Energy Broker Bonds

About one-third of U.S. states have deregulated their energy markets, which means brokers can use competitive rates to encourage clients to switch energy providers. This change created a need for greater industry regulation, including a surety bond requirement for energy brokers in many states. 

What Is an Energy Broker Bond?

Energy brokers need to be bonded in many states to guarantee they will follow rules and regulations. An energy broker bond protects the general public from malpractice and protects public agencies from financial loss.

Note: These bonds differ from utility deposit bonds, which are used to guarantee payment of utility services. 

How to Get an Energy Broker Bond Fast

SuretyBonds.com is the nation’s leading surety provider. Our experts provide the quickest, easiest and most accurate bonding services. Apply today to receive a free quote within one business day! 

Once you pay your invoice, we’ll issue your energy broker bond immediately. Choose our overnight shipping at checkout if you’re in a rush. 

State-Specific Bonding Requirements for Energy Brokers

Each state typically has its own bond form, meaning each state requires a separate license. If you operate in multiple states, you may need to secure and post a bond in each state.

Energy broker bond costs also vary greatly by location. Select your state below to find more information for your area:

How Does an Energy Broker Bond Work?

An energy broker surety bond is a legally binding contract between three parties:

1. Principal: The energy broker or consultant purchasing the surety bond
2. Obligee: The state licensing agency requiring the bond 
3. Surety: The insurance provider issuing the bond and backing the principal

If an energy broker breaches the bond terms:

• The state can file a claim to collect money for damages or lost funds. 
• The surety company will validate the claim and make a payment up to the total bond amount. 
• The energy broker must repay the surety company.

What Does an Energy Broker Do?

Energy brokers, also known as energy consultants, act as intermediaries between energy producers and energy consumers. They do not have title to gas or electricity, they simply act as a middleman. Commercial energy brokers provide services to businesses while residential brokers service homes. 

How to Get an Energy Broker License 

1. Research state requirements: Contact the state department. Each state will have a unique licensing process and application requirements. 
2. Apply for your license: Complete application materials as specified and pay registration fees. 
3. Prove financial strength: As part of the application, you will likely need to demonstrate financial health and industry experience. Typically, this means getting a surety bond, but some states accept a letter of credit instead.