Energy broker vs energy consultant: what is the difference?
The two titles are often used for the same business. The difference that matters is not the name but what the firm is hired to do, how it is paid, and what it checks.
An energy broker arranges supply contracts between a business and retail electricity or gas suppliers, and is usually paid a commission by the supplier. An energy consultant advises on a wider scope, such as procurement strategy, risk, budgets, tariffs and sustainability, and is more often paid a fee by the client. In practice many firms do both. New York's law, for example, defines energy brokers and energy consultants separately and requires both to register and disclose their compensation. Discovery Energy Utility Audits combines procurement with tariff audits, bill pay and reporting, and discloses its procurement fee.
01 / 05
Broker and consultant compared
| Question | Energy broker | Energy consultant |
|---|---|---|
| Main job | Find a supplier and place a contract | Advise on strategy, risk and cost, which may include placing contracts |
| Usually paid by | The supplier, through an adder in your price | You, through a fee (sometimes a supplier commission too) |
| When paid | Over the term as you use energy, or upfront at signing | Monthly, per project or on retainer |
| Scope | Supply contracts in the states where it is licensed | Can include budgets, hedging, tariffs, demand response, renewables, reporting |
| Data kept | Contract terms and renewal dates | Varies; ask who owns the data at the end |
| Bills checked? | Rarely beyond the supplier invoice | Sometimes; ask whether delivery charges are tested against the tariff |
02 / 05
Why the payment model matters more than the title
A commission paid by the supplier is not a bad thing by itself, but it shapes incentives. If the commission is a per-unit adder, the broker earns more on longer terms and larger volumes. If it varies by supplier, the recommendation can follow the commission. If it is paid upfront, the broker is paid in full before the contract has delivered anything.
A client-paid fee removes those pulls but has to be judged on what it covers. The useful question for either model is the same: what is the total compensation over the term, in dollars, and is it the same whichever supplier wins? Discovery's energy broker fees guide shows how to work it out.
03 / 05
Which one does a multi-site company need?
A single site in one deregulated state with a simple load can do well with a good broker. A multi-site company usually needs more than either title suggests:
- Coverage in every state where it has sites, which depends on the provider's licenses and registrations.
- A tariff check on every account, including those in regulated states, because supply contracts do not fix a wrong rate class or rider. See audit vs procurement.
- One record of accounts, contracts and bills, so renewals, payments and savings are tracked in one place. See the TaraBase platform.
- Disclosed compensation, in writing, before signing.
The types of utility cost providers page sets brokers and consultants beside auditors, software platforms and bill-pay vendors.
04 / 05
Questions to ask either
Where are you licensed or registered?
List every state where you will act for us.
How are you paid, by whom and how much?
Per unit, per month or upfront, in dollars over the term.
How many suppliers will you invite?
And will we see every bid side by side on the same terms?
Do you check our utility bills?
Delivery charges, rate class, riders and capacity tags, not just the supplier invoice.
Who owns our data?
Contract and usage records should come with us if we leave.
05 / 05
Questions buyers ask
Is an energy consultant better than an energy broker?
Not by title. Judge any firm on its coverage, its compensation, how it compares bids and whether it checks your bills. Many brokers advise and many consultants place contracts.
Do energy consultants take supplier commissions?
Some do, alongside or instead of a client fee. Ask, and get the answer in writing.
What is Discovery Energy, a broker or a consultant?
In procurement, Discovery Energy acts as an energy broker: it runs the RFP, places contracts with suppliers and tracks them to renewal. Its energy broker licenses and registrations are held by Energy Auction Exchange, LLC. Discovery is also an independent utility bill audit and Utility Cost Intelligence firm. Its procurement fee is a disclosed fixed monthly fee or supplier-paid commission; its audits are contingency-based.
Sources
- New York Public Service Law §66-t, definitions, registration and compensation disclosure for energy brokers and energy consultants.
- New York Department of Public Service, Uniform Business Practices (December 2025), definitions of energy broker and energy consultant.
Find out what your bills should have cost.
Send one recent bill per site, or a list of accounts. We tell you where we expect findings before you sign anything. No upfront audit fee.