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

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Quick summary

A commercial energy broker is an independent intermediary that helps businesses procure electricity and gas by running competitive tenders across multiple retailers. Rather than approaching a single supplier, a broker sources and compares offers on your behalf, advises on pricing structures and contract terms, and supports the process from data collection through to contract execution. Brokers are most valuable for businesses with multiple sites, limited internal energy expertise, or contracts approaching renewal in a volatile market, and businesses with less than 13 months to contract expiry.

Key takeaways

What to know before engaging a commercial energy broker

A commercial energy broker is an independent intermediary. Brokers do not supply electricity or gas: they run a competitive process between retailers on your behalf, with no financial incentive to favour one retailer over another.

Your electricity bill is built from several components. These include the energy charge, regulated network charges, environmental charges, metering fees, and market fees. A broker compares the parts you can negotiate and explains the parts you cannot.

Your gas bill is similarly structured. A contestable commodity rate and carbon costs sit alongside regulated pipeline distribution charges, including the daily supply charge and consumption charges, passed through at cost. As with electricity, a broker can influence the contestable components.

Network charges, including demand charges, are regulated pass-through costs that reset each 1 July. They move independently of your retail rate, so total bill cost can shift even on a fixed contract when network tariffs are revised.

Demand charges are based on your highest single 30-minute peak demand reading, not your total usage. One short spike in the billing period can drive a large share of the monthly cost.

Ask how a broker is paid before you engage one. Brokers are usually paid by commission built into the retail rate, or by a direct fee. Remuneration structures vary and should be disclosed upfront.

Brokers add the most value for multi-site portfolios. Businesses with limited in-house expertise and contracts where timing the market can affect long-term cost outcomes are where a broker's structured process creates the most value.

Broker services

What does a commercial energy broker do?

A commercial energy broker helps businesses navigate the complexity of electricity and gas procurement. Rather than offering a single retail product, a broker sources and compares offers from multiple retailers to give broader market visibility.

Competitive tendering

Running electricity and gas tenders across multiple retailers simultaneously, so offers are genuinely comparable on price and contract terms.

Retailer comparison

Comparing retailer offers on a like-for-like basis across all contestable bill components for electricity and gas, not just the headline rate.

Contract negotiation

Negotiating contract length, rate structure, environmental charges, and pass-through risk with retailers on the customer's behalf.

Pricing model review

Reviewing fixed, pass-through, and hybrid pricing models for electricity and gas to identify which structure best suits the business's risk profile and budget requirements.

Network tariff check

Checking electricity network tariff assignment and demand charge structure to identify whether the current tariff remains appropriate for the site's usage profile.

Usage and data analysis

Analysing interval data (electricity) and consumption data (gas) to understand usage patterns, identify demand peaks, and build an accurate picture of contestable cost.

Multi-site management

Managing electricity and gas portfolios across multiple sites and NMIs, including aligning contract terms and consolidating reporting across the portfolio.

Renewal support

Supporting contract renewals and advising on timing strategy so the business is never left on an expired arrangement or forced into a rollover rate.

Pricing explanation

Explaining rates, retailer margins, distribution charges, and pass-through costs in plain terms so the business can make decisions with full context.

Commercial energy broker case study: Electricity & gas savings example
Ord Minnett Limited unlocks $41,000 in energy savings

Electricity pricing

How is commercial electricity priced?

A commercial electricity bill is not a single rate. It is built from several components, each with its own pricing structure. Understanding the parts is what lets a broker compare offers properly, because two retailers can quote very different headline rates while the underlying cost sits in the components you cannot negotiate.

Example indicative commercial electricity bill components

A commercial electricity bill is made up of contestable and non-contestable components. Understanding which components retailers actually compete on is the difference between a tender that creates genuine value and one that produces offers that look different on paper but are equivalent once the non-contestable costs are stripped out.

