Business energy broker: What they do, how they work & how they get paid

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Quick summary

A business energy broker compares electricity and gas offers on your behalf and manages procurement from start to finish. How a broker works depends on your business's size and energy use. Small businesses get a quick plan comparison with on-the-spot switching. Larger businesses go through a formal tender to negotiate fixed-term commercial contracts. Both can access broker support for electricity, gas, or both.

Key takeaways

A business energy broker is independent of retailers. They work on your behalf, not the retailer's.

The energy market works differently for small and large businesses. The product type, contract structure, billing frequency, and broker process all differ.

Small businesses (typically under 100,000 kWh of electricity, or 1 TJ of gas, per year) access retail energy plans, compared and switched in a single call.

Large businesses (typically over 100,000 kWh of electricity, or 1 TJ of gas, per year) access commercial contracts secured through a formal competitive tender.

Brokers can manage electricity and gas procurement together or separately.

Large business procurement requires a Letter of Authority (LOA). It gives the broker permission to access usage data and run a tender on your behalf.

What is a business energy broker?

A business energy broker is an entity that acts between your business and the energy market. They are not a retailer and do not supply energy. Their job is to compare offers from a panel of retailers, manage the process on your behalf, and help you secure a contract or plan that suits how your business uses energy.

Brokers work with businesses of all sizes. What changes depending on your size is the type of energy product available to you, the process involved, and the level of support a broker provides.

What does a business energy broker actually do?

A broker starts by reviewing your current energy situation: your usage data, existing plan or contract, and when it expires. They go to market on your behalf, gather offers from retailers, and present the options. If you approve, they manage the switch or contract execution. A good broker also supports you after signing, including checking invoices, monitoring the market, and flagging renewal windows before they come around.

How does the energy market differ for small and large businesses?

Not every business accesses energy the same way. A small office and a large factory are both energy customers, but they access different products, face different pricing structures, and go through a different process to procure energy. Understanding which category your business falls into is the starting point for knowing what a broker can do for you.

Small businesses

What is a small market energy customer?

In most of Australia, a small energy customer is generally a business consuming under 100,000 kilowatt hours (kWh) of electricity per year, or 100 megawatt hours (MWh). This is the threshold in New South Wales, Queensland and the ACT. Victoria uses a lower threshold of 40,000 kWh, and South Australia a higher one of 160,000 kWh. The 100,000 kWh figure is set under the National Energy Customer Framework, which most states have adopted. For gas, a small customer is one using under 1 terajoule (TJ), or 1,000,000 megajoules, per year, a threshold that does not vary by state.

Small market customers access retail energy plans. A plan is usually a bundled product: all costs (the wholesale cost of the energy itself, network charges, environmental levies, metering, and the retailer's margin) are wrapped into a single rate or set of rates. The business sees one price, not each component separately. Small market customers are typically billed quarterly.

Large businesses

What is a large market energy customer?

A large market customer is generally a business consuming more than 100,000 kWh of electricity per year in New South Wales, Queensland and the ACT (more than 40,000 kWh in Victoria, and more than 160,000 kWh in South Australia). For gas, a large customer uses more than 1 terajoule (TJ), or 1,000,000 megajoules, per year, the same threshold in every state. These businesses access commercial energy contracts and are billed monthly.

Unlike a retail plan, a commercial contract itemises every cost component. The retail energy rate, environmental costs, and metering fees are negotiated. Network charges and market operator charges are regulated pass-throughs, applied on top and reset annually by the regulator. Because some components move independently of the contracted rate, total cost can shift over the life of a contract even when the headline rate stays fixed.

How does a business energy broker help small businesses?

What does a small business energy comparison look like?

For a small business, broker-led energy procurement is fast. The broker reviews the business's current electricity or gas bill, confirms the plan and pricing, and compares it against offers from a panel of retailers. The comparison covers the daily supply charge and the consumption rate, cents per kWh for electricity or cents per megajoule for gas. If a better option is available and the business approves, the switch happens in the same call.

What should a small business look for in an energy plan?

A competitive energy rate, but that is not the only thing that matters. A small business should also consider the daily supply charge, which applies regardless of usage, and the tariff structure (how the business is charged for the electricity it uses). For example, a flat-rate tariff charges the same rate at all times and suits businesses with consistent usage across the day. A time-of-use tariff charges different rates at different times of day and may reduce costs for businesses that mostly run outside peak hours. A broker assesses whether the current tariff fits the business's usage, not just whether the rate looks competitive.

How does a business energy broker help large businesses?

What is the process for a large business energy procurement?

