Business energy bills can feel like a moving target. One quarter they’re manageable. The next, they spike unexpectedly. For many Australian companies, this inconsistency has opened the door to a popular service—energy brokers.
Brokers promise to save businesses time and money by comparing offers and locking in contracts. But what many businesses don’t see are the hidden costs buried behind some of these deals.
This article explores how to evaluate an energy broker, avoid hidden traps, and make smarter procurement decisions in 2025.
What Do Energy Brokers Actually Do?
At a basic level, an energy broker acts as the middleperson between your business and electricity or gas retailers. They assess your usage data, compare retail offers, and recommend a deal. In theory, this makes it easier for you to focus on running your business without drowning in rate sheets and contract fine print.
However, how brokers get paid significantly influences the advice you receive. Many operate on commission—meaning their earnings are tied to specific retailers. That doesn’t always align with your best interests.
Hidden Cost #1: Commission-Based Bias
The biggest cost is the one you can’t see—bias.
A commission-based energy broker may receive payment from the retailer they recommend. The more contracts they sign, the more they earn. This creates an incentive to favour higher-commission offers over lower-cost ones.
For example, a 1-cent difference in tariff might not seem like much. But over a 12-month contract for a multi-site retailer, that’s tens of thousands of dollars lost—just to fatten someone else’s margin.
Hidden Cost #2: Limited Market Comparison
Many brokers only quote from a shortlist of preferred retailers. You might think you’re seeing a full market comparison, but you’re actually just looking at offers from a handful of providers who have commercial agreements in place.
A reliable energy broker will give you access to a wider pool of options and show their comparison methodology upfront. If they don’t, you could be missing out on far better rates elsewhere.
Read how limited broker panels affect pricing
Hidden Cost #3: Automatic Renewals and Exit Fees
Some businesses sign with brokers and don’t realise their contracts auto-renew. These renewals often include updated rates—usually higher—and can come with early exit fees if you try to switch out mid-term.
This becomes a major issue for companies planning to expand, downsize, or relocate. A good energy broker will provide reminder alerts and review opportunities before renewal windows close. If your broker doesn’t, you’re on your own when the rate changes.
Hidden Cost #4: Overlooking Operational Changes
Energy contracts are typically locked in for 12–36 months. But few brokers account for future changes in your business.
Let’s say your business is expanding, and you expect a 30% increase in consumption within the year. Or maybe you’re introducing new shift patterns that concentrate usage during off-peak hours.
If your energy broker hasn’t accounted for this, you might be stuck with a plan that no longer fits—and you’ll wear the cost of the mismatch.
Hidden Cost #5: Lack of Ongoing Support
Many brokers sign the deal and disappear. They don’t track your usage, monitor for billing errors, or keep an eye on contract performance.
The absence of post-signing support can leave businesses paying higher-than-expected costs due to demand spikes, billing discrepancies, or missed market drops.
The best brokers treat your energy deal as a living contract—something to be monitored, not just filed away.
To see what a proactive energy broker looks like, compare your current provider’s approach to industry benchmarks.
What Should You Ask Before Signing?
To protect your business, ask the right questions:
- How do you get paid?
Commission isn’t inherently bad, but it should be disclosed. - How many retailers do you compare?
You want at least five reputable providers in each state or territory. - What’s your exit clause?
Confirm if you’re locked in, and whether there are break fees. - Do you provide ongoing monitoring?
Real value comes from usage tracking, bill audits, and renewal alerts.
When Does a Broker Actually Add Value?
A well-informed energy broker can help businesses in situations like:
- High-volume energy use across multiple sites
- Operations spread across different states
- Complex tariff structures (e.g., demand charges)
- Access to interval meter data and consumption analytics
- Switching to green energy or negotiating Power Purchase Agreements
In these scenarios, the broker’s experience and data capabilities can lead to tangible savings.
You can evaluate how much support you’re receiving by comparing your broker’s service offering to this energy broker checklist.
Don’t Be Fooled by “Free” Services
Nothing is ever truly free. If a broker says their service is free, ask how they’re compensated. Someone is paying them—and often, it’s the energy retailer passing that cost onto you through inflated rates.
Transparent pricing models are always safer. In many cases, paying a flat consulting fee upfront can result in better long-term outcomes than commission-based alternatives.
Wrap-Up: Transparency Is the Real Currency
Australian businesses are under growing pressure to manage operating costs without cutting corners. Energy is one of the few areas where small changes have outsized impacts.
The right energy broker should help you reduce cost and simplify procurement. But the wrong one can cost you far more than you expect—quietly, invisibly, and over years.
If you’re unsure about your current contract or broker arrangement, read this comprehensive energy broker comparison to see how your provider stacks up.
It might just be the smartest five-minute read you invest in this financial year.