Component Type What it is
Energy/retail rate Contestable Wholesale cost of electricity plus the retailer's hedging costs and margin. Priced based on your load profile, so it varies between retailers.
Environmental costs Contestable The retailer's cost of meeting federal and state renewable energy scheme obligations. Varies between retailers depending on how each manages their exposure and hedging strategy. Differs by state.
Metering fees Contestable Set under a separate metering coordinator agreement, independent of the retail contract. The fee can vary depending on the metering coordinator appointed. Some retailers also charge a small additional metering administration fee.
Network charges Pass-through Set by your distributor and passed through at cost. Includes demand charges, consumption charges, and fixed supply charges depending on your assigned network tariff. The same regardless of retailer.
Market operator fees Pass-through AEMO fees for operating the wholesale electricity market, passed through at cost. The same regardless of retailer.

What is the energy charge?

The energy charge reflects the wholesale cost of electricity, hedging costs, and the retailer's margin. It is measured in cents per kilowatt hour (c/kWh). Retailers manage wholesale price risk on your behalf by purchasing hedges against market volatility, and the cost of that risk management is built into the rate they offer.

This is the component a broker can most directly influence through competitive tendering: different retailers will price their margins and hedging costs differently, which creates genuine variation across offers.

What are network charges?

Network charges cover the cost of transporting electricity to your site. This includes transmission charges for the high-voltage network that moves electricity from generators across the grid, and distribution charges for the local poles, wires, and infrastructure that deliver it to your door. They are set and regulated by the Australian Energy Regulator (AER), not by retailers or brokers — they cannot be negotiated.

Network tariffs are assigned by the distributor based on your site's connection type, consumption or demand level, and metering type. They are not selected by the customer or the retailer. Network charges usually include a fixed daily charge, a consumption charge, and, for larger commercial and industrial customers, a demand charge.

What about environmental, metering, and market charges?

Environmental charges cover the retailer's cost of meeting renewable and emissions scheme obligations, such as the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES). These costs vary between retailers depending on how each manages its renewable purchasing and trading strategy, making them a contestable component.

Metering charges cover the cost of the meter and meter data services under a separate metering coordinator agreement. AEMO market fees are also passed through at cost — a smaller proportion of the total bill, but they can vary depending on your market region and metering type.

What are demand charges?

A demand charge is based on the highest rate at which your site draws power, measured over a 30-minute interval, during a specific billing window. Because demand is based on a single peak rather than total consumption, even one short spike in usage can drive a significant portion of the monthly cost.

Demand is charged in either kilowatts (kW), which measures real power, or kilovolt-amperes (kVA), which captures apparent power including reactive load. Your distributor determines which measurement applies. Demand charges are non-contestable — they are set by the network distributor and passed through unchanged regardless of retailer.

30-minute interval demand profile

Sets charge

Each bar represents a 30-minute interval. The highest bar sets the demand charge for the billing period, regardless of how low consumption is the rest of the time. Brokers help businesses understand their demand profile and how tariff assignment affects the total cost.

Gas pricing

How is commercial gas priced?

A commercial gas bill has a similar structure to electricity: some components a retailer can compete on, and others that are set by the pipeline operator and passed through at cost. Understanding the split is what makes a gas tender meaningful rather than just a comparison of headline rates.

What parts of a commercial gas bill are contestable?

Like electricity, a commercial gas bill is built from both contestable and non-contestable components. The commodity rate is what retailers actually compete on in a tender. Pipeline distribution charges are regulated and passed through at cost, regardless of which retailer you choose.

Component Type What it is
Commodity rate Contestable Wholesale cost of gas plus the retailer's margin. Priced in cents per megajoule (c/MJ). Varies between retailers based on their wholesale gas exposure and hedging strategy.
Carbon costs Contestable The retailer's cost of meeting carbon obligations under emissions reporting schemes. Varies between retailers depending on how each manages its obligations.
Pipeline distribution charges Pass-through Set by the gas pipeline operator and passed through at cost. Typically includes a fixed daily supply charge and a consumption-based charge in cents per megajoule. Meter reading costs are generally embedded in the distribution charge. The same regardless of retailer.