Large business energy procurement starts with a Letter of Authority (LOA), which gives the broker permission to access the business's usage data and manage the process on its behalf. The broker then runs a formal competitive tender, sending the consumption profile and contract requirements to retailers across a curated panel. Each retailer submits an offer. The broker models the total cost over the contract term, compares the offers, and presents the findings. Once a retailer is selected, the broker manages the contracting process through to handover.

What does a large business energy contract include?

A large business commercial energy contract covers the components where retailers compete: the retail energy rate, environmental costs, and metering fees. These are negotiated and locked in for the contract term, typically one to five years.

Network charges and market operator charges sit outside the negotiation. They are regulated pass-throughs, set by the network distributor and reset annually. These can move significantly at each annual reset, meaning total energy cost can change even when the contracted rate holds. A broker helps the business understand this before committing to a term.

Can a large business energy broker provide support after the contract is signed?

Yes. A good broker offers ongoing services beyond the initial procurement, including invoice validation, network tariff reviews, and market monitoring.

For multi-site portfolios, a good broker can also consolidate reporting across sites, align contract end dates, and manage the procurement cycle for each site to avoid default rates at expiry.

What is the difference between a business energy broker and an energy retailer?

A retailer supplies energy and can only offer its own products. A broker does not supply energy. A broker has access to a panel of retailers and presents options from across that panel.

A retailer's representative is selling that retailer's contract. A broker is representing your interests. The difference matters most at renewal, when accepting a single offer without testing the market can lock a business into rates that were never properly compared.

How does an energy broker get paid?

Commercial energy brokers are typically paid through commission structures built into the retail rate, or through direct service fees. The same remuneration structures apply for both electricity and gas procurement. The main structures are:

Introductory commission (small business)

A one-off commission paid by the retailer when the contract is signed.

Retailer commission (large business)

An ongoing commission calculated as a percentage of the customer's energy spend, paid by the retailer and recovered through the contracted rate.

Metering commission (large business)

A commission paid for coordinating metering arrangements on the customer's behalf, separate from the energy rate commission.

Value-added service fee (large business)

A fee for ongoing services such as bill validation, network tariff reviews, and contract management throughout the contract term.

Consulting fee (direct fee)

Some brokers charge a direct fee for running a procurement process or managing a tender, billed separately rather than recovered through the retail rate.

It is worth asking any broker how their remuneration works and whether they disclose the amount. The National Customer Code for Energy Brokers, Consultants and Retailers sets out the disclosure standards that signatories commit to. Zembl is a signatory.

Small business vs large business: how does a broker service differ?

Small businesses Large businesses
Typical electricity use Under 100,000 kWh per year (40,000 in VIC, 160,000 in SA) Over 100,000 kWh per year (40,000 in VIC, 160,000 in SA)
Typical gas use Under 1 TJ (1,000,000 MJ) per year Over 1 TJ (1,000,000 MJ) per year
Energy product Retail plan (usually all costs bundled into a single rate) Commercial contract (each component itemised separately)
Billing frequency Quarterly Monthly
Broker process Quick comparison call, switch on the spot Formal competitive tender, contract review and execution
LOA required No Yes, to access usage data and run a tender
Contract term No lock-in or short term Typically 1 to 5 years
Electricity Yes Yes
Gas Yes Yes
Best for Small to medium sized businesses wanting a fast, simple comparison without lock-in Large businesses managing significant energy spend or multi-site portfolios
Watch-outs Plan structure matters as much as rate. Ask how the broker is paid. Network and market operator charges move independently of the contracted rate. Assess total cost, not just the headline rate.

Why Zembl

Why choose Zembl as your business energy broker

Zembl is an independent energy broker and procurement specialist that works with businesses of all sizes: quick plan comparisons for small businesses, and fully managed commercial procurement for large businesses and multi-site operators. Zembl has helped more than 30,000 Australian businesses² manage energy costs since 2009.

Because Zembl is independent, there is no financial incentive to favour one retailer over another. Every recommendation is made in the customer's interest, based on how their business actually uses energy. Zembl is a signatory to the National Customer Code for Energy Brokers, Consultants and Retailers.

30,000+ businesses helped since 2009²
17 yrs in the Australian energy market
4.8★ from 3,300+ online reviews¹
97% positive feedback rate³
Credential Detail
Customer reviews 4.8 out of 5 stars from more than 3,300 online reviews across Trustpilot, Google, and Product Review¹
Businesses helped More than 30,000 Australian businesses helped since 2009²
Experience 17 years in the Australian energy market
Certification Certified B Corporation, verified by B Lab
Retailer panel A panel of leading Australian energy retailers. Full panel at zembl.com.au/suppliers
Positive feedback 97% positive feedback rate from verified customer reviews³
Code of conduct Signatory to the National Customer Code for Energy Brokers, Consultants and Retailers, and the Energy Comparator Code of Conduct
Business energy broker case study: Electricity & gas savings example
$41,000 in energy savings for Mercy Education
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Currently available in NSW, ACT, SA, VIC, QLD & limited coverage in TAS & WA. Not available in NT and embedded networks.
Who we work with

Zembl is proud to be a signatory of the National Customer Code for Energy Brokers, Consultants and Retailers.

