Are commercial energy brokers worth it?

Quick answer: is a broker worth it?

Often yes if you are a small or large business looking to save money on your energy bills, operate from multiple different sites, have a complex tariff or demand profile, have an upcoming contract expiry, or lack in-house procurement time.

What a commercial energy broker actually does

A commercial energy broker is an intermediary who helps businesses compare retailers, run a procurement process and select a contract. Unlike a retailer, they do not generate or supply electricity or gas. They help you go to market.

For Australian businesses, that typically includes:

Collecting and checking account details (NMI for electricity and MIRN for gas) and recent invoices
Analysing usage and, for larger sites, interval data and demand peaks
Requesting quotes from a panel of retailers and comparing offers
Explaining contract structures, pass-through charges and non-price terms
Managing paperwork and retailer transfer coordination
Supporting renewals and contract timing strategy

If you want a deeper definition of the role, read what does a commercial energy broker do?

Do energy brokers save money?

Energy brokers can save money, but it depends on what is driving cost in your bill. Many businesses focus only on the “cents per kWh” rate, but savings often come from multiple levers, including:

Retail rate and margin negotiation: competitive tension across retailers can improve pricing and terms.‍
Network tariff suitability: being on the wrong tariff can increase charges even if your energy rate looks competitive.‍
Demand charge management: reducing or reshaping peak demand can materially change monthly bills.‍
Avoiding rollover or out-of-contract rates: a common and expensive issue when contracts are not actively managed.‍
Reducing contract risk: contract structure matters in volatile wholesale conditions, especially for larger users.

Some broker-led processes also identify billing anomalies and contract misalignment that can create savings without changing retailers.

Pros of using a commercial energy broker

1) Better market coverage than going direct

Going direct can work if you have time to contact multiple retailers, understand each quote, and negotiate terms. In practice, many businesses get one or two quotes, and then stop. A broker can run a structured comparison and bring multiple retailers to the table, which may improve both pricing and contract flexibility.

2) Better decisions on contract structure, not just price

Commercial energy contracts can be fixed, variable, pass-through, or hybrid. The best fit depends on your business’ risk appetite, ability to manage exposure and budgeting needs. A broker should help you understand trade-offs, not just present a cheapest headline rate.

3) Time savings for internal teams

Energy procurement can be a project: data gathering, tendering, reviewing terms, responding to retailer questions, and coordinating a switch. For finance and ops teams, outsourcing this process can deliver a meaningful productivity benefit.

4) Help with multi-site and portfolio alignment

Multi-site businesses often have staggered end dates and mixed tariff structures across locations. A broker can help align renewal dates, reduce administrative load and create a clearer procurement calendar.

5) Ongoing support and governance

A good broker will be transparent about remuneration, document their recommendations, and help you build a repeatable procurement process. For businesses with governance requirements, this documentation can be as valuable as the savings.

Cons and risks of using a commercial energy broker

1) Commission structures can reduce transparency

Many brokers are paid by retailers. That can be fine, but it must be disclosed clearly, and you should be comfortable that the recommendation is in your best interest. If you cannot get a straight answer about how the broker is paid, that is a red flag.

2) Limited retailer panels can limit outcomes

Not all brokers have access to the same set of retailers and products. A narrow panel can mean fewer competitive responses and less leverage. Ask how many retailers typically quote for your profile and whether they can go to market beyond their panel.

3) Over-optimising for the headline rate

Some procurement processes focus on cents per kWh and ignore demand charges, tariff suitability and pass-through costs. That can produce a “cheaper” contract that costs more in practice.

4) Lock-in, exit fees and contract flexibility

Some contracts include volume commitments, early termination fees or constraints that can be problematic if your operations change. A broker should help you identify these risks before you sign.

5) LOA misunderstandings

Most commercial broker processes require a Letter of Authority (LOA) so the broker can request data and obtain quotes. This is standard, but you should understand exactly what you are authorising, for how long and what the limits are. Read this explainer: What is an LOA and why sign it?