What drives the gas commodity rate?

Gas commodity pricing in Australia is influenced by the east coast wholesale gas market, LNG export demand, seasonal factors, and the balance between domestic supply contracts and spot availability. Commodity rates in retail contracts are typically quoted as a fixed rate or partially indexed to market benchmarks for the contract term.

Gas prices can be higher in winter due to heating demand, which means contract timing can affect long-term cost outcomes. A broker assesses market conditions and seasonal pricing dynamics when advising on the right time to go to market.

What are gas pipeline distribution charges?

Pipeline distribution charges cover the cost of transporting gas through the network to your site. They are set by the gas pipeline operator, regulated by the AER, and passed through at cost regardless of which retailer supplies your gas. The structure typically includes a daily supply charge and a consumption-based charge measured in cents per megajoule.

Unlike electricity, gas does not have a demand charge based on peak draw: charges are based on total consumption over the billing period. This makes gas billing somewhat simpler than electricity billing for most commercial customers.

Who are the gas pipeline operators?

Gas distribution networks are operated by different companies to electricity distributors. Your pipeline operator is determined by your location and cannot be changed. The main operators across the east coast are:

Jemena Gas Networks

Sydney and surrounds (NSW) and parts of Victoria

Australian Gas Networks (AGN)

Regional NSW, Victoria, South Australia, Queensland, and Western Australia

Multinet Gas

Eastern and south-eastern Melbourne (Victoria)

ActewAGL Distribution

Australian Capital Territory

Pricing models

Which pricing model suits your business?

Commercial energy contracts are priced in different ways, and the model that suits a business depends on its appetite for risk, the size and predictability of its load, and its cashflow requirements. A broker helps assess which structure fits and identifies how each model should be compared across retailer offers.

Pricing model How it works Best for Watch-outs
Fixed rate The energy rate is locked for the contract term, usually 1 to 5 years. Businesses that want budget certainty and predictable energy rates. Network and pass-through costs can still change, so the total bill is not fully fixed even when the retail rate is.
Pass-through (wholesale) You pay the wholesale market price plus a service fee, rather than a fixed rate. Larger users with the appetite and capacity to manage wholesale market risk. You take on the market risk. Costs can rise sharply when spot prices spike. For businesses without strong cashflow reserves, an unexpected cost surge under this structure can create serious financial pressure.
Hybrid A blend, with part of the load fixed and part exposed to the wholesale market. Businesses wanting some price certainty while keeping upside from market movements. More complex to compare. The structure needs to match your load profile to deliver the expected outcome.

Electricity procurement

How does commercial electricity procurement work?

A broker follows a structured process to take an electricity contract to market. The steps below show a typical broker-led commercial electricity procurement, from initial data review through to contract execution.

1. Usage and contract review

Historical usage, interval data where available, current contract terms, and your National Metering Identifier (NMI) are gathered to build an accurate demand profile for the tender.

2. Market strategy and timing

The broker assesses wholesale market conditions, forward pricing trends, and your contract expiry timeline to determine the right time to go to market.

3. Competitive market tender

Multiple electricity retailers are invited to submit pricing based on your load profile, contract preferences, and required terms. A structured Request for Proposal (RFP) ensures like-for-like comparison.

4. Offer comparison and analysis

Retailer responses are evaluated across energy rates (c/kWh), how pass-through costs including network charges are structured and whether caps or escalation clauses apply, contract terms, and price structure.

5. Recommendation and decision support

The broker presents comparative pricing and explains the structural differences between offers so the business can make a decision with full context. There is no obligation to accept any offer.

6. Contract execution and implementation

Once a retailer is selected, the contract is executed between the business and the retailer. Site transfer and NMI registration is managed through AEMO's transfer process.

