Energy costs can eat into your profit margins quietly—but consistently.
For many Australian businesses, comparing electricity contracts isn’t a priority until it suddenly becomes urgent. That’s where an energy broker often steps in, offering to save time and slash costs. And while some brokers genuinely help businesses secure better energy deals, many fall short—and a few might actually cost you more in the long run.
Here are five common mistakes businesses make when choosing an energy broker, and how you can avoid falling into the same traps.
1. Choosing a Broker Without Asking How They’re Paid
This is the biggest—and most common—oversight. Many business owners assume the broker’s fee is covered by the energy provider, or that the service is “free.” But nothing is ever truly free.
Most brokers earn commissions from the energy retailers they recommend. The issue isn’t the commission itself—it’s whether or not it’s disclosed and whether it skews their recommendations.
For example, one retailer may offer a better commission than others, so the broker pushes that plan even though it’s not the best fit for your business.
Before signing anything, ask:
- How do you get paid?
- Do you compare offers from all major retailers, or just a few?
- Can I see the full list of offers you reviewed?
For transparency benchmarks and practical advice, refer to this energy broker comparison resource.
2. Focusing Only on Price, Not Contract Terms
A broker might recommend a plan with the lowest unit rate. Sounds good on paper—but what about the contract length, exit conditions, billing cycles, or demand charges?
You might lock into a three-year contract at a fixed rate just as wholesale prices drop. Or worse, you may hit penalty rates if your business scales up and your usage exceeds initial estimates.
An experienced energy broker will analyse your business operations—not just past bills—and ensure the recommended plan matches your future needs, not just your current snapshot.
3. Overlooking Green Energy and Future Compliance
Sustainability isn’t just a buzzword—it’s becoming a procurement requirement for many supply chains and tenders.
A good broker should offer green energy options upfront. Some retailers now provide renewable power at prices similar to—or cheaper than—standard plans. But if your broker isn’t proactive in offering these alternatives, you could miss an opportunity to meet stakeholder expectations and lower your long-term emissions profile.
In fact, the Clean Energy Council reports that renewable energy made up over 39% of Australia’s total electricity generation in 2024—a trend that’s accelerating.
Don’t get locked into contracts that leave you behind.
4. Assuming All Brokers Offer Ongoing Support
Plenty of brokers vanish after the deal is signed. That leaves you alone when things go wrong—like billing disputes, unexpected demand charges, or missing renewal deadlines.
Ask what kind of follow-up your broker provides. Do they monitor your usage? Will they notify you when your contract is due for renewal? Do they audit bills to spot anomalies?
The best energy broker arrangements include proactive account management and ongoing savings reviews. Anything less and you’re not getting full value.
5. Not Checking Industry Experience
Energy needs vary wildly between industries. A broker who usually works with cafés might not be the right fit for a logistics company with warehouses across multiple states. Likewise, manufacturers or data centres need a very different contract structure than a hotel or gym.
Look for a broker who understands your usage patterns and operational constraints. For example:
- Hospitality might need off-peak flexibility.
- Warehouses often face high demand charges due to short spikes in usage.
- Franchises benefit from aggregated rates across multiple sites.
If your broker isn’t asking questions about your operations—or isn’t familiar with your sector—you’re probably not getting the best advice.
Final Thought: Don’t Leave It to Chance
Choosing an energy broker should be a deliberate, informed decision—not a rushed fix at renewal time.
The right broker can save you money, improve transparency, and reduce your admin workload. The wrong one can lock you into expensive contracts, leave you without support, and cost you far more than you save.
If you’re not sure whether you’re getting good advice now—or just want to benchmark your current arrangement—this practical energy broker breakdown is a smart place to start.