Most people don’t think much about who supplies their electricity—until the bill spikes or a contract runs out. Then comes the question: Should I deal with a supplier directly, or go through a broker?
Here’s the short answer:
A supplier sells you the electricity or gas itself. A broker, on the other hand, helps you find the best deal—often across multiple suppliers. Think of a supplier as the source, and a broker as the matchmaker.
But if you’ve ever felt confused by energy contracts, terms, or why your rates fluctuate every few months, you’re not alone. Let’s unpack what makes these two players different—and why it matters for households and businesses alike.
What does an energy supplier actually do?
Energy suppliers (sometimes called retailers) are licensed companies that sell electricity and gas to consumers. In Australia, they purchase bulk energy from generators (like wind farms or coal stations) and resell it to homes and businesses through the national grid.
Some well-known suppliers include Origin, AGL, EnergyAustralia, and Red Energy.
They handle things like:
- Billing and payment plans
- Customer service and complaint handling
- Managing your energy usage data
- Setting your tariff (price per kWh or MJ)
You sign a contract with a supplier, either fixed-term or ongoing. They’re responsible for keeping your power flowing and charging you for it.
Supplier Example:
Let’s say you run a café in Newcastle. Your current supplier is charging 35c/kWh, and you’re wondering if that’s high. To find a better rate, you’d need to contact other suppliers directly and compare prices, terms, and exit fees. Time-consuming, right?
What does an energy broker do?
An energy broker is a third-party service that helps you compare offers from multiple suppliers, usually at no cost to you. They’re not selling you energy directly—they’re helping you choose who should.
Think of them like mortgage brokers, but for your power bill.
They typically work with businesses (small to enterprise-level), but some also help households.
What a broker can do:
- Analyse your energy usage and needs
- Compare offers from various suppliers
- Negotiate better deals (especially for larger consumption)
- Provide contract management and renewal alerts
- Bundle multisite or multi-meter contracts
And here’s the kicker: brokers are often paid by the supplier when you sign up through them. That means you don’t foot the bill.
Broker Example:
Imagine a chain of hair salons across Victoria. Each salon has different usage patterns and peak times. Instead of managing 10 different contracts, an energy broker can consolidate them into a single, optimised deal—saving thousands per year and hours of admin.
Energy broker vs supplier: What’s the key difference?
Here’s a simple breakdown:
| Feature | Energy Supplier | Energy Broker |
|---|---|---|
| Sells the energy | Yes | No |
| Compares multiple offers | No | Yes |
| Sets the contract terms | Yes | No (but negotiates) |
| Charges you directly | Yes | Not usually |
| Works with multiple retailers | No | Yes |
| Helps manage contracts | No | Often |
In short: Suppliers sell. Brokers help you choose who to buy from.
Should I use a broker or deal direct?
Great question. It depends on your situation:
You might choose a supplier directly if:
- You’re comfortable comparing energy plans online
- You have a small home or single-site business
- You want a quick signup and simple billing
You might use a broker if:
- You manage multiple properties or a business
- You’ve got complex usage needs (e.g. solar, battery, time-of-use rates)
- You want expert help without the hassle
- You’re time-poor or find energy bills frustrating
Anyone who’s tried comparing energy rates on their own knows: it’s not as straightforward as it seems. Pricing structures change often. Some suppliers offer “free” perks but bake costs into peak usage. Brokers help you cut through that noise.
Are energy brokers regulated in Australia?
Yes—but differently from suppliers.
Energy suppliers must hold a retail licence and are regulated by the Australian Energy Regulator (AER). They’re bound by strict rules about pricing transparency, billing, hardship programs, and complaints.
Energy brokers, on the other hand, are not always formally licensed—but they must comply with fair trading laws and codes of conduct. Some brokers voluntarily join industry associations like the National Customer Code for Energy Brokers, which improves transparency.
Tip: Always check if a broker discloses their commissions and works with a wide range of suppliers—not just a few.
How do brokers get paid?
Most energy brokers work on a commission-based model. That means when you sign a contract through them, they receive a fee from the supplier.
Good brokers will be transparent about this. Some even offer “fee-for-service” options if you’d prefer an unbiased quote.
It’s similar to how a real estate agent gets paid by the seller—but still guides the buyer.
FAQ: Quickfire Answers
Q: Can a broker save me money on my power bills?
A: Yes—especially for businesses or high-usage homes. Brokers can unlock group discounts or negotiate better terms than what’s advertised publicly.
Q: Is there a downside to using a broker?
A: Not usually. But always ask if they compare the full market or just a few retailers. Limited choice can limit your savings.
Q: Can I switch from a broker to a supplier later?
A: Absolutely. Your contract is still with the supplier—they just helped you get there.
Final Thought
The choice between an energy broker and a supplier isn’t about right or wrong—it’s about how much time, control, and guidance you want.
For busy business owners or anyone managing multiple sites, an energy broker can be an invaluable ally. For those who like to research and manage bills themselves, dealing directly might suit just fine.
To dive deeper into how an energy broker can support your energy decisions, particularly for businesses across Australia, explore their unique value in simplifying complexity and unlocking cost efficiencies.
And for broader guidance, the Australian Government’s Energy Made Easy site is a great place to start comparing.