30 min

Demand charges are set by your single highest 30-minute consumption peak in the billing period, not by total usage.

1 Jul

Network charges reset each 1 July under Australian Energy Regulator determinations, independent of your retail contract.

13 months

How early most businesses should start reviewing their electricity contract before expiry to run a proper tender and avoid rollover rates.

Gas procurement

How does commercial gas procurement work?

Commercial gas procurement follows a similar structure to electricity. The key difference is in the data and timing considerations: gas is metered monthly rather than in 30-minute intervals, and the gas market has seasonal pricing dynamics that can affect when it is best to go to market.

1. Usage data and authority

Recent gas bills, historical consumption data, and current contract terms are collected. A Letter of Authority is signed to allow the broker to access account information on the customer's behalf.

2. Market and timing assessment

The broker reviews the east coast wholesale gas market, forward pricing, seasonal demand factors, and the business's contract expiry timeline to advise on the right time to tender.

3. Competitive gas tender

Multiple gas retailers are invited to submit pricing based on the business's consumption profile, contract length, and requirements. A structured RFP ensures like-for-like comparison across offers.

4. Offer comparison and analysis

Retailer responses are evaluated across commodity rates (c/MJ), how pipeline distribution charges are treated, carbon cost structures, daily supply charges, and contract terms.

5. Contract execution

Once a retailer is selected, the contract is executed and the account transfer is coordinated through the pipeline operator.

c/MJ

The unit in which gas commodity rates are typically quoted. A broker compares rates across retailers on a like-for-like consumption basis.

Monthly

Gas is typically billed on monthly meter reads, not 30-minute interval data. Demand charges do not apply: gas bills are based on total consumption over the billing period.

Winter

Gas prices can be influenced by seasonal heating demand. Businesses procuring in winter may see different market conditions than those going to market in summer.

Brokers vs retailers

Commercial energy broker vs energy retailer

A common question is how a commercial energy broker differs from an energy retailer. Retailers supply electricity or gas and price it. Brokers do not supply power or gas, and instead help businesses access and compare what multiple retailers offer.

Commercial energy broker Energy retailer
Acts as an independent intermediary Supplies electricity or gas
Runs competitive tenders across multiple suppliers Provides its own retail offer only
Compares pricing across its retailer panel Represents only its own pricing
Advises on tariffs, pricing structures, and contract terms Sets its own retail rates
Can procure electricity, gas, or both in a single process May supply electricity only, gas only, or both, depending on the retailer

Remuneration

How do commercial energy brokers 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. Remuneration structures vary between brokers and should be clearly disclosed upfront. Ask how a broker is paid before engaging one to assess whether the structure aligns with your interests.

Introductory commission

Small business

A one-off commission paid by the retailer when the contract is signed. Recovered through the retail rate rather than billed to the customer separately.

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.

Regulation

Are commercial energy brokers regulated?

In Australia, energy brokerage is not regulated in the same way as financial advice. The framework that governs energy markets provides protections through retailer obligations and market rules rather than through direct broker licensing.

Electricity retailers operate under national and state regulatory frameworks.

Gas retailers operate under separate regulatory frameworks, including gas distribution access arrangements regulated by the AER.

Energy markets are governed by bodies such as the AEMC, the AER, and AEMO.

Brokers must comply with general consumer and competition law, but there is no separate broker licensing regime at the federal level.

Businesses should understand how a broker operates, including commission disclosure and the breadth of its retailer panel. Zembl is a signatory to the National Customer Code for Energy Brokers, Consultants and Retailers, and the Energy Comparator Code of Conduct.

Regulatory bodies

AEMC Australian Energy Market Commission
AER Australian Energy Regulator
AEMO Australian Energy Market Operator

When to use a broker

When do businesses use a commercial energy broker?

Commercial energy brokers are relevant for small businesses, mid-market businesses, and large organisations. A broker is worth considering in a number of situations.

