Intro
Any time money is involved, people have questions. And in energy, commissions tend to sound more mysterious than they actually are.
If you’re considering partnering with RePulse Energy—or you’re just curious how the economics of deregulated energy work—this post is meant to give you a clear, no-nonsense overview.
This is not a contract. There are no promises here. Just a practical explanation of how commissions work in this industry and where value is actually created. If you can understand how real estate agents or insurance brokers get paid, you’ll understand this too.
1. Where the Money Comes From (Big Picture)
In deregulated states, electricity and natural gas are sold by competitive suppliers, not just utilities. Those suppliers:
Compete on price
Compete on contract structure
Compete on risk tolerance
But they don’t want to find every customer themselves. So they pay brokers, consultants, and referral partners to help:
Source customers
Educate them
Structure contracts properly
Reduce churn and risk
Commissions are paid by the energy supplier, not directly by the customer.
2. What a Commission Is (and Isn’t)
At a high level, commissions are usually calculated as: $/kWh (or $/MMBtu) × usage × contract term. A few important clarifications:
It’s not a one-time finder’s fee
It’s not tied to utility delivery charges
It’s not paid unless a contract is executed
It’s typically earned over time, not all upfront
In other words: You only get paid when a customer actually switches and stays live.
3. Why Suppliers Are Willing to Pay
Suppliers aren’t charities. So why do they do this? Because a good partner:
Lowers customer acquisition costs
Improves contract fit (fewer early terminations)
Reduces billing disputes
Increases retention
A poorly educated customer is expensive. A well-matched customer is profitable. That’s what commissions are really paying for.
4. Typical Commission Structures (High Level)
While structures vary by supplier, market, and product, most commissions fall into one of three buckets:
a) Fixed Adder: A small fixed amount built into the rate.
b) Usage-Based: Paid monthly based on actual consumption. (Note: this is the most common.)
c) Hybrid: Some portion upfront, some paid over time.
The exact structure depends on: contract length, customer size, market conditions, and risk profile. There is no “standard”, which is why transparency matters.
5. Why This Isn’t Guaranteed (and Shouldn’t Be)
Commissions in energy are not guaranteed. They depend on:
The customer staying in business
Usage matching expectations
Contracts not being terminated early
Regulatory stability
Anyone telling you otherwise is overselling it. That’s also why long-term trust beats short-term arbitrage in this space.
Final Thoughts
Energy commissions aren’t complicated — they’re just opaque if no one explains them.
At RePulse, our philosophy is simple: (1) align incentives, (2) be explicit about structure, (3) avoid surprises for anyone involved
If you understand how value is created, the economics take care of themselves. Learn more at: repulseenergy.com