A commercial energy broker helps your business buy electricity and gas more effectively. They sit between your organisation and energy retailers, run a structured comparison process (often a tender), negotiate contract terms, and then manage the switch and ongoing contract administration. The goal is simple: reduce total energy cost and procurement risk, while saving your team time.
In Australia, business energy is rarely just a single “rate”. Depending on your size and location, your bill can include usage charges, demand charges, network tariffs, metering fees and environmental scheme costs. A good broker looks beyond the headline cents per kWh and focuses on the whole-of-bill outcome, contract conditions and operational fit.
What a commercial energy broker actually does day to day
Commercial energy broking is part market analysis, part contract negotiation and part project management. The exact service varies by provider, but most brokers will support some or all of the steps below.
1) Review your bills and usage profile
Brokers typically start by collecting recent invoices and, for larger users, interval (half-hourly) meter data. This helps them understand:
- How much energy you use and when you use it
- Whether demand charges are a major driver of cost
- Which network tariff you are currently on and whether it suits your load shape
- Any unusual fees or billing errors worth querying
This step is important because two businesses with the same annual consumption can have very different costs depending on their peak demand and operating hours.
2) Determine what “market” you are in, SME vs C&I
In most states in the National Electricity Market (NSW, VIC, QLD, SA, ACT), commercial customers broadly fall into:
- SME (small business): often under ~100,000 kWh per year (or spending under roughly $3,000 per month on energy), typically simpler retail offers
- C&I (commercial and industrial): generally above ~100,000 kWh per year (or spending more than roughly $3,000 per month on energy), often with interval metering and more complex pricing
There are state nuances, for example SA commonly uses a higher threshold for some large-market eligibility.
3) Run an energy tender or structured comparison
One of the core energy broker services is going to market on your behalf. That may involve a formal tender to a panel of retailers or a structured quote comparison, depending on your size and requirements.
To request accurate pricing, retailers usually need details such as your NMI/MIRN, interval data, site addresses, preferred contract start date and contract length. A broker prepares the pack, manages retailer questions and ensures quotes are comparable.
4) Negotiate more than just the rate
Retail contracts contain commercial terms that can materially affect outcomes. A broker can negotiate and explain items like:
- Contract length and pricing structure (fixed, blended or other agreed structures)
- Pass-through charges and how network or environmental costs are treated
- Credit requirements, security deposits and billing frequency
- Flex provisions if your consumption changes
- Fees, termination clauses and renewal conditions
For many businesses, the value is not just a lower price. It is avoiding a contract that creates budget shocks or operational headaches later.
5) Recommend an option that matches your risk and budget goals
After collecting offers, a broker should present a clear recommendation based on total cost and fit. This often includes:
- A side-by-side comparison with key assumptions
- Commentary on where pricing sits relative to market conditions
- A view on risk, for example exposure to wholesale movements under certain structures
6) Manage the paperwork and switching process
Once you choose an offer, the broker coordinates acceptance, contract paperwork and the retailer transfer process. For many businesses, this is where time savings are most obvious, especially when multiple sites are involved.
7) Provide ongoing contract and portfolio management
Energy procurement services should not stop when the contract starts. Many brokers provide ongoing support such as:
- Contract end date tracking and proactive renewal planning
- Bill validation and issue escalation with retailers
- Network tariff reviews, particularly after operational changes
- Site additions, closures and portfolio alignment for multi-site businesses
What’s included in energy broker services (a practical checklist)
If you are assessing brokers, use this checklist to compare like for like. Not every provider includes everything.
- Bill and tariff review: Does the broker look at network tariffs and demand drivers, or only usage rates?
- Retailer coverage: How many retailers do they approach and are they transparent about the panel?
- Tender documentation: Do you receive a clear comparison pack with assumptions and key contract terms?
- Negotiation support: Will they negotiate pass-throughs, credit terms, and flexibility clauses?
- Switching and administration: Do they manage the full transfer and follow up first bills?
- Ongoing support: Are renewals and billing queries supported after signing?
- Efficiency and sustainability options: Can they connect procurement decisions with solar, batteries or efficiency upgrades?