A contract is approaching expiry

A business operates across multiple sites

Internal procurement capability is limited

Market volatility creates pricing uncertainty

A structured, competitive tender process is preferred

Greater pricing transparency or cost visibility is required

Value assessment

Are commercial energy brokers worth it?

For some businesses, direct negotiation with a retailer may be enough. For others, a competitive process through a broker provides pricing visibility and structured comparison. Whether it is worthwhile depends on several factors.

Portfolio size and complexity

Larger or multi-site portfolios often need structured procurement and pricing analysis, which increases the value of professional market engagement.

Internal expertise

Businesses with limited in-house energy knowledge can benefit from support to interpret tariffs, demand charges, and contract structures.

Contract timing and market conditions

Electricity and gas pricing are both shaped by wholesale market conditions. Timing a contract well can affect long-term cost outcomes.

Transparency of remuneration

Understanding how a broker is paid helps ensure recommendations align with your interests and governance requirements.

Choosing a broker

How to choose a commercial energy broker

When evaluating a commercial energy broker, businesses may consider the following.

Retailer panel breadth. A broader panel allows for more competitive tenders and stronger pricing comparison. Ask how many retailers the broker actively works with, and whether all panel retailers are invited to price on each tender.

Transparency around commission. Ask whether the broker earns an introductory commission, an ongoing retailer commission, a metering commission, a value-added service fee, or a direct consulting fee. Remuneration should be clearly disclosed upfront so you can assess whether it aligns with your interests.

Experience with similar industries. Industry experience helps a broker interpret load profiles and contract structures, particularly for complex sites or usage patterns with high demand peaks.

Ability to explain pricing clearly. A broker should be able to explain rates, margins, demand charges, and pass-through costs in plain terms, not just present a headline rate.

Ongoing contract support. This may include contract reviews, bill validation, and renewal management throughout the contract term. A broker that only engages at procurement and disappears after signing provides limited long-term value.

Electricity and gas capability. A broker that handles both electricity and gas procurement allows for a coordinated approach across both energy types, with aligned contract terms and a single point of contact.

State eligibility

Commercial energy brokers by state

Commercial energy broker procurement works the same way across Australia, but the specifics vary by state. Contestability thresholds differ, distribution network structures differ, and regulated reference prices differ. The pages below cover the state-specific detail relevant to businesses in each jurisdiction.

NSW

New South Wales

NSW has three electricity distribution network service providers: Ausgrid, Endeavour Energy, and Essential Energy. Businesses using more than 100,000 kWh per year are in the contestable electricity market.

Gas is distributed by Jemena Gas Networks across the Sydney metro area and surrounds. Gas contestability thresholds vary by network zone and differ from the electricity threshold.

Commercial energy broker NSW

VIC

Victoria

Victoria has the lowest electricity contestability threshold of any mainland state at 40,000 kWh per year. The state has five electricity distribution networks: CitiPower, United Energy, Jemena, Powercor, and AusNet. The Victorian Default Offer (VDO) provides the regulated reference price for eligible Victorian customers.

Gas is distributed across Victoria by Jemena Gas Networks, Australian Gas Networks, and Multinet Gas depending on location. Gas contestability thresholds vary by network zone.

Commercial energy broker VIC

QLD

Queensland

Queensland has two electricity distribution network service providers: Energex (south-east QLD) and Ergon Energy (regional and rural). The electricity contestability threshold is 100,000 kWh per year.

Gas distribution in Queensland is managed by Jemena and Australian Gas Networks depending on location. Gas contestability thresholds vary by network zone.

Commercial energy broker QLD

SA

South Australia

South Australia has a single electricity distributor, SA Power Networks, and a contestability threshold of 160,000 kWh per year. SA has historically experienced some of the highest and most volatile wholesale electricity prices in the NEM.

Gas distribution across SA is managed by Australian Gas Networks (formerly Envestra). Gas contestability thresholds vary by network zone.

