The rising need for smarter energy decisions
With electricity and gas prices spiking across Australia, businesses are under pressure to make smarter, faster decisions about their energy supply. Many are turning to an energy broker to secure competitive rates, manage contract renewals, and cut through the fine print. But do they actually save you money — or just add another layer to the cost?
Let’s cut through the noise and take a hard look at what brokers really offer, how they work, and when they’re worth it.
What does an energy broker do?
An energy broker acts as a middleperson between a business and energy retailers. Their job is to shop around on your behalf, comparing rates from multiple suppliers and negotiating deals that suit your usage profile. Brokers work with everyone from small cafés to national logistics companies, aiming to reduce overheads and simplify contract management.
Some brokers also assist with:
- Usage audits and tariff analysis
- Bill validation
- Renewable energy integration
- Demand management strategies
While this sounds helpful on paper, the devil’s in the detail — especially around how brokers are paid.
Commission vs fee: how brokers really make money
The core question many businesses don’t ask is: who’s paying the broker?
Most energy brokers in Australia earn their keep via commissions from the energy retailer. That means your business doesn’t pay them directly — but it does indirectly, as the retailer often builds that cost into the rates they offer.
The more kilowatt-hours you use, the more the broker earns.
That raises questions about conflict of interest. Is the broker recommending the most cost-effective plan, or the one that pays them best?
Some brokers offer a flat-rate consultancy model instead, where you pay a transparent service fee for independent advice. These models are rarer but preferred by businesses wanting full visibility and control.
For a side-by-side comparison of energy brokers using real-world examples, check out this breakdown:
energy broker
When an energy broker can save you money
Despite concerns, the right broker can genuinely deliver savings. Here’s when that happens:
1. Your business has complex or high-volume energy needs
Brokers can analyse half-hourly usage data and structure a deal that fits your peak times and demand profile. This is particularly useful for manufacturers, hospitality venues, and data centres.
2. You don’t have the time (or appetite) to negotiate directly
Retailers often offer “matrix rates” to direct customers — generic pricing that leaves money on the table. A broker, by contrast, can tap into hidden market rates or facilitate competitive bidding.
3. You’re nearing the end of an energy contract
Brokers can time your renewal for maximum leverage. Some track the wholesale market and advise when to lock in a fixed rate versus float.
Want proof? One Queensland-based hotel chain reportedly shaved $14,000 off its annual bill through competitive brokering. No rebrand. No usage change. Just smarter contracting.
When using a broker might cost you more
Here’s the catch: brokers aren’t magicians.
If your usage is low or consistent year-round, you may not need their service — and a standard market offer from a major retailer might do just fine.
Also, beware of:
- Opaque commission structures: Ask to see how the broker gets paid.
- Locked-in contract terms: Some brokers sign you onto 3-year deals with break fees.
- Pushy tactics: Ethical brokers should act in your best interest, not the retailer’s.
To help you assess broker value, ask questions like:
- “Can I see a commission disclosure?”
- “How many suppliers are you comparing?”
- “Can I walk away if I’m not happy?”
These help weed out sales reps disguised as advisors.
How brokers compare to DIY comparison sites
It’s tempting to plug your business into a comparison website and call it a day. Tools like Energy Made Easy and Compare the Market offer simple snapshots — but they don’t always reflect behind-the-scenes wholesale deals.
Here’s the difference:
| Broker | Comparison Site |
|---|---|
| Negotiates custom rates | Shows public rates only |
| May access wholesale or tender pricing | Only lists participating retailers |
| Support with contracts & disputes | Purely informational |
| Can be biased by commissions | Also may earn from referrals |
Ultimately, brokers offer a more curated experience — but that comes with trade-offs.
The truth? Brokers aren’t good or bad — they’re a tool
Used wisely, an energy broker can save you thousands and take the stress out of energy procurement. Used blindly, they can lock you into costly deals or deliver limited savings for high commissions.
If you decide to engage one, do your homework:
- Get multiple quotes.
- Ask how they’re paid.
- Don’t feel pressured to sign anything on the spot.
And above all, compare their deal against the market yourself — even if it’s just once a year.
For an in-depth review of broker performance and comparison metrics, refer to this trusted source:
energy broker
Final thoughts: Be proactive, not reactive
In a volatile energy market, waiting for your contract to expire is a costly mistake. Start the conversation early. Use brokers, tools, and advisors as needed — but stay in the driver’s seat.
Need help understanding how broker models stack up? Start here:
energy broker