You wouldn’t let a stranger negotiate your lease or handle your payroll. So why let the wrong energy broker steer your business’s utility costs?
In an industry where every cent matters, choosing the right energy broker can mean the difference between steady savings and a silent bleed to your bottom line. Yet, too often, business owners don’t realise just how much is at stake—until it’s too late.
Let’s break down the hidden costs that come with picking the wrong energy broker and what to look for to protect your business.
What Does an Energy Broker Actually Do?
An energy broker connects businesses with energy retailers, helping negotiate better electricity or gas rates. Think of them as the middle person who shops around for the best contract, ideally saving you time and money.
But not all brokers play fair. Some are genuinely focused on your long-term savings. Others may be more interested in commission structures, pushing deals that quietly benefit themselves more than you.
Commission-First Brokers: Who Really Wins?
One of the biggest hidden traps? Commission-first deals.
Plenty of brokers earn their keep through commission—nothing wrong with that. The issue lies in how it’s structured. Some providers offer a higher kickback to brokers for signing clients into inflated rates or long-term contracts that aren’t actually in your best interest.
You could lock in a 3-year rate that looks fine on paper—until market prices drop six months later and you’re stuck, paying more than your competitors.
This is where a savvy energy broker makes a difference. The best ones put transparency first, clearly showing how they get paid and why a particular deal is better for your situation—not theirs.
Long Contracts, Short-Term Thinking
Another overlooked issue? Brokers that default to locking clients into extended contracts without fully explaining the risks. Sure, a longer contract might bring stability—but it also limits your flexibility if your energy needs shift or better deals emerge.
Let’s say you’re a growing hospitality group in WA. A contract signed today might not suit your energy load in six months. If your broker hasn’t flagged that, you could end up paying exit fees or penalty rates.
A quality energy broker will help you assess risk properly—not just sign and forget.
Missed Savings from Poor Market Timing
Energy markets fluctuate daily—wholesale prices, network charges, environmental levies, you name it. Locking in a contract without checking the timing could mean missing out on substantial savings.
Imagine locking in during a market peak because your broker was rushing to meet end-of-quarter quotas. The difference could add thousands to your annual bills, especially for energy-intensive sectors like manufacturing or food production.
Smart brokers use market data to time contracts with precision. They also monitor expiry dates, so you’re never caught rolling into default rates—another often-ignored hidden cost.
Generic Advice = Generic Results
Not all businesses consume energy in the same way. Retailers have different peak periods than a 24-hour logistics company. Yet some brokers offer the same advice to every client.
That’s lazy brokering.
The wrong broker might suggest a basic flat-rate plan when a time-of-use tariff would have slashed your bills. Or they could ignore demand charges altogether, which for some businesses are half the total cost.
As this independent analysis from the ACCC shows, businesses that understand and optimise demand management can significantly reduce annual energy costs.
Great brokers don’t just compare retailers—they dig into your usage profile, recommend smarter tariffs, and adjust strategies as your business changes.
Energy Plan “Add-Ons” That Add Up
Ever noticed those sneaky charges in your energy bill? Things like metering fees, green energy surcharges, or payment processing costs?
Less-experienced brokers might ignore these smaller line items, but they stack up fast—especially if you’re running multiple sites. That $1/day charge becomes $365 per site, per year. Now multiply that across 10 sites.
The wrong broker won’t think to challenge these extras. The right one will.
No Post-Sale Support? That’s a Problem.
A common gripe from business owners: “Once we signed, we never heard from the broker again.”
Many brokers drop off the radar post-signature. But what if your energy usage spikes? Or if there’s a billing issue with your retailer?
Brokers who don’t provide ongoing service leave you to deal with retailers yourself—which defeats the point. A better energy broker stays involved, handling disputes, checking for billing anomalies, and helping you pivot when your needs change.
How to Spot the Right Energy Broker
Here’s a checklist of what to ask before signing anything:
- How are you paid? Ask for transparency around commissions.
- What happens after we sign? Look for ongoing support, not just a once-off deal.
- Will you assess my usage? Avoid brokers who don’t request recent bills or usage patterns.
- Can I leave the contract early? Understand exit fees and flexibility.
- Will you help renegotiate before expiry? You don’t want to be stuck on default rates.
Final Thoughts
The wrong energy broker doesn’t just cost you money—they cost you time, flexibility, and control over your future energy strategy. Business owners deserve better than one-size-fits-all plans and hidden commissions.
Before signing anything, pause. Ask questions. Demand transparency. And always choose a broker who works as hard for your savings as you do for your business.
Want a smarter approach to energy deals? Start by asking the right questions—and avoid the silent losses no one tells you about.