When electricity prices spike and contracts get complicated, it’s tempting to sign with the first energy broker who promises savings. But choosing the wrong one can lead to higher costs, hidden fees, and long-term frustration.
Before signing anything, businesses need to ask the right questions. Below is your essential guide to understanding what’s really on the table — and how to protect your bottom line.
What does an energy broker actually do?
An energy broker acts as a middleman between your business and energy retailers. They compare energy plans, negotiate deals, and sometimes manage ongoing supply contracts. On paper, they’re meant to save you time and money. In practice? It depends on how transparent they are.
Some brokers work independently, charging businesses a flat fee. Others receive commissions from retailers, which might affect whose interests they’re prioritising.
That’s why transparency is key — and why it’s vital to ask brokers upfront how they’re paid.
energy broker
Are they retailer-agnostic — or pushing preferred partners?
Not all brokers compare the full market. Some only work with a handful of retailers, meaning your quote may come from a limited pool.
Ask:
- How many retailers do they work with?
- Are they comparing offers from across the market or only from selected suppliers?
- Will they disclose all options, or just the ones that pay them commissions?
This can make or break the value they provide. A proper energy broker should act in your best interest — not the retailer’s.
energy broker
How do their fees work — and when are they paid?
One of the most overlooked parts of working with a broker is understanding the cost model. Some charge a fee per transaction. Others bake their commission into your electricity rate — and don’t always tell you.
Always ask:
- Is there an upfront fee or success-based pricing?
- Are their fees ongoing or one-off?
- If they earn commissions from retailers, how much, and is it included in your rates?
The Australian Energy Regulator has emphasised the importance of transparency in third-party energy arrangements, especially for small businesses. [source]
Do they offer ongoing contract management?
Many brokers promise ongoing support but disappear once the deal is done. Ask if they’ll help monitor usage, renegotiate rates as conditions change, or flag better opportunities.
A great energy broker builds long-term value, not just a quick win.
energy broker
Are they licensed, and do they follow Australian standards?
While energy brokers aren’t formally regulated in every state, trustworthy providers still align with industry standards. Look for:
- Membership with the Energy Broker and Consultants Association of Australia (EBCAA)
- Adherence to the Australian Energy Regulator’s voluntary code
- A documented privacy policy and data security procedures
These elements help confirm that your broker runs a serious, ethical operation — not a high-turnover sales desk.
What kind of reporting and insights will you receive?
If you’re managing multi-site operations, usage data matters. Ask about access to:
- Usage dashboards
- Bill validation reports
- Monthly or quarterly check-ins
These tools can help you track cost savings and catch anomalies, such as meter faults or billing errors, before they become expensive.
What’s the exit process?
Some broker agreements tie you into a multi-year engagement — even if your needs change or the broker stops delivering value. Always review the contract terms and ask:
- Is there a cooling-off period?
- Can I leave without penalty if the service doesn’t meet expectations?
- Do you retain full control over the energy account?
A flexible agreement shows the broker is confident in their service, not just their sales pitch.
Real-world red flags to watch for
Here’s what should set off alarm bells:
- Vague answers about commissions
- No written disclosure of the broker-retailer relationship
- High-pressure tactics to sign same-day
- Promises of ‘lowest rates guaranteed’ without proof
- No performance tracking or follow-up after the initial deal
The more a broker resists transparency, the less likely they’re acting in your best interest.
A final word on choosing the right broker
Energy deals aren’t just about price — they’re about partnership. A strong energy broker will help you plan ahead, keep your rates competitive, and make sense of a fast-moving energy market. Don’t settle for slick pitches. Ask the questions that matter. Compare offers. Demand clarity.
And above all: make sure the deal you’re signing today is one you’ll still be happy with a year from now.