Do You Need an Energy Broker for Your Business?
A broker can save time and find offers a business would not see on its own. Whether that is worth the cost depends on the complexity of the sites and on how the broker is paid.
What a broker actually does
A broker gathers a business's usage and site details, approaches retailers, and presents offers. Some also manage the transfer, track contract end dates and handle renewals. The scope varies, and it is worth establishing it before appointing anyone.
The broker does not control the network charges or the physical supply. Those stay with the distributor and the retailer that wins the account.
How brokers are paid
Many brokers are paid by the retailer through a commission built into the rate. Others charge the customer a flat or percentage fee. Both models are legitimate, but they lead to different incentives, so ask directly which applies.
Ask for the commission or fee in writing, and ask whether the broker will show offers from retailers that do not pay commission. A broker who cannot answer those questions plainly is not giving you the information you need to judge the advice.
When a broker can help
Multi-site portfolios with different networks, tariffs and renewal dates are where a broker adds most value: consolidating the picture and managing several transfers at once is genuinely time-consuming.
Complex sites with demand charges, embedded networks or unusual metering also benefit from someone who reads those bills regularly. So does a business without the internal capacity to run a comparison.
When you may not need one
A single small site on a common tariff can be compared directly. If the offers are published, the site's network and usage are known, and the terms are clear, an intermediary mainly adds a layer rather than information.
The test is whether the broker is doing work you cannot easily do yourself: gathering data, reading complex tariffs, managing multiple sites, or handling the transfer. If not, the commission still has to be paid by someone.
Questions to ask before appointing a broker
Who pays you, and how much? Which retailers do you approach? Will you show me the written offers, including the rates and fixed charges? What happens at renewal? Who is responsible if the transfer fails or is delayed?
A good broker answers these without hesitation and puts the arrangement in writing. If the answers are vague, the cost of the commission is being hidden rather than explained.
Put it into practice
Upload an electricity bill to run a comparison on your site's actual usage, or read more business electricity guides.
Related guides
- How to Read a Business Electricity Bill
- Time-of-Use, Flat and Demand Tariffs Explained
- Network Charges vs Retail Charges: Who Charges You for What
- Moving Premises: A Business Electricity Checklist
- How to Compare Business Electricity Quotes
- Demand Charges on a Business Electricity Bill
- Switching Business Electricity Retailer
Business electricity by state
Network operators and market rules differ across Australia, so the mechanics described above play out differently depending on where your site is.
- Business electricity in New South Wales
- Business electricity in Victoria
- Business electricity in Queensland
- Business electricity in South Australia
- Business electricity in Western Australia
- Business electricity in Tasmania
- Business electricity in Australian Capital Territory
- Business electricity in Northern Territory
Electricity networks
Every business site connects to one distribution network. Knowing which one helps you read a quote and check that a plan is actually offered at your address. See every network or pick one: