A commercial energy contract defines the price you pay for electricity or natural gas supply over a defined term. The terms you agree to at signing determine your cost for the next 12–36 months — and the consequences if circumstances change. Understanding what you're signing matters.
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Key Terms in Every Commercial Energy Contract
Supply rate (the price per kWh or therm), contract term (length), start and end date, auto-renewal clause (what happens at expiration), early termination fee (ETF — often calculated on remaining contract value), demand charge treatment (how your peak demand affects supply pricing), and passthrough provisions (capacity, ancillary charges that suppliers can add on top).
Auto-Renewal Traps
Many commercial energy contracts include auto-renewal clauses that lock you into a new term at an undisclosed rate if you don't notify the supplier by a specific date — often 30–90 days before expiration. Missing this window can trap you in an above-market contract for another full term. We track expiration dates for every account we manage.
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Early Termination Fee Structures
ETF structures vary significantly. Some contracts charge a flat fee ($500–$2,000). Others calculate the ETF on the remaining value of the contract — which can mean tens of thousands of dollars for a large account with 18 months remaining. Read every ETF clause before signing.
Passthrough Language
Some supply contracts include passthrough provisions that allow suppliers to pass additional costs through to customers beyond the quoted rate — capacity market adjustments, ancillary service charges, line loss factors. These can add meaningful cost and are often buried in contract appendices. We flag every passthrough clause.
What Good Contract Terms Look Like
A clean commercial energy contract: fixed price per kWh, clear start and end dates, a reasonable cancellation notice requirement (30 days), a flat ETF or no ETF for utility-driven changes, no open-ended passthrough provisions, and a simple auto-renewal opt-out process. We negotiate for these terms and won't recommend contracts that don't meet basic standards.
Frequently Asked Questions
How does a commercial energy broker get paid?
Brokers are compensated by the supplier you choose — a small per-kWh fee built into the contract rate. This fee exists in every supplier's pricing regardless of whether a broker is involved. You pay nothing out of pocket.
How many suppliers will you get quotes from?
We submit to 30+ licensed retail energy suppliers active in your state. Not all will quote every account — load size, credit profile, and industry classification affect who bids. We pull from the full available market.
How long does the process take?
From data collection to competing offers typically takes 3–5 business days. Contract execution takes another 1–2 business days. Service transition happens on your next billing cycle — no interruption.
Is there a contract with the broker?
No. You authorize us to collect your usage data and solicit quotes on your behalf. There's no fee arrangement, no retainer, and no commitment until you choose a supplier offer to execute.
What if I'm currently under contract?
We'll review your existing contract terms, note the expiration window, and initiate a quote process 6–9 months before expiration. If there's an early termination option that makes economic sense, we'll flag it.