To choose a commercial energy broker, focus on transparency, market access, and capability: confirm which retailers they can actually approach, how they get paid (fees and commissions), what authority you are granting them under a Letter of Authority (LOA), and whether they can explain pricing, tariffs, and risk in plain English. Then validate all of that with a short checklist and watch for red flags before you sign anything.
This guide gives you a practical, Australian-market checklist you can use to compare brokers side by side, plus a clear list of red flags that usually mean you should keep looking.
Why choosing the right broker matters in Australia
In the Australian commercial energy market, your bill is usually more than a single cents-per-kWh rate. Depending on your site and tariff, total cost can include network charges, demand charges, environmental scheme costs, metering, and sometimes pass-through items. That means a broker who only talks about headline rates can miss the biggest cost drivers.
A good broker helps you understand options and trade-offs, and helps you avoid common problems like rolling onto an uncompetitive default rate when a contract ends.
Quick context: What a commercial energy broker does
A commercial energy broker typically compares offers from multiple energy retailers, runs a structured tender (especially for multi-site or higher-usage customers), explains contract structures, and manages the switching paperwork. Some brokers also provide ongoing support during the contract term.
If you want a deeper overview, see Zembl’s guide to commercial energy brokers.
Before you start: Get your information ready
You will get more accurate quotes, and a faster process, if you can provide:
- Recent electricity and gas bills for each site (ideally the last 2 to 4 bills, or 12 months if available)
- Site identifiers: NMI (electricity) and MIRN (gas)
- Current contract end date(s) and any rollover or notice provisions
- Whether sites are single or multi-metered, and whether any are in embedded networks (if so, options can be limited)
- Any known operational changes coming up: extended hours, new equipment, new sites, solar, electrification, closures
Many brokers will ask you to sign an LOA to access interval data and contract details. If you are not sure what an LOA does, read what an LOA is and why you might sign one before you proceed.
Choose a commercial energy broker checklist
Use this broker checklist to score each provider. For procurement governance, it can help to keep a simple 0 to 2 score per line item (0 = not met, 1 = partially, 2 = clearly met), then compare totals.
1) Retailer panel and market access
- Ask which retailers they can approach for your state(s) and customer class (SME vs C&I). Ask for the list in writing.
- Check whether they can go beyond a small panel if the best deal is outside their usual relationships.
- Confirm they can manage multi-site tenders if you have multiple locations, and whether they can align contract end dates.
- Ask how many retailers typically respond for businesses like yours, and why some might not.
2) Fee structure and commission transparency
- Get a clear explanation of how they are paid: fee-for-service, commission, or a mix.
- Ask what the total cost is, not just the method. If it is commission-based, ask whether it is a cents-per-kWh adder, a percentage, or another mechanism.
- Ask where it shows up: as a separate line item, embedded in the rate, or invoiced directly.
- Ask whether different retailers pay different commissions and how that is managed to avoid conflicted recommendations.
If a broker cannot explain remuneration clearly, treat that as a procurement risk.
3) LOA and authority boundaries (governance)
- Read the LOA carefully and confirm whether it only authorises data access and tendering, or whether it also authorises contract acceptance.
- Set limits where needed, for example “obtain offers only” and “no authority to sign contracts”.
- Confirm the LOA duration and how to revoke it.
- Confirm who in your business is authorised to sign and align it with your internal delegation of authority.
4) Capability in tariffs, demand charges, and bill accuracy
- Ask them to explain your current tariff and what drives cost at your sites (usage, demand, time-of-use, capacity, power factor, seasonal peaks).
- Ask what analysis they perform on interval data, and whether they model demand impacts.
- Ask if they check billing accuracy and can support invoice queries after you switch.
In many commercial bills, the “best rate” may not bethe best outcome if tariff structure and demand settings are wrong.
5) Contract structure, risk, and pass-throughs
- Ask which contract structures they recommend: fixed, pass-through, hybrid, or wholesale-linked arrangements (where suitable).
- Ask what is included vs pass-through: network charges, environmental scheme costs, metering, and any indexation.
- Ask how they explain risk in a way your finance team can sign off, including budget volatility and exposure to market movements.
- Ask about flexibility clauses: site roll-in roll-out, volume bands, novation if your entity changes, early termination fees.
6) Process, documentation, and audit trail
- Ask what you will receive: comparison tables, summary of assumptions, and a written recommendation.
- Ask how they prove competitiveness: number of retailers approached, timestamp of offers, and an explanation of why the selected offer is best-fit.
- Ask how they handle privacy and data security for bills and interval data.
7) Ongoing support after the contract is signed
- Ask what happens after signing: who helps with transfer issues, first bill validation, and ongoing retailer queries.
- Ask how they manage renewals so you do not fall onto an uncompetitive rollover rate.
- Ask whether they support efficiency or on-site solutions such as solar, batteries, or demand management, and how those recommendations are evaluated commercially.
8) Industry experience and references
- Ask for case studies in your sector (hospitality, manufacturing, property, health, education, logistics).
- Ask for references you can contact, ideally for a similar size and tariff type.
- Ask how they handle complaints and request a copy of their dispute resolution process.
Red flags when choosing an energy broker
These red flags do not always prove a broker is unsuitable, but they are strong signals you should slow down, ask more questions, or get a second opinion.
- They will not disclose how they are paid, or they downplay commissions as “free”.
- They push you to sign an LOA immediately without explaining scope, limits, and duration.
- They only talk about a headline rate and cannot explain tariffs, demand charges, pass-throughs, or the full bill outcome.
- They cannot name their retailer panel or they say “we work with everyone” but cannot provide evidence.
- They claim guaranteed savings without seeing your bills, interval data, and contract terms.
- They avoid providing documentation such as a comparison table, assumptions, or written recommendation.
- They recommend a long contract term by default without explaining market timing, risk, and flexibility trade-offs.
- They cannot explain what happens if your business changes (new sites, closures, solar installation, change of entity, lease changes).
How to compare two brokers quickly (a simple scorecard)
If you are choosing between two or three brokers, use a one-page scorecard:
- Market access: number of relevant retailers, ability to run a tender, multi-site capability
- Transparency: clear remuneration disclosure, documented process, clear assumptions
- Technical capability: tariff and demand analysis, interval-data analysis, bill validation support
- Commercial capability: contract risk explanation, pass-through clarity, flexibility clauses
- Service model: named account manager, response times, ongoing support, renewal management
Frequently asked questions
Is a commercial energy broker regulated in Australia?
Commercial energy brokering is not regulated in the same way as financial advice. However, retailers operate under energy regulatory frameworks, and brokers must still comply with Australian Consumer Law and other relevant obligations. In practice, you should manage this by insisting on clear documentation, commission disclosure, and appropriate internal approvals.
Do I have to use a broker to get a good deal?
No. Some businesses negotiate directly with retailers. However, a broker adds a lot of value when you want broader market visibility, a structured tender, help interpreting offers, or support managing multiple sites and renewal timing.
What is the biggest mistake businesses make when choosing a broker?
Signing an LOA or committing to an offer without understanding total cost, including demand and pass-through items, and without understanding how the broker is remunerated.
Next step: Get a second set of eyes on your current contract
If you want an independent view on whether your current deal is competitive, and what you should be asking any broker, Zembl can help you run a structured review and tender process.
- Are commercial energy brokers worth it?
- Learn more about energy broker services
- Read about Zembl’s commercial energy procurement approach
- Explore the longer procurement checklist in Zembl’s C&I energy procurement checklist
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