If you run a business in Australia, you know the horror of an unexpectedly massive energy bill. It’s that awful moment — opening the invoice, doing a double-take, maybe muttering a few colourful words. (We’ve all been there.)
It’s tempting to think finding a cheaper energy supplier is just a quick Google search away. But the real truth? Most businesses either get stuck on default rates or sign flashy “low cost” deals that quietly slug them with hidden fees later. The cheapest rates aren’t found in obvious places — they’re dug out by sharp-eyed energy brokers who understand the system inside out.
Let’s unpack how it works, without the jargon.
Why is business energy pricing so confusing?
For starters, business energy plans aren’t like residential ones. They’re often custom-priced based on:
- Usage profile (how much and when you use energy)
- Demand charges (your highest usage in a short period)
- Contract length
- Metering type (basic, interval, or smart meter)
And here’s the catch — even two cafés on the same street could get wildly different quotes. One might pay 25c/kWh, another 19c/kWh. Makes no sense on the surface, right? Welcome to Australian energy pricing.
Throw in government regulations, carbon charges, and supply chain shocks, and it becomes a guessing game unless you’re deep in the industry.
What exactly do energy brokers do to get lower prices?
Good energy brokers aren’t just price checkers. They’re negotiators, market analysts, and — frankly — deal-makers.
Typically, a broker will:
- Audit your energy use (last 12–24 months).
- Profile your load to find out peak/off-peak patterns.
- Approach multiple retailers (not just one or two) for bespoke quotes.
- Leverage bulk buying power if they manage many clients.
- Time the market — securing rates before seasonal price spikes.
Some brokers even get “special offers” exclusive to their networks, thanks to long-term retailer relationships. You won’t find those advertised on flashy comparison websites.
In short: they dig deeper than you could — unless you’re ready to moonlight as an energy procurement specialist.
Can small businesses benefit too?
Absolutely. This isn’t just a game for factories and mega-corporations.
Take, for example, a suburban physio clinic I spoke with recently. They weren’t using huge amounts of power, but by switching through a broker, they shaved $720 off their annual bill — enough to cover a new treatment table. Not bad for 30 minutes of paperwork.
Generally, if your business spends $1,500+ annually on electricity, it’s worth getting a broker to quote. The savings often outweigh any commissions or fees involved (which good brokers disclose upfront).
How to tell if you’re paying too much right now?
Here’s a quick litmus test:
- You’ve been on the same plan for over 12 months.
- You never negotiated when you signed up.
- You’ve seen news headlines about price drops but your bills stayed high.
- You’re on a “standing offer” or default market offer (DMO).
If any of these ring a bell, chances are you’re overpaying — by hundreds or thousands every year. (And no, loyalty doesn’t get rewarded in this industry. That’s the kicker.)
Which suppliers offer the cheapest rates for businesses?
It depends — on where you are, what you use, and when you use it.
That said, a few general trends for 2025:
- Newer retailers (think Next Business Energy, Mojo Power) often outcompete the big guns on price for SMEs.
- Bundle offers (electricity + gas) tend to unlock better rates, especially in colder states like VIC and TAS.
- Flexible tariffs work best for solar-heavy or off-peak businesses (think gyms, bakeries).
Still, the cheapest option changes monthly. What’s dirt cheap in May could be overpriced by September.
That’s why businesses relying on one-time quotes are often caught out. Energy pricing’s a moving target.
What are the biggest traps when hunting for business energy deals?
- Falling for teaser rates: Retailers love showing off low per-kWh rates — but bury nasty daily supply charges.
- Ignoring demand tariffs: Peak demand can spike bills even if your average usage seems low.
- Missing expiry dates: Contracts often revert to hideous “out-of-contract” rates if you don’t proactively renegotiate.
Anyone who’s forgotten a contract expiry knows — that “silent” rollover can quietly steal thousands over time.
Essential questions to ask an energy broker
Before signing anything, savvy businesses ask:
- “How many retailers do you approach when quoting?”
- “How are you paid — by commission, fee, or both?”
- “Do you benchmark your rates against independent market data?”
- “Will you monitor and re-tender when my contract ends?”
Transparency matters. Brokers who answer clearly (and without squirming) are usually the ones who’ll also fight for a better deal when your next renewal rolls around.
(That taps into Cialdini’s principle of Authority — you trust those who demonstrate deep knowledge and openness.)
Quick FAQ
How much can businesses save using energy brokers?
On average, 10–25% off their energy spend — but I’ve heard of savings up to 40% for large users who were stuck on default tariffs.
Are energy brokers independent?
Some are, some aren’t. The best brokers declare if they favour certain retailers and offer “whole-of-market” comparisons.
Can I leave my current contract if I find a better deal?
It depends. Some contracts have exit fees, others don’t. Always check your Terms and Conditions — or better yet, get a broker to review them for you.
A Real-World Wrap-Up
In a world where energy prices spike with little warning, relying on gut feel or last year’s bill isn’t a strategy — it’s a gamble. Businesses serious about cutting costs are turning to energy brokers to play smarter, not harder.
Finding the cheapest rates? It’s not luck. It’s about having someone in your corner who knows where the real deals live — and how to wrestle them loose.
For a clear-eyed look at how different brokers stack up, this detailed comparison guide will help.
And if you’re nerdy about the energy market (no shame here), the Australian Energy Regulator’s Retail Market Performance Reports are worth a skim.