Energy Broker Myths
Businesses that engage energy brokers realize higher energy costs and increased business risk. Period.
Businesses must understand that claims from energy brokers that their services “are at no cost” are simply untrue. Energy brokers use creative phraseology, word twists, and half-truths to mask the fact that their fees are upcharge premiums added to the an energy supplier’s real (and lower) energy price. Additionally, energy brokers use a multitude of methods to hide and ultimately increase these hidden upcharges – ultimately at their customer’s expense.
This is diabolical. Energy consumers looking for help with energy supply are misled to believe they are getting a great service at no cost, but ultimately suffer serious financial consequences – a result of hidden upcharge schemes. In addition to significantly inflated energy prices, there is huge business risk tied to energy brokers that further exasperate the financial consequences tied to energy brokers.
Contrary to their claims, energy brokers actually set their own upcharges which are added to the energy supplier’s actual (and lower) price. This has led to significant upcharge abuse, which ultimately translates into significantly inflated energy prices.
The issues tied to energy brokers are complex. Not only are there a multitude of complexities surrounding the hidden energy broker fee, there are additional (and even more significant) issues tied to increased business risk. The blog on this website has a category called “Energy Broker Gimmicks and Myths” that goes into much greater detail about the multitude of problems tied to energy brokers. To get a good start on understanding the basics, feel free to read the first and second energy broker myths:
On the surface, it may appear that there is no distinction between energy consultants and energy brokers. Both offer services geared toward energy procurement.
That is where the similarities end. The differences are vast, and ultimately are proven in the prices that consumers pay for energy.
True energy consultants like Foster LLC use a transparent fee structure. This allows energy consumers to properly evaluate the cost/reward benefits of engaging an energy consultant. Based on experience, the fees from an energy consultant are significantly lower than the hidden fees of energy brokers. Ultimately, energy consumers that engage true energy consultants realize lower energy supply prices.
Foster LLC has been successful proving this. For example, Foster LLC is actively working with a manufacturer that previously engaged an energy broker. This business switched to Foster LLC because they discovered (and this was ultimately confirmed by their energy supplier) that the energy broker had built a fee into the price that amounted to $140,000 annually. They, like others that have been duped by energy brokers, thought they were getting a “free” service at “no cost” to them. As a result of the hidden energy broker fee, their energy price (the energy source in this case was natural gas) was 133% higher than the energy supplier’s real price. Foster LLC’s fee was 93% lower than the energy broker’s fee.
Businesses that hear these stories cannot believe this is happening, but it is.
Please contact Brad Foster at Foster LLC at (412) 308-6482 if you would have any questions or if you would like to discuss.