kWh for supply, before delivery charges. Enrollment happens through the platform rather than through a back-channel supplier relationship.
Marketplaces earn revenue in a similar way to brokers — suppliers pay a margin on enrolled customers — but the structure is visible rather than folded invisibly into a recommendation. The customer sees ranked options and makes the call.
ElectricRates.org operates as a comparison service. Residential customers in deregulated states use the platform to see live rates by ZIP code; the commercial side pairs real-time quotes with a human team that handles enrollment for business accounts, with the same side-by-side transparency.
Contacting a competitive supplier directly is always an option. For very small commercial accounts — a single-location business using less than 50,000 kWh per year — the process is straightforward and the dollars at stake are modest. A direct call or web quote takes minutes.
The limitation is competitive pressure. A supplier quoting a single prospect has no reason to sharpen the number. A broker sending that same account to six suppliers, or a marketplace showing those six quotes in one screen, gives the supplier a reason to compete. On larger accounts — above 50,000 kWh annually, or multi-site — the difference between a competitive and an uncontested quote can be meaningful over a multi-year term.
| Channel | How it’s paid | Transparency | Best for |
|---|---|---|---|
| Energy broker | Per-kWh adder folded into supplier quote; customer pays it whether disclosed or not | Variable — ask for the adder in writing | Complex loads, multi-site accounts, large annual spend where negotiation earns its fee |
| Comparison marketplace | Supplier margin on enrolled customers; all-in quotes visible to the buyer | High — competing quotes visible side-by-side | Small-to-mid accounts where price is the main variable and self-serve comparison is practical |
| Direct to supplier | No intermediary margin; supplier quotes its own rate directly | High for the single quote shown; no competitive context | Very small accounts where simplicity outweighs the savings from competition |
Energy brokerage is a regulated profession in deregulated electricity markets. Verifying a broker before engaging takes a few minutes and protects a business from bad actors.
States such as New Jersey, Pennsylvania, Ohio, and Massachusetts require competitive suppliers and their authorized agents to hold state licenses. Your state utility commission’s website lists licensed suppliers and brokers. A broker operating without a required license is a red flag.
Request the per-kWh adder in writing before signing anything. Reputable brokers answer this question without pushback. A refusal to disclose, or a verbal-only assurance that the service is “free,” signals that the compensation structure is not in the customer’s interest to understand.
A broker who has worked with businesses in your industry and size range should be able to provide references. Ask specifically about the renewal experience — that is where the broker’s ongoing value (or lack of it) shows up.
Both brokers and marketplaces are legitimate channels. The right one depends on account complexity, not a blanket rule.
Small accounts — a single location under 50,000 kWh per year — are well-served by a marketplace or comparison service that shows all-in rates in one place. The account is straightforward enough that a self-serve comparison covers the decision. There is no contract structure to negotiate and no capacity strategy to manage.
Large or complex accounts — multi-site portfolios, accounts above 500,000 kWh annually, businesses with demand charge exposure, or operations with load-shifting flexibility — benefit from a broker if that broker has real supplier relationships, discloses the adder, and earns the margin by securing a better base rate than the account would get on its own. On those accounts, the negotiation itself justifies the cost.
The test in every case: get the all-in rate. Whether working through a broker or a marketplace, confirm that the quoted rate includes every supplier charge and that delivery charges from the utility are separate. A rate that looks attractive as a supply quote can look different once distribution, transmission, and utility riders are added.
An energy broker contacts multiple competitive suppliers on a business's behalf, requests quotes based on the account's usage history and contract term, and presents the options. Brokers manage the paperwork, track renewal dates, and can negotiate contract terms. The service is not free — brokers earn a per-kWh adder folded into the supplier's price. The customer pays it whether or not it appears as a named line on the contract.
Yes. Energy brokerage is a legal, regulated channel in every deregulated state. Brokers operating in states that require third-party supplier licensing must hold that license. Legitimate brokers disclose their compensation in writing when asked and can provide references from comparable accounts. Warning signs include pressure to sign quickly, refusal to disclose the per-kWh adder, and verbal-only pricing without a written term sheet.
Most energy brokers earn a margin — a per-kWh adder — that the supplier folds into the quoted rate. If a supplier's cost to serve is 7.2 cents per kWh and the broker earns 0.3 cents, the customer sees 7.5 cents. The customer pays the full amount regardless of whether the adder is disclosed on the contract. Some brokers also charge a flat advisory fee, particularly on large or complex accounts, and credit any supplier margin against it.
A comparison marketplace shows multiple supplier quotes side-by-side in real time so businesses can evaluate price, term, and contract type themselves. The quotes are typically all-in rates. An energy broker works on the customer's behalf behind the scenes and presents a curated recommendation rather than a live grid of options. Marketplaces suit straightforward accounts where price is the main variable; brokers add value on complex loads, multi-site portfolios, or accounts large enough to warrant custom negotiation.
Going direct makes sense for the smallest commercial accounts — typically below 50,000 kWh per year — where a single supplier quote is quick and the savings opportunity is limited. Above that threshold, getting only one quote removes the competitive pressure that drives rates down. A broker or marketplace gives the supplier a reason to sharpen the number.
ElectricRates.org is a comparison service, not a broker. Our commercial team pulls live supplier quotes for your account, shows them side-by-side at all-in rates, and handles enrollment — with the same pricing structure visible to you from the start.
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