How energy procurement services work in Australia
The Australian electricity market has layers. Retailers sell energy to businesses, but underlying costs can be influenced by wholesale market conditions, network charges (set by distribution businesses and regulated), and policy-driven schemes. This is why procurement outcomes vary between locations and customer types.
Key organisations and why they matter
- AER (Australian Energy Regulator): regulates networks and sets/oversees parts of the retail framework in the National Electricity Market
- AEMO (Australian Energy Market Operator): operates the wholesale market and manages system security
- State and territory regulators: oversee retailer licensing and some customer protections, which can differ by jurisdiction
A broker should be able to explain what is controllable (contract structure, retailer terms, tariff selection) versus what is largely outside your control (regulated network charges), then focus effort where it matters.
Do you need a commercial energy broker?
Many businesses can buy energy directly from a retailer, especially very small sites with simple usage patterns. Brokers tend to add the most value when:
- You have a complex bill with demand charges or multiple tariffs
- You operate multiple sites and want contracts aligned
- You are approaching renewal and want a structured market test
- You want help understanding contract risk and non-price terms
- You need internal time back, procurement can become a full project
Zembl also covers common triggers and thresholds in our guide: Do you need an energy broker?
How commercial energy brokers get permission to act for your business
To access data and request quotes, brokers may ask you to sign a Letter of Authority (LOA). An LOA is not a contract to switch. It is permission for the broker to speak with retailers and request information and pricing on your behalf, within stated limits.
If you want a plain-English explanation of what an LOA typically allows, see What’s an LOA and why sign it?.
Common misconceptions about commercial energy brokers
"Brokers only look for the cheapest cents per kWh"
Good brokers focus on total cost and risk. A contract with a low energy rate can still be expensive if demand, network and pass-through terms are not well matched to your operations.
"Brokers will switch you without asking"
Reputable providers will present options and only proceed once you approve a specific offer. Permissioning through an LOA should be clearly defined and time-limited.
"Broker support ends once you sign"
Many businesses benefit from ongoing support such as renewal planning, tariff checks and billing queries, particularly if you have multiple sites.
Questions to ask before choosing a commercial energy broker
- How are you paid, and what fees or commissions apply?
- Which retailers are included in your tender, and why?
- Will you review network tariffs and demand charges, or only energy rates?
- What reporting do we receive, and will you provide a recommendation?
- What happens after we sign, do you support billing issues and renewals?
- Do you have experience with our industry and operating hours?
How Zembl helps: Commercial energy broker services built for Australian businesses
Zembl supports businesses with a clear, end-to-end process that combines procurement with ongoing account support. Depending on your needs, our energy procurement services can include:
- Bill and tariff reviews, including interval data analysis where relevant
- Obligation-free energy tenders to a vetted panel of retailers
- Negotiation support on pricing structures and key contract terms
- Switching coordination and retailer liaison
- Ongoing contract management so you avoid rolling onto uncompetitive rates
- Optional support for efficiency and sustainability initiatives through trusted partners
If you would like to understand what this could look like for your sites, start with a quick review of a recent invoice and contract end date.
Frequently asked questions
Is an energy broker the same as an energy retailer?
No. A retailer sells you electricity or gas under a contract. A broker helps you compare options, negotiate and manage procurement, then you still sign a contract with a retailer.
How long does commercial energy procurement take?
Timeframes vary by complexity and the quality of the data available. Many tenders can be run in days once bills and interval data are provided, but complex portfolios can take longer due to site variations and internal approvals.
Can a broker help if we have multiple sites across different states?
Yes. Multi-site portfolio management is a common reason businesses engage commercial energy brokers. The aim is to reduce admin, align renewal dates where possible, and improve pricing through scale and consistency.
Can brokers help with sustainability goals?
They can help you evaluate procurement options that support sustainability strategies, such as renewable electricity products, and connect you with efficiency or on-site generation pathways where appropriate.
What do I need to provide to get started?
Usually a recent bill (or a few), site address details, and your preferred contract start date. For larger users, interval data helps retailers price more accurately. A broker may request an LOA to access information and obtain offers on your behalf.
Related Zembl resources:
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