As energy markets evolve and deregulation expands, more businesses are turning to energy consultants and brokers to help navigate the complex process of selecting an electricity or natural gas supplier. These experts play a critical role in helping organizations optimize costs, manage risk, and ensure contractual terms align with business goals.
Beyond supplier selection, many consultants offer added value services such as reviewing utility invoices for accuracy, managing payment processes, identifying available rebates or incentives, and providing customized reporting. While these services are helpful, one of the most important functions of a consultant is guiding the supplier selection process in deregulated energy markets.
Understanding Product Types and Risk
Electric and natural gas suppliers typically offer three main types of pricing structures:
- Fixed price
- Variable price (tied to a market index)
- Hybrid pricing (a mix of fixed and variable components)
A qualified consultant should clearly explain the risks and benefits of each structure and help determine which one best suits your organization’s needs based on usage patterns, budget requirements, and risk tolerance.
Supplier Contract Terms Matter
A skilled consultant should also highlight key differences in supplier contract language. For example, a fixed-price natural gas offer might come with restrictions on usage volumes. While not inherently negative, such clauses could have major cost implications if they don’t align with your actual consumption. Educating clients on these fine-print details is essential for making informed decisions.
The Importance of Synchronized Pricing
The energy market, like the stock market, fluctuates daily. A critical — and often overlooked — part of energy procurement is ensuring that price quotes from different suppliers are gathered simultaneously. If one supplier provides a quote on Monday and another on Wednesday, comparing those numbers directly is misleading because market conditions may have changed in between. A reputable consultant will coordinate pricing requests to occur at the same time for an accurate comparison.
When Staying on Utility Tariff Makes Sense
In some cases, your consultant may recommend temporarily staying on a utility’s standard offer or tariff rate. This can be a smart short-term strategy when market prices are unusually high, your facility faces operational uncertainty, or the utility rate is currently competitive. However, this approach should always be part of a defined strategy and should not be considered a long-term solution.
Why Brokers Need Exclusivity
In deregulated markets, most suppliers only work with one broker per customer to avoid duplication and confusion. This means brokers often need an exclusivity agreement to request pricing on your behalf. Without it, you risk receiving inconsistent or invalid pricing due to overlapping submissions. The “first broker in” rule — where only the first broker to submit pricing is recognized — reinforces the need for a clear and exclusive relationship between broker and client.
How Brokers Are Paid
Most consultants are paid a small fee embedded in the energy supply rate. While some may claim their services are free, the reality is that every consultant includes a markup — the key is transparency. For example, if Supplier A offers a base rate of $0.05000/kWh:
- Consultant A adds $0.001/kWh, making the final rate $0.05100/kWh
- Consultant B adds $0.002/kWh, making the rate $0.05200/kWh
Pricing should always be evaluated in the context of total value — including expertise, service, and strategy — not just the final number.
Why Choose Renodis as Your Energy Broker?
Renodis isn’t just another broker — we’re a strategic partner that brings clarity, consistency, and savings to your energy procurement process. Here’s why businesses choose Renodis:
- Deep Market Expertise: We understand the complexities of energy markets and help you make confident decisions backed by data and market insight.
- Supplier-Agnostic Transparency: Our priority is finding the best fit for your organization — not pushing a preferred supplier.
- Comprehensive Support: From contract review to market timing, invoice analysis, and reporting, we provide a full-service approach that goes beyond just quoting.
- Integrity in Pricing: We disclose how we’re compensated and help you compare offers on a level playing field.
- Client Advocacy: We act as an extension of your team — working exclusively for your benefit, not the suppliers’.
When energy strategy matters, trust Renodis to help you move your business forward with confidence. info@renodis.com