Commercial energy broker SA

Zembl is an independent energy procurement specialist and total business energy partner. For large businesses across Australia, Zembl helps save time and money on electricity and gas: a professionally managed procurement process to secure competitive rates, and ongoing support to identify ways to use less and ultimately pay less for energy over the contract term.

For businesses eligible for commercial energy contracts, Zembl manages the full procurement process for both electricity and gas: collecting interval meter data via a Letter of Authority, running a formal competitive tender across a panel of leading retailers, and modelling every offer against the actual load profile of each site so the comparison reflects real cost, not indicative pricing. Eligibility thresholds vary by state and by energy type. See the state pages at the bottom of this page for the specific electricity threshold in your jurisdiction.

Zembl works with a panel of leading Australian energy retailers. For a current list of panel retailers, visit zembl.com.au/suppliers.

What Zembl does

What Zembl does for large businesses

Zembl provides commercial energy procurement and ongoing energy management services for large businesses and multi-site operators across Australia. This covers the full scope of procurement, from data collection through to contract execution and ongoing account management.

Full procurement management

Manages the full commercial electricity and gas procurement process, from interval data collection and tender preparation through to offer modelling and contract execution.

Formal competitive tender

Runs a formal competitive tender with a panel of leading retailers, so retailers compete on price and terms based on the actual load profile of each site.

Direct contract negotiation

Negotiates commercial energy contracts directly with retailers on the customer's behalf, with no obligation to accept any offer at any stage of the process.

Ongoing energy intelligence

Provides ongoing energy intelligence throughout the contract, including invoice validation and network tariff monitoring to identify unexpected cost movements.

Multi-site portfolio support

Supports multi-site operators to manage energy costs and data across complex portfolios, including aligning contract terms and consolidating reporting across sites.

Energy efficiency and sustainability

Identifies energy efficiency and sustainability opportunities that reduce consumption and support ESG and sustainability reporting requirements.

Why Zembl

Why choose Zembl for commercial energy procurement

Zembl has helped more than 30,000 Australian businesses manage energy costs since 2009. Over 17 years, Zembl has built strong, long-term relationships with every retailer on its panel, which means retailers are responsive, pricing is competitive, and the tender process runs efficiently.

At the same time, Zembl remains completely independent. There is no financial incentive to favour one retailer over another, and every recommendation is made in the customer's interest, based on their actual load profile and requirements.

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

How it works

How the process works

Zembl's commercial procurement process is structured and fully managed. The seven steps below apply to all large business procurement across Australia.

1

Provide usage data and authority

A signed Letter of Authority (LOA) authorises Zembl to access interval data and account information on the customer's behalf. Interval data covering 12 months is preferred where available, and a recent bill for each site is all that is needed to start the process.

2

Analyse current arrangements

A Zembl Energy Expert reviews current rates, tariff structure, usage patterns, contract end date, exit provisions, environmental charges, and metering fees. This establishes a clear picture of what the business is currently paying and which components are contestable.

3

Run a formal tender

Zembl prepares a tender pack using the site's actual load profile and invites competitive offers from the retailer panel. All retailers price on the same data and assumptions, which is what makes offers genuinely comparable across the contestable components.

4

Review tender outcomes

Zembl provides a written summary of tender outcomes, including energy rates, environmental costs, contract terms, and any conditions. Zembl advises on the option best suited to the customer's needs and risk profile. There is no obligation to accept any offer.

5

Choose

The customer selects their preferred option or chooses not to proceed. There is no obligation at any stage of the process.

6

Manage the transition

Zembl notifies the chosen retailer, manages contract execution and documentation, and coordinates the handover process so the transition is completed without disruption to supply.

7

Ongoing energy intelligence and account management

Zembl provides ongoing reporting, invoice validation, and account management throughout the life of the contract. Each customer is assigned a dedicated account manager for the duration of the contract. At contract expiry, the account manager manages re-tender so the business is never left on an expired arrangement.

