In a country where electricity and gas costs are rising faster than many businesses can adapt, choosing the right energy broker can save you thousands—or cost you just as much. Unfortunately, not every broker puts your best interests first.
Whether you’re running a restaurant in Sydney, a logistics firm in Melbourne, or managing a retail chain across Queensland, energy brokers offer a convenient way to compare and switch providers. But how do you separate the genuine advisors from the commission-chasing salespeople?
Below are five key warning signs to keep an eye on before signing anything. This guide will help Australian businesses make informed decisions and avoid costly mistakes.
1. They Won’t Disclose Their Commission Structure
One of the first red flags is lack of transparency about how the broker gets paid. Most energy broker firms earn a commission from energy retailers—this isn’t a problem in itself. But if they avoid answering when you ask about fees or commissions, that’s a warning.
In fact, some brokers have agreements with only a limited number of retailers. This means they may push you towards plans that pay them more, rather than those that genuinely benefit your business. You want someone who can clearly explain how they’re compensated and whether they receive incentives for steering you toward particular contracts.
If you can’t find this information upfront, walk away.
Learn how one leading energy broker manages this transparency in their process: energy broker
2. They Don’t Offer Multiple Retailer Quotes
A good broker should act like an independent advisor, giving you a spread of options. If they only ever seem to recommend one or two suppliers, chances are they don’t have access to the full market—or worse, they’re biased.
You should expect quotes from at least four or five retailers, each tailored to your usage profile, load times, and business type. If they keep saying “this is your only option,” be suspicious.
Also, check that they’re comparing both contract length and flexibility. For example, can you exit without penalties if rates drop significantly?
3. They Promise Instant “Cheapest Rates”
No legitimate energy broker can guarantee the cheapest rate in the market every single time. Electricity and gas rates fluctuate regularly, and what’s best for one business could be entirely unsuitable for another.
Watch out for brokers who use pressure tactics, like “sign now to lock in this deal.” If they don’t allow you time to review the contract or consult your finance team, they may be prioritising commission over service.
Here’s how a leading energy broker compares plans to provide more accurate insights: energy broker
4. Their Contract Terms Are Vague or Opaque
Before committing, always ask to see the full terms and conditions. Some brokers will send you summaries or overly simplified comparisons. These documents can gloss over crucial clauses like:
- Early exit fees
- Hidden network charges
- Automatic rollovers to less favourable tariffs
- Billing intervals and demand charges
A legitimate broker should explain each item in plain language and answer questions clearly.
If the paperwork is vague, incomplete, or feels rushed, treat that as a sign to proceed cautiously.
5. They Don’t Offer Ongoing Support
Energy procurement isn’t a “set and forget” task—especially with the volatility of wholesale markets in Australia. A reliable energy broker will check in before your contract expires, track your usage over time, and offer support if billing issues arise.
Ask them directly: “Will you be available during the contract period if I have questions or problems?”
If they hesitate, or you can’t reach them after the initial deal is signed, they’re likely just a one-time operator.
This is one area where better brokers really stand out—see how they manage support and follow-ups: energy broker
Pro Tip: Always Check Licensing and References
While not all states require energy brokers to hold specific licenses, many reputable ones voluntarily register with industry associations or follow internal codes of conduct. At a minimum, you should ask for client references or look at their Google reviews.
An independent third-party report by Energy Consumers Australia showed that many small businesses still feel “uninformed” after switching providers. Don’t be one of them—do your homework.
Final Thoughts
Choosing an energy broker can deliver real savings and spare your team hours of admin. But not every broker puts your bottom line first. Be wary of those who lack transparency, limit your options, or push you to sign quickly.
Ask questions. Read the fine print. And most importantly, find a broker who views your energy spend as a long-term relationship, not a quick sale.
Small actions now can result in big energy savings later.