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

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A commercial energy broker is an independent intermediary that helps businesses compare electricity and gas retailers, negotiate contract terms, and secure competitive commercial energy pricing.

Unlike energy retailers, commercial energy brokers do not generate or supply electricity or gas. Their role is to manage the procurement process on behalf of a business, running competitive tenders, analysing pricing structures, and advising on contract selection.

Commercial energy brokers typically work with multiple retailers across the National Electricity Market (NEM) and other Australian gas markets. 
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, brokers source and compare offers from multiple retailers to provide broader market visibility. Services typically include:
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Running competitive electricity and gas tenders
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Comparing retailer offers across multiple suppliers
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Negotiating contract length and rate structure
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Reviewing pricing models (fixed, pass-through, hybrid)
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Analysing network tariffs and demand charges
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Managing multi-site energy portfolios
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Supporting contract renewals and timing strategy
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Explaining contracts terms, retailer margins and pass-through components
Commercial energy broker case study: Electricity & gas savings example
Ord Minnett Limited unlocks $41,000 in energy savings
How commercial energy procurement works
1. Usage & contract review
Historical usage data, interval data (where available), current contract terms, and site identifiers (NMI for electricity, MIRN for gas) are collected and analysed to understand load profile and pricing structure.
2. Market strategy & timing
The broker assesses current wholesale market conditions, forward pricing trends, and contract expiry timing to determine the most appropriate procurement approach. 
3. Competitive market tender
Multiple energy retailers are invited to submit pricing based on the business’s load profile, contract preferences, and risk appetite. 
4. Offer comparison & commercial analysis 
Retailer responses are evaluated across:

- Energy rates (c/kWh or $/GJ) 
- Retailer margins 
- Network and pass-through components 
- Contract structure and term length 
- Risk exposure (e.g. wholesale pass-through elements) 
5. Recommendation & decision support 
The energy broker presents comparative pricing and explains structural differences between offers, allowing the business to make an informed decision.
6. Contract execution & implementation
Once a retailer is selected, the contract is executed directly between the business and the retailer. Where applicable, site transfers and onboarding processes are coordinated. Some commercial energy brokers also provide ongoing contract support throughout the term.
Commercial energy brokers vs energy retailer
A common question is how a commercial energy broker differs from an energy retailer. Retailers sell energy directly. Brokers help businesses compare and negotiate between retailers.
Commercial energy broker
Energy retailer
Acts as an intermediary
Supplies electricity and/or gas
Runs competitive tenders
Provides its own retail offer
Compares multiple suppliers
Represents only its own pricing
Advises on pricing structures
Sets retail rates
How do commercial energy brokers get paid?
Commercial energy brokers are typically remunerated in one of two ways:
Commission-based model
In many cases, the broker receives a commission from the selected retailer. This commission can be incorporated into the contracted retail rate.
Fee-based model
Some brokers can also charge a direct consulting fee for running a procurement process or managing tenders.
Remuneration structures vary and should be clearly disclosed. Businesses should ask how commissions are structured and whether they are built into the retail pricing. Transparency around payment arrangements is an important consideration when selecting a commercial energy broker.
Who we've helped
Are commercial energy brokers regulated?
In Australia, commercial energy brokerage is not regulated in the same way as financial advisory services, however:
Retailer regulatory frameworks
Energy retailers operate under national and state regulatory frameworks.
Market governance bodies
Energy markets are governed by bodies such as the AEMC, AER and AEMO.
Consumer & competition law compliance
Brokers must comply with general consumer and competition law.
Businesses should ensure they understand how a broker operates, including commission disclosure and retailer panel coverage.
When do businesses use a commercial energy broker?
Commercial energy brokers are particularly relevant for SMEs, mid-market businesses, and large commercial organisations managing portfolio energy contracts. They are commonly engaged when:
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A contract is approaching expiry
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A business operates across multiple sites
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Internal procurement capability is limited
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Market volatility creates pricing uncertainty
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A structured, competitive tender process is preferred 
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Greater pricing transparency or cost visibility is required 

Are commercial energy brokers worth it?

For some businesses, direct negotiation with a retailer may be sufficient. For others, competitive market engagement through a broker can provide pricing visibility and structured comparison. Whether using a broker is worthwhile depends on:

Portfolio size and complexity

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

Internal procurement expertise

Businesses with limited in-house energy knowledge may benefit from external support to interpret pricing and contract structures.

Contract timing and market conditions

Energy pricing is influenced by wholesale market conditions. Timing a contract appropriately can impact long-term cost outcomes.

Transparency of remuneration

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

Who we work with

Choosing a commercial energy broker ➔

When evaluating a commercial energy broker, businesses may consider:

Retailer panel breadth

A broker’s retailer panel determines how much of the market they can access. A broader panel generally allows for more competitive tenders and stronger pricing comparison.

Transparency around commission

Businesses should understand how a broker is paid and whether commission is built into the retail rate. Clear disclosure supports informed decision-making.

Experience with similar industries

Energy usage varies across industries. Brokers with relevant sector experience are better equipped to interpret load profiles and contract structures.

Ability to explain pricing structures clearly

Commercial energy contracts contain multiple pricing components. A broker should be able to clearly explain rates, margins, and pass-through costs. 

Ongoing contract support

Procurement does not end at signing. Ongoing support may include contract reviews, billing assistance, and renewal management.

Clear disclosure of remuneration and potential conflicts of interest

Businesses should understand any incentives or relationships that could influence recommendations. Transparent disclosure helps maintain trust. 
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Frequently Asked Questions
What is a commercial energy broker?

A commercial energy broker is an intermediary that helps businesses procure electricity and gas by comparing retailers and negotiating contracts.

Do commercial energy brokers work with electricity and gas?

Yes. Most commercial energy brokers manage both electricity and gas procurement.

Are commercial energy brokers free?

Some brokers operate under commission-based models, while others charge consulting fees. Payment structures should be disclosed.

Can a commercial energy broker help with multi-site contracts?

Yes. Brokers often manage portfolio tenders across multiple sites and states.

How early should a business review its commercial energy contract?

Most businesses on commercial energy contracts begin reviewing procurement options 3–6 months before contract expiry, although larger or multi-site organisations may start earlier.

Early review allows time to analyse usage data, assess market conditions, run a competitive tender if required, and avoid default or rollover rates. In volatile wholesale markets, forward planning can provide greater pricing flexibility and risk management options.

How do I know if I am classed as a small or large business by my energy consumption, and what energy market should I be in?

The small energy market for SMEs (small and medium-sized enterprises) typically includes businesses consuming under 100,000 kWh of electricity or spending less than about $3,000 monthly on energy. Bills for these customers are usually sent quarterly.

On the other hand, the large energy market for C&I (commercial & industrial) businesses consists of those using over 100,000 kWh per year or spending more than about $3,000 a month. In NSW, VIC, QLD, and ACT, a C&I business is defined as one that consumes more than 100,000 kWh annually. In SA, this threshold is set at over 160,000 kWh per year, with bills always issued monthly.

What sets small business (SME) energy customers apart from large business (C&I) customers is that the large business customers can participate in, or qualify for, the wholesale energy market, enabling them to secure forward purchasing at better rates.

To figure out where you stand, simply check your energy bill. With this information, you should have no trouble determining if you've received a SME or C&I energy bill.