How to Avoid Energy Broker Scams
Not all energy brokers have your best interests at heart. While some genuinely help businesses secure fixed rates for budget certainty and stable energy costs (with potential savings as a bonus), others may not be as transparent. Some brokers push what seems like a great deal—only for you to realize later that it was a scam.
So, how can you be sure you're locking in a fair energy rate? Who can you really trust? We break it all down in this month’s blog.
Do Your Due Diligence
Check Licensing: Verify if the energy broker is properly licensed in your region to operate as an energy supplier.
Online Reviews: Search for reviews on independent platforms to assess the broker’s reputation and customer service.
Business Standing: Investigate the company’s history and financial stability to ensure they are not likely to go out of business unexpectedly.
Compare Multiple Quotes
Get Quotes From Several Brokers: Don’t rely on just one quote, compare offers from different providers to find the best price and terms.
Understand the Details: Pay attention to the energy plan details including fixed or variable rates, price per kWh, potential fees, and contract terms.
Be Wary of Red Flags
High-Pressure Sales Tactics: If a broker is overly aggressive or tries to rush you into a decision, be cautious.
Guaranteed Savings Claims: Avoid brokers who promise unrealistic or guaranteed savings without clearly explaining the conditions.
Upfront Fees: Legitimate broker typically do not ask for large upfront payments for their services.
Letter of Exclusivity: Read Before You Sign Some energy brokers may ask you to sign a Letter of Exclusivity, which grants them the exclusive right to negotiate energy contracts on your behalf.
Unclear Contracts: Carefully review the contract before signing, ensuring you understand all terms and conditions.
Ask Important Questions
About Their Supplier Network: Ask who their energy suppliers are and how they select them to ensure reliable service.
Price Fluctuation Risks: Understand how your energy bill might change based on market fluctuations.
Customer Service Availability: Confirm the broker’s customer service hours and contact options.
Know Your Rights
Cooling-Off Period: Check if your jurisdiction provides a cooling-off period where you can cancel a contract without penalty if you change your mind.
Switching Process: Understand the process for switching energy providers and any potential fees involved.
I hope this list can provide you with more confidence on your decision to work with an energy broker.
If you are looking to work with an energy broker for your buildings in New England or New Jersey, you can always reach out to us for a free consultation.