There’s a quiet leak in many business budgets.
It’s not staff, supplies, or rent—it’s energy. And while business owners scan invoices for obvious red flags, they often overlook the cost of poor energy procurement.
That’s where an energy broker steps in—or should. These consultants are supposed to secure better rates and simplify contract management. But here’s the thing: not all brokers actually save you money.
This article breaks down how energy brokers work, what to watch out for, and how to spot the ones that genuinely add value to your business.
What Is an Energy Broker?
An energy broker helps commercial customers compare electricity or gas plans from different retailers. They use your historical usage data to suggest plans that claim to offer savings—then handle the paperwork if you choose to switch.
It’s meant to save time and reduce costs. But like any service, outcomes vary. Some brokers are independent. Others are tied to specific retailers and earn commissions based on what they sell. Knowing the difference can mean thousands of dollars to your bottom line.
The Illusion of Choice: Are You Really Seeing the Best Deals?
Many brokers claim they compare the “entire market,” but that’s rarely the case.
In reality, most only work with retailers who pay them. If a better rate exists outside that group, you won’t see it. Worse, you might be nudged toward a more expensive plan simply because it earns your broker a higher commission.
It’s why a truly helpful energy broker discloses who they work with, how they get paid, and what alternatives were considered—not just the one they pitched.
Commissions vs Fees: Follow the Money
Commission isn’t a problem if it’s disclosed and doesn’t distort the broker’s recommendation.
Here’s the catch: most brokers don’t publish their rates. That means a 2-year contract with Retailer A might net the broker twice the kickback as Retailer B, even if Retailer B is cheaper for you.
Some brokers offer flat-fee services. These are rare, but they can provide peace of mind that the advice is independent. At minimum, ask your broker to declare any commissions or referral arrangements they’ve entered into. You deserve to know who’s paying them.
The Hidden Cost of Bad Advice
Let’s say your broker locks you into a fixed-rate contract based on current usage—but your business is growing, and electricity consumption will double next year. You’ll be stuck with a plan that no longer fits, possibly paying penalties or missing out on volume discounts.
Or maybe you operate across states. A good broker should structure your plan based on peak and off-peak patterns, tariffs in different jurisdictions, and load profiles. Without that attention to detail, “savings” quickly turn into waste.
If your broker isn’t asking detailed questions about your operations, they’re guessing. And guesswork costs money.
Real Support Goes Beyond the Contract
Most businesses think the job ends once the new contract starts. But the best brokers don’t walk away after the paperwork.
They monitor usage. They review invoices. They flag irregularities or cost spikes. They start renegotiation talks before your contract rolls over onto inflated default rates.
If your energy broker disappears after the signature, it’s time to rethink the relationship. Look for service models that include post-sale support, especially for large or multi-site businesses.
Here’s a breakdown of what real support looks like from a professional energy broker.
Green Energy: Another Missed Opportunity?
The market for renewables is growing. But many brokers still don’t actively offer green energy options unless prompted.
This isn’t just about ethics or optics. Businesses that prioritise sustainability often attract grants, build stronger supplier relationships, or benefit from long-term cost trends in renewables.
Some energy retailers now offer green energy plans at near-parity pricing with traditional sources, according to the Clean Energy Council. A good broker should present these as part of the discussion—not as a token add-on.
How to Vet a Broker Before Signing
Here are seven direct questions to ask:
- How are you paid?
- How many retailers do you compare?
- Will I see a breakdown of all options?
- Do you monitor usage after I switch?
- What happens if I need to exit early?
- Have you worked with businesses in my industry before?
- Do you offer green energy alternatives as standard?
If the answers aren’t clear or backed by evidence, move on.
Final Thought: Don’t Let Energy Spend Run on Autopilot
In many businesses, energy costs are “set and forget.” But the market isn’t static, and neither is your consumption. Prices shift, operations evolve, and what made sense two years ago may no longer work today.
That’s why working with a capable, transparent energy broker is essential—not optional.
Want to benchmark your current provider or broker against industry expectations? This energy broker comparison spells out what quality advice should actually look like.