Choosing between energy brokers and suppliers can feel like standing at a fork in the road, squinting at two blurry signs. Which way leads to lower costs? Better service? Less hassle? You’re not alone if you feel a bit stuck.
Quick Answer:
- Energy brokers offer more choice and negotiation power but charge a fee (sometimes included in your contract).
- Suppliers sell their own plans directly, often with fewer options but possibly faster onboarding.
The best option for your business energy needs depends on your size, usage patterns, and appetite for shopping around.
Let’s unpack it properly.
What’s the difference between an energy broker and an energy supplier?
At first glance, they can seem similar—they both want to get your lights on. But scratch the surface and the differences are pretty clear.
- Energy brokers act like middlemen. They don’t supply electricity or gas themselves. Instead, they help you compare offers across multiple suppliers. Think of them as matchmakers for businesses and power companies.
- Energy suppliers generate or retail energy directly to you. You’re dealing with the source, no middleman involved.
Real-world example?
Imagine you’re buying coffee beans for your café. An energy broker is like a wholesaler offering beans from a dozen roasters. A supplier is the roaster selling only their own beans. Different experiences, right?
Why might a business choose an energy broker?
Plenty of businesses—especially SMEs—find that energy brokers can save them serious time and headaches.
Top reasons businesses use energy brokers:
- Access to more options: Brokers can often secure offers you won’t see advertised.
- Negotiating leverage: They know the market, the tactics, and when suppliers are willing to deal.
- Time savings: No ringing five different call centres and waiting on hold.
- Market insights: Good brokers can tell you whether rates are likely to rise or fall based on wholesale trends.
Anyone who’s spent hours trying to compare complex energy plans online knows it’s trickier than it looks. Small differences in fixed rates, peak usage tariffs, and contract terms can end up costing thousands over a few years.
That’s where a broker’s expertise shines.
Of course, you might wonder—isn’t there a catch? In some cases, yes:
- Some brokers work with a limited panel of suppliers, meaning you’re not seeing every possible deal.
- Broker commissions (built into your rates) can sometimes blur transparency.
Moral of the story: always ask how your broker gets paid.
When is it better to work directly with an energy supplier?
Sometimes, cutting out the middleman makes sense.
Reasons you might go direct to a supplier:
- You want full control over negotiations and contract terms.
- You already have strong internal energy expertise (or a procurement team).
- Your usage is small and your deal isn’t complex enough to need brokering help.
- You have loyalty discounts or retention offers with your existing supplier.
Large corporations with multiple sites sometimes prefer direct relationships for consistency, reporting, and bundled deals (e.g., energy + green energy certificates + demand response programs).
But if you’re a smaller business—say, a bakery or a gym—you might find suppliers don’t roll out the red carpet unless you’re a big-ticket account.
What are the risks of using an energy broker?
Like any service industry, quality varies.
Some risks include:
- Partial market representation: Not all brokers access all retailers.
- Opaque commissions: You might pay more over the life of the contract without realising.
- Pushy sales tactics: Some brokers are incentivised to close deals quickly, not necessarily to find you the best long-term outcome.
Pro tip:
Stick with energy brokers who are transparent about their relationships with suppliers, and who happily provide a full market comparison—even if it means they earn less commission. The Australian Energy Regulator provides helpful consumer tips to spot a trustworthy broker.
How do you choose between an energy broker and supplier?
Ask yourself these questions:
- How complex are my energy needs?
(Multiple sites? Solar feed-ins? Peak usage spikes?) - Do I have time to compare offers properly?
- Am I confident negotiating commercial terms?
- Do I value independent advice?
- Would I rather delegate and get expert help?
If you answered ‘yes’ to questions 2, 4, or 5, an energy broker might be your best bet.
If you answered ‘yes’ to 1 or 3 and have procurement confidence, a direct supplier relationship could work well.
FAQ: Quick Answers to Common Business Energy Questions
Are energy brokers worth it for small businesses?
In many cases, yes. Brokers can often unlock better pricing through bulk-buying arrangements and save you hours of research.
Can an energy supplier match broker rates?
Sometimes. If you show a supplier a broker’s quoted offer, they may sharpen their pencil—but don’t count on it.
How do energy brokers get paid?
Most receive a commission from the supplier when you sign a contract. Some brokers offer fee-for-service models instead, which may suit larger businesses wanting full transparency.
Final thoughts: Which path suits your business energy journey?
At the end of the day, there’s no “one size fits all” when it comes to business energy management.
If you want choice, guidance, and negotiation muscle, working with experienced energy brokers makes a lot of sense.
If you prefer simplicity, direct control, and fast decisions, sticking with a supplier may be smarter.
Most Australian businesses under 500 employees find brokers invaluable—especially if they’re serious about keeping overheads lean.
For a closer look at how different brokers stack up, you might find this deep dive useful: How Termina Compares to Other Australian Business Energy Brokers