Category Archives: Energy Broker Gimmicks and Myths

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The Two Hidden “Gotchas” Associated with “Free” Energy Broker Services


The “Free” Services of Natural Gas or Electricity Supply Brokers Aren’t Free If you are a commercial or industrial energy consumer in states where energy choosing third-party natural gas or electricity suppliers is an option, you either have been or will be contacted by natural gas or electricity supply brokers that offer to get and help you compare energy supply quotes for “free” and without obligation.   Sounds good right? You get free energy price quotes, free market intel, free consultation, and without an obligation to sign a contract either with a supplier or broker. What can go wrong?   The problem is, consumers don’t realize that there are two […]

Energy Broker Commission: The Truth Revealed


It’s Not An Energy Broker Commission, It’s a Hidden Upcharge You’ve been approached by an energy broker and told you that they can get you the best energy deal out there. You’re intrigued. You would like help comparing energy suppliers. But, you’re smart. You ask the energy broker a responsible question, “How much will it cost my company to use your services?” Most likely, the response will be, “there is no cost to you.” But, you know better than that. You intuitively say to yourself, “The energy broker isn’t doing this for free. They are making money somehow.” So, you ask the next sensible question. “How do you make your […]

Broker to Broker Outsourcing Leading to Fat Energy Supply Prices


Energy Consumers Paying Twice for “Free” Energy Brokering Services Did your energy broker outsource the brokering of your natural gas and electricity supply deals to another energy broker? If this is the case, you can bet that your natural gas or electricity supply prices are significantly over-inflated. Most energy consumers that engage energy brokers are unaware that broker-to-broker outsourcing occurs, let alone understand the significant inflationary impact it has on their energy supply costs.   This blog exposes this practice and explains how it leads to exorbitant energy supply price escalation.     For this blog to make sense, you need to invest in understanding the basic broker business model. […]

The Aggregation Myth Debunked


Energy brokers use a sales tactic designed to create a perception that they garner more cost-effective energy supply deals for consumers because they have “special” buying power.  The notion that energy brokers have buying power is a myth, and energy consumers that buy into this myth realize significantly inflated natural gas and electricity supply costs, and the video posted below explains why.  Video: The Aggregation Myth Debunked  

“I didn’t eat the cookies on the table.”

A mother tells her child, “Don’t eat the cookies on the table.” Ten minutes later, the mother returns to the kitchen to find that the cookies are gone. Upon questioning, the child says, “I didn’t eat the cookies on the table. I ate the cookies that were on the PLATE on the table.”  When it comes to kids, this is amusing. When it comes to energy supply brokers, this is not funny. Why? Because there are real repercussions for energy consumers, taking the form of significantly inflated energy supply prices – a function of hidden and undisclosed energy broker fees.   Energy brokers use a similar reasoning to deflect attempts […]

Energy Broker Myth # 4: Energy Brokers are “Channel Partners”

“Energy Broker Myths” 1 through 3 introduce tactics that energy brokers use to mask the fact that they add upcharges to energy suppliers’ real (and lower) energy prices. Consequently, energy consumers that engage energy brokers realize significantly inflated energy prices, the result of hidden, embedded, and outrageously high energy broker upcharges. These tactics are outlined in the following posts:  Energy Broker Myth # 1: “There is no cost to you” Energy Broker Myth # 2: “My fee is paid by the supplier” Energy Broker Myth # 3: Energy Brokers Are Energy Consultants  Energy brokers use another creative tactic to avoid upcharge disclosure. This tactic is designed to create the perception […]

Energy Broker Myth # 3: Energy Brokers Are Energy Consultants

With word getting out that energy brokers are gouging energy consumers via hidden upcharges built into energy supply prices, energy brokers are attempting to re-brand themselves as energy consultants. The goal of the re-branding is to eliminate any reference and potential negative imaging associated with energy brokers.  However, these energy brokers have not changed their tactics to dupe and gouge energy consumers (at the cost of energy consumers) via hidden upcharges added to energy suppliers actual (and lower) prices. They still employ the tactics described in Energy Broker Myth # 1: “There is no cost to you“ and Energy Broker Myth # 2: “My fee is paid by the energy […]

Energy Broker Myth # 2: “My fee is paid by the supplier”

“My fee is paid by the supplier” is a common phrase used by energy brokers to describe how they are compensated. Like Energy Broker Myth # 1 (“There is no cost to you”), this phraseology is an intentional and strange word twist that creates a false understanding of how energy broker deals actually work – ultimately at a significant cost to the energy consumer.  What the consumer hears: Since the broker is receiving a commission from the energy supplier, there really is no cost to my employer to engage the energy broker.  What the energy broker means: I get a check from the energy supplier. The energy supplier cuts me […]

Energy Broker Myth # 1: “There is no cost to you”

Energy brokers often utilize a sales tactic that creates a false perception that energy brokering services are free for the energy consumer. Brokers commonly tell the consumer that “there is no cost” to engage the broker. This sounds really appealing; but, this is a strange twisting of words that ultimately translates into significantly inflated energy supply prices for the consumer.  When brokers use this phrase, they are speaking in code.  What the consumer hears: My employer will not incur costs to engage the broker.  What the broker means: You will not receive an invoice from us.  This is deceptive. How?  Two ways. First, the energy supply price provided by the […]