Ever stared at your electricity bill and thought, “Hang on, this can’t be right”? You’re not alone—and you’re not powerless, either. Enter the electricity broker: a behind-the-scenes expert who makes sure you’re not overpaying for something as essential as turning on the lights. But what does a broker actually do—and are they worth it?

Here’s the no-nonsense breakdown.

What does an electricity broker actually do?

In plain terms: they compare, negotiate, and secure better electricity deals on your behalf. But behind the scenes, it’s a bit more strategic.

An electricity broker works much like a mortgage broker, only instead of loans, they handle energy plans. They liaise with multiple retailers, analyse usage data, and assess contract terms to match businesses (and sometimes households) with plans that cost less—and work harder.

They’re especially useful in the Australian energy market, which can feel deliberately complex. With fluctuating wholesale rates, varying network tariffs, and tricky contract structures, many businesses unknowingly lock themselves into subpar deals.

Here’s what brokers typically handle:

• Reviewing past bills to spot inefficiencies

• Assessing peak usage times and load profiles

• Comparing dozens of retailer offers (not just the ones advertised)

• Negotiating better rates or contract terms

• Advising on fixed vs. variable rates

• Aligning energy procurement with business goals (e.g., sustainability targets)

Why can’t I just switch energy providers myself?

You absolutely can. But here’s the kicker—most businesses don’t have the time or data access to make an informed decision.

Retailers don’t always publish their best rates. There are also hidden costs in network fees and demand charges that can outweigh the headline rate. Brokers work with raw, behind-the-scenes tariff data and industry platforms that the public rarely sees.

Think of it like this: you could fix your own plumbing too, but if a tradie with the right tools can save you thousands in the long run, wouldn’t you?

Is an electricity broker really unbiased?

That depends on the broker’s business model.

Some work purely on commission from the retailer, which may bias their recommendations. Others operate on a fee-for-service basis, meaning the client pays directly for independent advice.

If transparency matters to you (and it should), ask upfront:

• How do you get paid?

• Which retailers do you have relationships with?

• Will I see all the offers, or just the ones you recommend?

The most trustworthy brokers behave consistently, regardless of who’s paying them. They’ll also let you keep a copy of all offers for transparency.

🧠 Cialdini Principle in action: Authority
Brokers with NEM (National Electricity Market) experience or ACCC compliance knowledge build instant trust. Look for those credentials.

Are brokers only for big businesses?

Not at all.

While large manufacturers or multi-site retailers benefit massively from brokerage services, SMEs can too—especially when locked into outdated or default market offers. Even a café in Parramatta or a dry cleaner in Geelong might see 10–25% savings with a smarter plan.

If your business spends over $1,000/month on electricity, a broker could find thousands in savings annually.

What does a broker need from me to get started?

Surprisingly little:

• A recent electricity bill (last 3–6 months)

• Basic business info (e.g., ABN, site address)

• Usage or meter data (most brokers can access this on your behalf)

From there, they’ll run the numbers and present options—usually within 48–72 hours.

Some brokers also offer ongoing services, like market monitoring or contract renewal alerts. These can be especially helpful if you’re in a volatile market or your business scales quickly.

Is using a broker free?

In many cases, yes.

Brokers who work on commission get paid by the retailer you choose. That means you won’t be invoiced directly. Just be aware of the potential for soft bias toward certain providers.

Fee-for-service brokers charge upfront or monthly but offer clear independence. It’s the difference between working with a recruiter who represents a job seeker vs. one who’s on your payroll.

There’s no right or wrong—just clarity. Make sure you’re getting value in exchange for trust.

How do brokers get better rates than I can?

Retailers offer brokers “channel-specific” rates—often unpublished online—because brokers bring bulk business. A good broker might also:

• Time your contract to low wholesale periods

• Use reverse auctions to get multiple retailers to compete

• Identify demand spikes and help smooth usage to reduce peak charges

It’s not about special treatment. It’s about leverage—and brokers have it.

What’s the catch?

Honestly? The only “catch” is assuming all brokers are created equal.

Some may prioritise quick deals over long-term value. Others may not bother comparing enough retailers or consider your future needs. That’s why the quality of the broker matters more than just the service itself.

Ask questions. Look for experience. Demand transparency.

Can electricity brokers help with solar or sustainability goals?

Yes—and it’s becoming increasingly common.

Some brokers now specialise in:

• Solar feasibility studies

• PPA (Power Purchase Agreement) brokering

• GreenPower contract sourcing

• Carbon offset options

If your brand has ESG goals, a broker can be part of your broader sustainability strategy. They can help assess whether on-site generation (like rooftop solar) stacks up financially, or if buying green power from the grid makes more sense.

Real-world example: How a broker helped a Sydney factory slash costs

One NSW-based textile manufacturer had been on a rollover energy contract for three years. They assumed rates were “fine” because bills were predictable.

After engaging a broker, they discovered:

• They were paying nearly 30% above the market average

• Their peak usage charges could be flattened with minor process tweaks

• They were eligible for a demand response incentive

The broker negotiated a new plan that saved $42,000 in the first year—without switching retailers.

FAQ

Do I have to switch providers if I use a broker?
No. Brokers may recommend switching, but you can stay with your current provider and still access better rates or terms.

Can a broker help if I’m already mid-contract?
Sometimes. They may help with renegotiation, demand management strategies, or planning for your next renewal window.

What if I have multiple locations?
Multi-site brokers can consolidate contracts, align renewal dates, and negotiate group rates—ideal for franchises or expanding businesses.

Choosing whether or not to use a broker comes down to this: is your current setup working for you, or are you just assuming it is? With energy prices fluctuating, regulatory shifts, and demand profiles evolving, there’s more to lose by staying passive than there is by asking questions.

You don’t have to do all the comparing, calling, and number crunching yourself. Sometimes, a quiet operator in the background—a broker—can be the one saving your business from paying too much just to keep the lights on.

For a more detailed look into how brokers work and why their value isn’t just in finding a “better rate”, this deep dive into electricity broker insights is worth a read.

For additional context on Australia’s retail energy pricing reforms, the ACCC’s electricity market report offers a goldmine of facts.