Energy bills can be a silent killer for Australian businesses. From cafes in Collingwood to warehouses in Welshpool, power costs cut into profit margins faster than most operators realise. This is where an energy broker can become a game-changer—if you choose wisely.
But here’s the catch: not all brokers work the same way. Some are aligned with your savings goals. Others? Let’s just say their motivation may lie more in the commissions they collect than the deals they secure.
What Does an Energy Broker Actually Do?
At its core, an energy broker acts as the middleman between your business and electricity retailers. They don’t generate or distribute energy themselves—they compare deals, negotiate terms, and help lock in better contracts.
Think of them like insurance brokers, but for your power bill.
They might:
- Analyse your current usage.
- Compare quotes from multiple energy retailers.
- Provide recommendations on plans that reduce your cost per kWh.
- Handle the switching process for you.
Sounds like a win, right? But as the saying goes, the devil’s in the commission.
Understanding the Energy Broker Commission Model
Here’s where it gets interesting. Most energy broker businesses in Australia earn their income from the retailers—not from the clients they advise.
Retailers pay brokers commissions (usually ongoing) for each business they sign up. The broker earns more if they direct you toward higher-margin plans or retailers with better kickbacks.
So while they might present multiple quotes, the comparison might be weighted towards deals that reward them—not necessarily you.
That’s not illegal. It’s not even unusual. But it does mean that transparency is critical.
A truly independent broker will:
- Disclose how they get paid.
- Provide a detailed quote breakdown.
- Focus on long-term savings, not just getting the contract signed.
Here’s a deeper industry breakdown of broker payment models from CHOICE, the Australian consumer advocate.
Are Energy Brokers Worth It for Small Businesses?
If you’re running a café, gym, retail outlet or even an office, chances are you don’t have the time—or leverage—to negotiate directly with every retailer on the market.
This is where the right energy broker can actually save you hundreds, if not thousands, over the contract term.
Here’s how:
- They know which retailers are offering quiet discounts not advertised online.
- They understand meter types and tariffs—so you don’t get stuck on the wrong rate.
- They’ll often handle contract renewals before you’re rolled into expensive default rates.
But here’s the trick: ask your broker what they’ll do for you after the contract is signed. The best ones will continue to monitor market shifts and let you know when it’s worth switching again. The worst ones? You’ll never hear from them after they get their commission.
What to Ask Before Signing with an Energy Broker
Choosing a broker should feel more like hiring an accountant or a bookkeeper—not picking a door-to-door sales rep.
Use these questions to cut through the noise:
- Who pays you? If the broker is paid by the retailer, ask for specifics.
- Are you offering the full market? Some only show a handful of providers.
- Can I see the wholesale vs. retail rate? That helps spot hidden markups.
- What happens at the end of the contract? Watch out for passive rollovers.
These questions won’t just protect you—they’ll reveal how much the broker values your long-term business over their short-term bonus.
Why Energy Brokers Should Be Held Accountable
Here’s the bottom line: the energy market in Australia is complicated—but it’s not unmanageable. Businesses deserve honest guidance, not smoke and mirrors.
An energy broker who is transparent, proactive and aligned with your goals can be one of the most valuable partners in your business operations. But one who’s driven purely by commissions? They’ll cost you more than they’ll save.
Final Thought
The next time your electricity contract is up for renewal—or you’re just sick of inflated bills—don’t default to the first comparison site or cold caller.
Do your homework. Ask smart questions. Find a broker that puts your bottom line ahead of their back-end incentives.