Working with an energy broker can save Australian businesses serious money—if you pick the right partner and know what to watch out for. But too often, companies dive in without a clear understanding of how brokers operate, what their incentives are, and what traps to avoid.
Below, we break down the most common missteps businesses make when dealing with an energy broker, and how to make smarter, more strategic decisions instead.
Assuming All Energy Brokers Work the Same Way
Not all brokers are created equal. Some operate independently, giving you access to a wide range of retail energy providers. Others work on exclusive deals with a select few suppliers—which might mean fewer options or less competitive rates.
If your broker only presents one or two options without explaining why, that’s a red flag. You want transparency: who’s paying them, how they’re incentivised, and whether they’re acting in your best interest.
Before signing any agreement, ask:
- How many retailers do you work with?
- Are your commissions fixed or volume-based?
- Can you show pricing across multiple providers?
This helps ensure you’re getting genuinely competitive offers and not just being steered toward the provider that pays them the most. For more insight into broker models and how they differ across the country, check out this detailed comparison of energy broker platforms.
Failing to Check the Broker’s Licence or Industry Standing
In Australia, commercial energy brokering isn’t tightly regulated—but it doesn’t mean you shouldn’t be careful. Some brokers have a solid track record working with mid-to-large businesses and government contracts; others pop up overnight and vanish when something goes wrong.
One of the most frequent issues? Brokers who promise savings, sign you up to a multi-year deal, and disappear when things go south.
Protect yourself by:
- Requesting client testimonials or references
- Checking LinkedIn or ABN registration
- Searching reviews or published case studies
- Asking who will manage your account after sign-up
A bit of due diligence can save you from long-term pain—especially in volatile markets where contract flexibility is crucial.
Ignoring Hidden Fees or Contract Clauses
Many businesses fall into the trap of not reading the fine print. Some energy broker contracts include clauses that lock you into automatic renewals, restrict your ability to go direct in future, or impose early exit fees.
Others tie commission structures to usage levels, creating incentives for the broker to push you toward larger deals than you need.
Before agreeing to anything, ask for a complete breakdown of:
- How the broker gets paid
- Whether any supplier kickbacks apply
- What happens if you want to switch providers or plans early
This step is especially important if you’re reviewing energy broker offers during periods of high market volatility. Mistakes here can lock you into above-market rates for years. Learn more about what differentiates reputable energy broker models from commission-heavy setups.
Relying Solely on Retail Offers Instead of Exploring Wholesale Options
For larger organisations, especially those with multiple sites or high consumption rates, retail contracts might not always be the most cost-effective choice.
Some brokers are equipped to help you enter the wholesale market through pooled purchasing or direct spot-price exposure—but most only quote standard retail deals.
If your usage exceeds 1 GWh annually, ask your broker:
- Do you offer access to wholesale electricity markets?
- Can you help set up a power purchase agreement (PPA)?
- Have you worked with clients in our sector before?
By not exploring these options, some businesses overpay by 10–20% annually without realising it. According to Energy Consumers Australia, energy literacy among SMEs is still low—leaving too much trust in the hands of salespeople.
Thinking One Contract Solves Everything
A good energy strategy is not “set and forget.” Prices shift. Network tariffs change. Usage patterns evolve. One of the biggest mistakes businesses make is signing a 3-year deal and never revisiting it—only to find they’ve missed market lows or tariff review opportunities.
Even if you’ve landed a good rate, regular checks can reveal:
- Changes in demand patterns that affect capacity charges
- New government schemes or incentives
- Opportunities to lower peak usage
Your broker should be proactive, not reactive. They should offer annual or biannual reviews, flag new risks, and keep you informed of any bill shocks before they hit.
For brokers that offer this kind of ongoing service, see how energy broker platforms stack up in terms of ongoing account management and risk monitoring.
Not Monitoring Broker Performance Over Time
Finally, a huge oversight: once a broker sets up your contract, most businesses never evaluate their performance. But just like any service provider, brokers should be accountable for outcomes.
Set clear expectations at the start:
- Will you report on annual savings?
- Will you benchmark us against similar businesses?
- Will you support our energy audits or emissions reporting?
If not, you may end up with a partner who only shows up when it’s time to sign a new contract—and nowhere in between.
Wrap-Up: Get Smart, Not Sold
Choosing the right energy broker can unlock real value—but only if you avoid the common traps. Ask tough questions. Demand clarity. And never assume your broker is working harder than you are to find the best deal.
Whether you’re a national retailer, industrial site manager, or small logistics firm, smart energy decisions start with smart partnerships.
Want to benchmark your current energy deal? Search beyond the default options, compare models, and stay alert to industry changes.