How to calculate ROI from using a commercial energy broker

ROI is the cleanest way to answer “is a broker worth it?”. You can estimate ROI using a simple model:

Step 1: Estimate potential annual savings

Start with your current annual electricity and gas spend. Estimate a conservative savings range based on what could realistically change:

Retail rate improvement
Tariff or demand improvements
Avoided rollover pricing
Process improvements and fewer billing issues

Even if you do not assume a large percentage, small changes on a large base can be meaningful.

Step 2: Estimate broker cost

Broker cost can be:

Direct fee: an explicit consulting or procurement fee.
Retailer-paid commission: typically built into the retail rate or paid by the retailer post-signature.

You should ask for clear disclosure of how remuneration works, and whether it changes depending on retailer or product.

Step 3: Include internal time savings (optional, but real)

Estimate how many internal hours procurement would take without a broker, then multiply by a loaded hourly rate for staff involved. This is not always captured in “energy savings”, but it matters for ROI.

ROI formula (simple)

ROI (%) = (Net benefit ÷ broker cost) × 100

Where:

Net benefit = (annual savings + internal time savings) − broker cost

Example ROI scenario

If your business spends $120,000 per year on energy, and the broker-led process achieves $9,000 in annual savings (7.5%), and your internal time savings are worth $1,500, then total benefit is $10,500. If the broker cost is effectively $2,500 in built-in commission, then:

Net benefit = $10,500 − $2,500 = $8,000
ROI = ($8,000 ÷ $2,500) × 100 = 320%

When a commercial energy broker is most worth it?

Contract expiring in the next 3 to 6 months (or you suspect you are on rollover pricing)
Multi-site portfolios with inconsistent end dates and pricing
High demand charges or volatile monthly bills
Complex tariffs (TOU, demand-based, seasonal)‍
Large users where procurement timing and structure can materially affect costs
Small business users that want a quick bill comparison and switch to a cheaper plan.

For a practical view of how commercial energy procurement works, see Zembl’s commercial energy procurement page.

When using a broker might not be worth it

Extremely low energy spend where the savings upside is limited
The broker cannot clearly explain remuneration or panel coverage

Questions to ask before you engage a broker

How are you paid, and is the commission built into my rate?
Which retailers are on your panel, and how many will you approach for my sites?
Will you show me a like-for-like comparison including pass-through charges and key terms?
Do you assess network tariffs and demand charges, or only usage rates?
What ongoing support is included after signing?
What does the LOA allow you to do, and how long is it valid?

Australian market context to keep in mind

Business energy outcomes depend heavily on local market structure. In the National Electricity Market (NEM), wholesale and network costs can shift, and state-based environmental schemes can affect charges. The market is governed by bodies including AEMO, AER and AEMC, while retailers must comply with national and state regulatory frameworks.

Even though commercial energy brokerage is not regulated like financial advice, businesses should still expect clear disclosure, accurate comparisons and fair dealing under Australian consumer and competition law.

So, are commercial energy brokers worth it for your business?

If you spend money on energy, or have energy complexity or time constraints, a broker can be worth it when they deliver transparent market comparison, contract clarity and measurable savings, not just a quick switch.

If you want an obligation-free check of your current rates and contract timing, Zembl can help you compare options and understand where savings might come from. Learn more about commercial energy brokers or explore Zembl’s commercial energy services.

Frequently asked questions

Is a broker worth it for small business energy?

Yes, a broker is worth it for small business energy in many cases. A simple bill comparison can uncover a cheaper rate or a better plan structure, and for a lot of small businesses that can mean thousands of dollars per year in savings, especially if you have been on the same plan for a while or have rolled onto a higher rate after a contract ended.

Do energy brokers save money or just save time?

Both. Many businesses see savings from improved rates, better contract structure, or avoiding rollover pricing. Time savings can also be material, especially if procurement would otherwise take multiple stakeholders and several weeks.

What is the main downside of using an energy broker?

The main risk is lack of transparency. If you do not understand how the broker is paid, what retailers they can access, or what assumptions they used in comparisons, you may not get the best outcome. A good broker welcomes these questions and documents answers.

Do I need to sign an LOA to get quotes?

Often yes, particularly for larger or more complex accounts. An LOA authorises the broker to request information and obtain quotes on your behalf. Always read the scope and validity period before signing.