Energy bills aren’t what they used to be. Between market fluctuations, network charges, and sneaky retail markups, Australian businesses face serious pressure to manage their electricity and gas costs. That’s where an energy broker often enters the conversation—promising to simplify the process and save you money.
But while many brokers deliver real value, not all work in your favour. This article unpacks what energy brokers do, the benefits and pitfalls of using them, and what red flags to watch out for.
What Does an Energy Broker Do?
An energy broker helps businesses source and secure electricity or gas contracts. They compare rates, liaise with multiple energy retailers, and present options that (hopefully) meet your usage profile and risk tolerance.
Most brokers get paid by the retailer via commissions, though some charge businesses directly or offer hybrid models. Either way, it’s crucial to understand how their income is structured—because that often influences the advice you get.
The Value of Working with an Energy Broker
1. Time-Saving Support
Running a business leaves little time to read through 12-page contracts or call up five different retailers for quotes. Brokers do the legwork—gathering prices, breaking down contract terms, and recommending deals based on your usage data.
For many small-to-medium enterprises, this convenience is worth its weight in gold.
2. Better Access to the Market
Energy brokers typically have direct access to retail account managers, live tariff feeds, and even wholesale pricing options. They can often secure offers that aren’t available through public comparison sites.
If your broker is good—and working in your best interest—they should also offer flexible options suited to your business load profile, not just a one-size-fits-all solution.
3. Contract Smarts
An experienced broker can help you avoid traps buried in the fine print. Demand charges, take-or-pay clauses, rollover provisions—these details are easy to miss and costly if misunderstood.
A responsible energy broker will break these down clearly, helping you choose based on long-term value rather than headline rates.
The Risks of Relying on Energy Brokers
1. Commission-Driven Decisions
Let’s be blunt: many brokers are paid by the retailers they recommend. That creates a tension between acting in your interest and selling what pays best.
Unless your broker discloses their commission arrangements—or you ask directly—you may not realise the advice is shaped by backend payments, not business outcomes.
You can avoid this trap by reviewing how one energy broker compares with others based on client focus, pricing transparency, and long-term value:
2. Lack of Customisation
Not all brokers are analytical. Some send cookie-cutter deals to hundreds of clients, regardless of sector, load shape, or operational hours. That might leave your business locked into a contract that’s cheaper on paper—but more expensive overall.
Ask: Did the broker assess your usage patterns? Have they explained whether a time-of-use plan would work better than a flat rate? Did they compare fixed vs variable contract terms?
If not, they’re working quickly, not thoughtfully.
3. No Support After the Contract
Many businesses assume brokers will continue to assist once a deal is signed. That’s not always the case. Some brokers vanish after contract execution—leaving you without support for billing issues, renewals, or mid-term adjustments.
Check if the broker offers post-sale service. Can they help resolve disputes? Do they review your usage annually? Are they proactive in managing renewals?
One of the best ways to evaluate this is to compare brokers based on long-term engagement, not just quote delivery:
Key Questions to Ask Your Energy Broker
Before signing anything, ask these direct questions:
- How are you paid—and by whom?
- Do you offer quotes from all available retailers?
- Will you help manage my contract during the term?
- Can I see examples of how you’ve saved clients money beyond pricing?
- Do you provide usage reporting or analytics?
If a broker can’t answer clearly or avoids specifics, move on.
Who Should Use an Energy Broker?
Energy brokers aren’t just for big industry players. SMEs, multi-site retailers, cafes, warehouses, and logistics companies all stand to benefit—if they’re working with a broker who’s honest, responsive, and experienced.
That said, if your energy spend is under $10,000 per year or your usage is low and stable, comparison sites or direct retailer deals may offer similar value—without the middleman.
For more detailed guidance, check this ACCC electricity market report, which explains price structures and typical cost breakdowns in plain English.
So, Is Your Energy Broker Really Working for You?
In a perfect world, your energy broker is an ally—helping you get fair deals, avoid headaches, and reduce long-term energy costs. But in reality, not every broker works in the client’s favour.
The good news? You can take control.
Start by evaluating your broker against others in the market. Check their level of transparency, pricing insight, and contract knowledge. This comparison guide offers a solid framework:
Bottom Line:
A good broker simplifies your energy procurement. A great broker helps your business grow by aligning cost, usage, and sustainability goals. Choose carefully—and don’t be afraid to ask tough questions. That’s how real savings start.