Ever looked at your business electricity bill and felt like something didn’t quite add up? You’re not alone. Thousands of Australian businesses are overpaying for energy—often without realising it. While energy brokers are meant to help you cut costs, there’s a lot they don’t disclose upfront. This article pulls back the curtain on how energy brokers operate, the hidden margins you might be paying, and how to ensure you’re getting real value—not just lip service.
The Energy Broker’s Quiet Commission
Most Australian businesses assume energy brokers work like independent advisors. The truth? Many work more like sales agents for electricity retailers. Instead of charging you directly, they earn commissions from the energy retailers they recommend. That sounds fair—until you realise those commissions are baked into your bill.
In many cases, you’re paying a broker fee every month, embedded in your tariff rate. It’s invisible unless you know exactly where to look. And because these commissions are ongoing, brokers are incentivised to lock you into longer contracts—not necessarily better deals.
What Happens When You Ask for a Quote?
Let’s say you ask a broker to compare rates from multiple retailers. Sounds simple, right? But here’s what typically happens:
- You’ll receive three or four quotes, usually from retailers who pay that broker commissions.
- You won’t be shown all your available options.
- You won’t see a breakdown of the broker’s margin.
- And you almost never get access to wholesale market rates.
This lack of transparency is why businesses unknowingly sign off on inflated rates. Many assume they’re getting expert advice—when in fact, it’s more of a curated sales pitch.
Who’s Actually Comparing the Market?
The phrase “we compare the market for you” is everywhere in the energy broker space. But most brokers don’t access the full retail market. Instead, they work with a limited panel of retailers—usually between five and ten. If a cheaper offer exists outside that panel, it won’t even reach your desk.
It gets worse for regional businesses. In non-metro areas, choice is already limited. Brokers often funnel those clients into high-margin contracts because there are fewer options—and less competition means fatter commissions.
Here’s what’s usually left out of the pitch:
- Not all retailers are part of the broker’s panel.
- Some retailers offer cheaper plans directly to businesses.
- In-house analysts often don’t do personalised load profile modelling.
That last point matters. Without usage modelling, brokers can’t match your usage patterns with the best tariff structure. That’s where businesses lose thousands per year.
Is Your Contract Built for Brokers, Not You?
Some brokers prioritise volume over value. They sign hundreds of businesses a month and rely on retailer commissions for revenue. That model leads to one thing: contracts designed for the broker’s benefit, not yours.
Common red flags include:
- Inflated per kWh rates to fund ongoing commissions
- Locked-in contracts with no cost analysis after year one
- Hidden fees for early termination or contract transfers
A true cost-saving broker should be analysing your usage, comparing network charges, and forecasting your load curves. If all you’re getting is a quick rate sheet and a DocuSign, it’s time to dig deeper.
What Smart Businesses Do Instead
Forward-thinking businesses are flipping the model. Instead of relying solely on broker-led quotes, they’re requesting:
- A full disclosure of broker commissions
- A line-item tariff comparison
- Modelling based on 12 months of usage data
- Contract structures that exclude broker commissions
Some even ask for direct access to Australian Energy Regulator data—a public resource that shows published offers across states and territories.
It’s not about cutting brokers out. It’s about using them as strategic partners—not salespeople. The more questions you ask, the more power you have in the negotiation.
How to Pressure-Test a Broker’s Advice
Not all brokers are the same. Some do offer genuine market insight, use independent modelling, and prioritise transparency. To separate the best from the rest, try this checklist:
Ask your broker these five questions:
- What retailers do you have access to?
- What commission do you receive from this contract?
- Can I see options that don’t include your margin?
- How does this tariff compare with AER’s published rates?
- Can you provide a forecast based on my usage history?
If they hesitate, reframe, or deflect—you’ve got your answer.
Final Thoughts: Put Control Back in Your Hands
Your energy bill is one of the most controllable expenses in your business. But only if you can see what’s behind the numbers. Don’t just accept a broker’s recommendation at face value. Push for transparency. Ask the uncomfortable questions. And make sure you’re not unknowingly funding a sales model disguised as advice.
Want to explore how brokers differ and what that means for your bottom line? You’ll find a deeper analysis here:
energy broker