Zembl is proud to be a signatory of the National Customer Code for Energy Comparators & Energy Moving Services.

Frequently asked questions

What is a business energy broker?

A business energy broker is an entity who compares electricity and gas offers from multiple retailers on your behalf. They are not a retailer and do not supply energy. Their role is to act in your interests, not to promote a specific product. Brokers work with businesses of all sizes, from small offices to large industrial operations, and can manage electricity, gas, or both.

How do I know if my business is a small or large energy customer?

In most of Australia, the threshold is 100,000 kWh of electricity per year (40,000 kWh in Victoria and 160,000 kWh in South Australia). Below that, your business is a small market customer and accesses retail energy plans. Above it, you are a large market customer and access commercial contracts. For gas, a small customer is one using under 1 terajoule (TJ), or 1,000,000 megajoules, per year, and this threshold is the same in every state. If you are unsure, a broker can review your most recent bill and confirm your classification based on actual consumption and meter type.

Do small businesses need an energy broker?

Not every small business needs one, but most benefit from the comparison. A broker does the legwork of comparing offers from multiple retailers. For a business spending more than a few hundred dollars a month on energy, finding a better-structured plan can reduce costs without the business needing to research the market itself. A standard small business comparison typically has no direct cost to the business.

What is a Letter of Authority and why is it needed?

A Letter of Authority (LOA) gives a broker permission to access the business's energy usage data and speak with its current retailer on its behalf. It is required for large business energy procurement. Signing an LOA does not commit the business to switching. It simply authorises the broker to gather the data needed to run a competitive tender and present the options.

Can a broker help with both electricity and gas?

Yes. Many brokers manage electricity and gas procurement together or separately, depending on when each contract expires. Gas and electricity are separate markets, but the process is similar. For businesses with both connections, consolidating procurement through a single broker can simplify the process and help align renewal timelines.

How long does a business energy procurement process take?

For a small business, a comparison and switch can be done in a single 10-minute call. For a large business, a formal procurement process can be turned around in as little as a few days from signing the LOA to reviewing tender responses and selecting a retailer. Larger or more complex procurements, such as multi-site portfolios, can take a lot longer depending on the number of sites and the requirements involved.

What is the difference between a retail energy plan and a commercial contract?

A retail plan bundles all cost components into a single rate or set of rates. The business generally sees one price, not the components behind it. A commercial contract itemises each component separately: the retail energy rate, environmental costs, metering, and network pass-throughs. Commercial contracts run for fixed terms, typically one to five years, and the components can move independently over the term.

What is the National Customer Code for Energy Brokers?

The National Customer Code for Energy Brokers, Consultants and Retailers is a voluntary code of conduct for the energy broker industry in Australia. It covers how brokers disclose their remuneration, how they represent their retailer panels, and how they handle customer data. Zembl is a signatory. Choosing a broker who is a signatory gives businesses a baseline assurance of transparency.

Can an energy broker help a business with multiple sites?

Yes. Brokers who work with larger businesses can manage procurement across multiple sites. This includes consolidating usage data, running tenders for the whole portfolio, aligning contract end dates where practical, and identifying sites that may benefit from tariff reviews or demand management. Managing multi-site energy portfolios independently is complex; broker-led procurement reduces that burden significantly.

What happens when a business energy contract expires?

At expiry, a large business rolls onto its retailer's default rate, which is typically higher than the negotiated contract rate. A broker managing the relationship will flag the renewal window (usually six to twelve months before expiry) and begin the next procurement cycle in time. For small businesses on retail plans, rates can change at notice, and a broker can review the current plan at any time.

¹ Based on reviews published on Trustpilot, Google, and Product Review as at June 2026. Combined, Zembl has received more than 3,300 customer reviews with an average rating of 4.8 stars across all three platforms. Ratings are subject to change over time as new reviews are received and published.

² Based on Zembl customer records as at May 2026. Customer numbers reflect businesses that have used Zembl's energy comparison and procurement services across Australia. Figures are rounded and subject to change over time.

³ Based on Zembl Product Review reviews as at June 2026. The 97% positive feedback rate is calculated from verified customer reviews published on ProductReview.com.au. Ratings are subject to change over time.