How long does the process take?

Start the process six to 12 months before your current contract expires. That window allows time for interval data collection, tender preparation, retailer Q&A, offer modelling, and internal sign-off without time pressure. Once offers are received, retailer pricing typically holds for three to five business days.

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Common questions

Commercial energy broker FAQ

What does a commercial energy broker do?

A commercial energy broker helps businesses procure electricity and gas contracts by running competitive tenders across multiple retailers, comparing offers, and advising on pricing structures and contract terms. Rather than negotiating directly with a single retailer, a business working through a broker accesses pricing from multiple retailers simultaneously. Brokers also support ongoing contract management, including bill validation, network tariff checks, and renewal management throughout the contract term.

How does commercial electricity pricing work?

A commercial electricity bill is made up of contestable and non-contestable components. The contestable components, which retailers actually compete on, include the energy or retail rate, environmental costs, and metering fees. The non-contestable components, which are passed through at cost regardless of retailer, include network charges (set by the distributor), market operator fees, and applicable levies. Understanding this split is important because two retailers can quote different headline rates while the underlying total cost is similar once non-contestable charges are included.

How does a commercial energy broker get paid?

Commercial energy brokers are typically paid through commission structures built into the retail rate, or through direct service fees. For small businesses, this is usually a one-off introductory commission paid by the retailer when the contract is signed. For larger businesses, it is often an ongoing commission calculated as a percentage of energy spend, a metering commission, or a value-added service fee for ongoing contract management. Some brokers charge a direct consulting fee for running a tender or procurement process. The same remuneration structures apply for both electricity and gas procurement. Ask any broker to disclose how they are paid before engaging them.

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

An energy retailer supplies electricity or gas directly and provides its own retail pricing. A commercial energy broker does not supply power or gas. Instead, a broker acts as an independent intermediary, running competitive tenders across multiple retailers and helping businesses compare and negotiate offers. How a broker differs from a retailer is explained in more detail on our blog.

Do I need a commercial energy broker?

Not every business needs a broker. For some, direct negotiation with a single retailer is sufficient. A broker is most valuable when a business has multiple sites, a complex usage profile, limited internal energy expertise, or a contract approaching renewal in a volatile market. For businesses with high energy spend where a difference in contracted rate has significant cost implications, a structured broker-led tender process provides pricing visibility and structured comparison that is difficult to replicate by approaching retailers individually.

Can a commercial energy broker procure both electricity and gas?

Yes. A broker that handles both electricity and gas procurement can run coordinated tenders across both energy types, align contract terms, and provide a single point of contact for the full energy portfolio. This is particularly useful for businesses with sites that use both electricity and gas, where managing two separate procurement processes adds complexity. Not all brokers handle both energy types, so it is worth confirming scope before engaging.

Are commercial energy brokers regulated in Australia?

Energy brokerage in Australia is not regulated in the same way as financial advice. There is no federal broker licensing regime. However, energy markets are governed by the AEMC, the AER, and AEMO, and retailers operate under national and state regulatory frameworks. Gas retailers operate under separate frameworks, including gas distribution access arrangements regulated by the AER. Brokers are subject to general consumer and competition law. When engaging a broker, ask about commission disclosure, retailer panel breadth, and whether they are a signatory to any industry codes such as the National Customer Code for Energy Brokers, Consultants and Retailers.

When should a business start reviewing its energy contract?

Most businesses should begin reviewing their energy contract around 13 months before expiry. Starting too late reduces the ability to run a proper tender and may result in being rolled over onto a default or rollover rate, which is typically less competitive than a tendered rate. For businesses with large portfolios or complex sites, starting the review process earlier allows more time for data collection, market analysis, and a thorough tender process. Timing also matters: electricity and gas pricing are both shaped by wholesale market conditions, and going to market at the right point in the cycle can affect outcomes.