What is the difference between a broker, a consultant, and a supplier?
Supplier: This is a company that actually buys power or natural gas and resells it.
They usually have their own sales force and a company web site.
Things to check out about a supplier: How big is the company, how long has it been doing business in New England, get references from customers.
Broker: This is usually a single person or a smaller firm that is licensed to act as a middleman between consumers and suppliers. They do not actually buy the power or natural gas themselves. They usually get a per-killowatthour or per-therm fee when you sign a contract, which may be paid to them by the supplier. Some brokers will shop around for the best deal for you and others only represent a single supplier. Ask to see quotes from multiple suppliers. If a broker tells you a particular supplier won't give you a quote, check it out with the supplier – some brokers will not pass on quotes if the supplier won't include the broker's fee in the quote. Brokers usually do not offer much in the way of customer service after you sign the contract.
Things to check out about a broker: Are they licensed in Massachusetts? What is their fee, and how is it paid? Ask them for quotes from multiple suppliers and check it out if they say they can't get a quote from a particular supplier. Ask for references for customers and ask for customers who get their supply from different suppliers. What services do they offer – can you contact them with questions after the contract is signed?
Consultants: Consultants may be very similar to brokers. They may charge you a flat fee, or a per-kilowatthour or per-therm fee.
Things to check out about a consultant: Similar to a broker. Consultants are not required to be licensed by the Commonwealth of Massachusetts. Ask for references and make sure you understand the scope of what they are doing for you and how they will be charging you. Consultants frequently offer additional services that may be very useful, such as bill auditing and energy auditing, but make sure you understand what you're buying.
