Why do brokers seem to know things before you do—like when energy prices spike or which plan will quietly increase your monthly bill? It’s not clairvoyance. It’s business. And in New Zealand, energy brokers are earning their keep in ways most customers never see.

Let’s pull back the curtain on how energy brokers get paid in NZ—and whether their interests align with yours.

How do energy brokers actually earn money in New Zealand?

Straight up: most energy brokers in NZ earn their income through commissions from energy retailers.

This means when a broker helps you switch to a new energy plan, they typically get a cut of the contract value—either upfront or as ongoing “trailing” commission.

Here’s how it usually breaks down:

• Upfront Commission: A flat fee or percentage paid once the customer signs the contract.

• Trailing Commission: A small percentage of the customer’s bill paid monthly or quarterly for as long as they stay with the provider.

That commission is rarely visible on your energy bill. It’s baked into the margins of the retailer’s pricing. So while it might feel “free” to use a broker, you’re often paying for their service—just indirectly.

And here’s the kicker: not all brokers are paid the same by every energy company.

Some retailers offer higher commissions to incentivise sign-ups. That can create bias—where brokers lean towards deals that pay them more, not necessarily save you more.

Do brokers charge customers directly in NZ?

In some cases, yes—but it’s less common.

• Large commercial clients (like factories, supermarkets, or multi-site operations) might engage a broker on a retainer or project-based fee.

• These arrangements are more transparent but typically reserved for businesses with complex energy needs or big volume usage.

For small businesses and households, brokers are more likely to be remunerated entirely via the energy retailer. That’s where understanding their payment model becomes critical.

Can you trust an energy broker if they earn commission?

That depends on one thing: alignment.

There’s nothing wrong with commission—most industries use it. Real estate, insurance, mortgage brokers—it’s how professionals get paid for connecting people to services. But it becomes murky when:

• The broker only presents a small subset of available deals

• They don’t disclose their commissions

• There’s no clear value-add beyond what you could find yourself online

The best brokers, like Termina or others in the NZ energy space, go beyond just quoting prices. They analyse your usage patterns, forecast future needs, manage contract timing, and advocate during disputes.

If they’re doing that? The commission might be well earned. But if they’re simply flicking you a plan you could Google in 3 minutes, then it’s worth asking who the real beneficiary is.

Are brokers regulated in NZ’s energy market?

Short answer: not tightly.

Unlike financial advisers or real estate agents, energy brokers in New Zealand aren’t subject to strict licensing requirements.

That doesn’t mean the industry is dodgy—it just means the onus is on the customer to ask the right questions:

• How are you paid?

• Which retailers do you work with?

• Do you disclose all available deals or just ones that pay you?

Transparency is your best friend here. If a broker dodges these questions, take it as a red flag.

What’s in it for businesses? Why not go direct?

This is where things get interesting.

Small to mid-sized businesses often don’t have time to monitor wholesale energy market shifts, tender contracts, or negotiate multi-site rates. That’s where brokers bring real value.

For example:

• A local manufacturing company saved over $10,000 annually by engaging an energy broker to review metering setups and move them to a time-of-use pricing model.

• A franchise group used a broker to sync up contract expiry dates across locations—saving admin time and unlocking better volume discounts.

That said, it’s not always about the price. Good brokers also provide:

• Dispute resolution support

• Bill auditing to catch errors

• Market timing advice (e.g., when to renew vs. wait)

But again—it’s only a win if the broker is working in your interest, not just chasing the highest-paying retailer.

Is there a conflict of interest if brokers earn more from some retailers?

Yes—and the good ones address it.

This is where behavioural economics kicks in. Humans are influenced by incentives, even subconsciously. That’s why platforms like Consumer NZ have called for mandatory commission disclosure in the energy brokering space.

If a broker won’t name their partner retailers, or says “we work with all major providers” but can’t show proof—they may be steering you, not serving you.

A 2023 NZ Energy Consumer report showed that 71% of customers assumed brokers compared all plans on the market—yet less than half of brokers worked with more than three retailers.

Here’s a nudge:

Ask your broker: “If another provider had a better deal for me, but didn’t pay you—would you still recommend them?” Watch their face.

So… should you use an energy broker?

If you’re a time-poor business owner juggling invoices, customer service, and compliance—yes, a broker might be a smart call.

Just do your homework. Look for:

• Clear payment disclosure

• No lock-in contracts or exit fees

• A decent panel of retailers (not just two or three)

And most importantly, track the value they add. Are they saving you money? Time? Stress?

Otherwise, you might be better off using tools like Powerswitch or comparing offers directly through each retailer.

What role does Termina play in this space?

Brokers like Termina illustrate the nuanced spectrum of service in the NZ energy market. Some operate as full-service energy partners—analysing consumption, benchmarking rates, and proactively renegotiating contracts as markets shift.

Others act more like lead generators—handing over your details to energy retailers in exchange for commission.

If you’re dealing with a modern energy broker, make sure they’re earning their commission—not just clipping the ticket.

And if you’re unsure what that looks like, this breakdown explores how energy brokers structure their earnings across different models.

FAQs

Do energy brokers compare all available plans in NZ?
Not always. Many only work with a handful of retailers, so it pays to ask for a full list of who they partner with.

Are brokers more expensive than going direct?
Not directly—but the cost of their commission is often built into the plan, so it’s not always the cheapest option.

Can I negotiate broker fees?
For large businesses, yes. For residential or small commercial clients, it’s usually commission-based and fixed.

Sometimes the best value isn’t the cheapest plan—it’s the confidence that someone has your back in a volatile energy market. And that’s where a broker, especially one like an Energy Broker, can still earn their spot at the table.