First, a person who is a broker earns their living buying and selling products for other people, businesses, or governments. They also negotiate the best deal for their clients. An energy broker is no different, only the product they are negotiating are energy products. An energy broker may go by other titles as well, such as an electricity broker or energy trader.
How to Become an Energy Broker
There is no minimum educational requirement to become an energy broker. However, almost 75% of those surveyed held a bachelor’s degree according to O*NET OnLine. Another 10% reported having earned an associate’s degree and less than 10% had some college but yet to earn a degree. Degrees that contain training in sales and marketing are helpful in gaining the skills you’ll need to be a successful broker. Also, some states require a license. You will want to research if your state requires a license and what requirements you must meet.
Some states may also have more opportunities for brokers than others. For example, you’ll want to research if your state has energy or gas company options for its residents and commercial residents. You can visit CompetitivEenergy.org for a state-by-state breakdown.
Job Description of an Energy Broker
Energy brokers help reach energy deals between a supplier and their client. Energy brokers stay current with market trends and conditions and analyze how those factors impact the energy industry. They use this information to consider energy’s current worth and future worth to estimate a fair cost for energy. Next, they represent their clients to negotiate a fair cost. These brokers will then explain contracts and terms to their clients to ensure the deal meets their expectations.
Along with keeping up with market trends and negotiating on behalf of their clients, they must also have an entrepreneur mindset. To gain clientele, they work to build relationships and would network to grow their business as well. They must also be technically savvy, as they would conduct research online and may also use various computer programs on a daily basis.
Energy Broker Career Video Transcript
Energy brokers are professional salespeople who help power companies and businesses lower their energy costs by negotiating good deals on electricity and natural gas, and other sources of power. Brokers spend the majority of their time conducting research on energy markets, tracking energy usage, communicating with clients and suppliers, and preparing proposals.
Communication and decision-making are critical skills in this often highly, competitive field. When their client is a business, energy brokers try to reduce operational costs by securing lower energy prices. When working for utilities that provide residential energy, brokers help to reduce their client’s energy costs by securing lower prices for natural gas and other sources of power.
In both sectors, brokers earn their commission by negotiating a contract between their client and an energy producer. Typically, they only get paid after a deal is finalized. Whether they’re self-employed or work for a large multinational firm, most brokers work in offices for 40 hours or more a week. Energy brokers typically have a bachelor’s degree but some find employment with an associate’s degree or partial college credit.
Career Article Resources
National Center for O*NET Development. 41-3099.01. O*NET OnLine.
The career video is Public Domain from the U. S. Department of Labor, Employment and Training Administration.