Also, estimates which assume that you use more electricity in the spring and less in the summer will result in lower prices than you will achieve in reality. Review load factor assumptions in your contract. Beware companies which may not last out the year. When representing a generator, a broker is a seller's broker. When representing a buyer, a broker is a buyer's broker.
Brokers work on a fee or commission basis.
Today, the fees are relatively extravagant. As the market becomes more liquid, and the number of transactions increase, brokerage fees will drop dramatically, as will the margins achieved by power marketers. In summary, electric power solicitation has changed dramatically. Where once it was simple rate negotiations with the local utility, with perhaps the fillip of an independent power plant, today procurement is done using an experienced broker who will increasingly assist the customer in selecting among power marketers as their suppliers of choice. Of course, for the power marketer, the procurement of electric power and risk management adjuncts becomes a much more complicated business, involving a continual hunt for less expensive generation and transmission paths, and better risk management products.