Retail Energy CEO: Broker Fees In Excess of Supplier Margins "Unsustainable"; "Must Be Addressed"
September 11,2015
In a blog post on the company's website detailing challenges to retail energy suppliers, GDF SUEZ Energy Resources NA President and Chief Executive Officer Sam Henry said that broker fees that are in excess of the supplier's margin, "creates an unsustainable situation."
"More than half of all the electric customers in the deregulated states are served through brokers. Two years ago when competition for customers was particularly fierce, there were situations where broker’s fees were higher than the margin of the REP, even though the provider had invested in systems and was taking a substantial risk. This creates an unsustainable situation, and is an issue that must be addressed," Henry wrote
Henry's post also addresses changing regulations and protocols, the movement to distributed energy, service offerings beyond commodity supply, supplier differentiation, tightening credit, default service rates, and opening new markets to choice