Why Should I Consider Using a Broker?
A broker represents many companies. He has knowledge of their customer size preferences, credit requirements, billing and back office procedures and protocols, and other special information about each company he represents. The broker learns of your needs and selects the company(ies) that are most likely to give you the best rate, term, and buying experience.
Wont I pay More with a Broker vs. Going Directly to the Provider?
When you contact the provider directly, you are directed to their internal sales office. They quote you a retail electricity price. The broker has a special arrangement with the electricity provider and is quoting from the wholesale electricity price. While he has a mark-up to enable him to stay in business, it is often significantly less than the internal mark-up that the provider must pay for their in-house sales force. You get a lower rate.
Wholesale vs Retail Pricing
Wholesale pricing is the price it costs to produce the electricity and get it on the power lines. Retail electricity has this cost, too, but also has the cost of additional overhead such as the monthly salaries, rent, utilities (phone, electricity, internet, etc) and benefits for the in-house sales force and support staff.