What Is Energy Matrix Pricing?

Energy matrix prices are rates published by retail energy suppliers and offered to energy brokers for resale. These prices are often published on a daily, weekly, or monthly basis and are usually utility-specific. Most suppliers require an agreement to be in place with the broker before they will release their matrix pricing as it is proprietary and protected under a confidentiality agreement.

Retail suppliers publish matrix pricing for brokers to make it simpler for a broker to be able to transact with a customer for electricity or natural gas supply. In fact, brokers are allowed to mark up matrix rates and earn the difference between the final customer price and the matrix price as a commission.

Matrix rates vary differently between retail suppliers and are often organized in a different manner as well. Because matrix pricing is unique to each supplier, brokers often see discrepancies in prices by market. Some suppliers include local taxes in their matrix rates, and some do not. The rules of each matrix are up to the issuing supplier. Suppliers typically organize matrix pricing by the following categories:

• Customer Type

• State

• Utility

• Rate Code

• Contract Start Date

• Customer Usage Volume

• Customer Load Profile

How Technology Is Changing The Retail Energy Sector

Technology is changing the way we do business throughout the world, and although the retail energy sector might be lagging, it is no different. Energy brokers who take advantage of technology have an unfair advantage over those who do not.

Overview

The retail energy industry has been late to adopt technology as a way of transacting business. Many energy brokers and suppliers still process energy quotes and contracts via the telephone and email. As technology continues to develop and grow, the retail energy industry is beginning to transform. Today, there are online energy brokers who allow residential and small commercial customers to transact with suppliers on their websites. Other brokers are implementing reverse-auction functionality where suppliers bid on customer contracts in real-time. As this industry continues to evolve, it is important to be positioned for success with the right technology.

Workflows

An energy broker software application, like Edge, allows brokers to be at the forefront of this technological revolution. Not only does a system like Edge allow brokers to replace manual processes with automated workflows, but it also streamlines the broker-supplier relationship. Applications such as Edge’s RFP enables brokers to submit custom price requests to multiple suppliers with the click of the mouse. On the other end, suppliers can turn around price quotes directly in the Edge system, allowing brokers to manage opportunities from a single dashboard.

Utility Data

Furthermore, access to utility systems such as the Eligible Customer List (ECL) has given brokers an unprecedented opportunity to create prospect lists, confirm customer utility data, and structure pricing. Edge’s ECL application is another example of how technology can transform the way you transact business. In the current climate, finding the lowest rates for your customers is paramount. Utilizing the ECL, Edge clients can automatically calculate load-factor to determine the best way to quote a customer.

Payments

Additionally, many energy brokers have commission pay structures in place to pay agents, channel partners, sales employees, and referral partners. Trying to manually reconcile supplier commission payments while figuring out who to pay is an operational nightmare. Systems like Edge allow energy brokers to process commissions automatically. Not only will our system identify errors in supplier commission statements, but it will also calculate multiple levels of sales commissions based on your pre-set parameters.