Large businesses have always had an advantage in the energy market. They have internal procurement teams, buying power that comes from high consumption volumes, and the resources to run competitive tender processes. Small businesses have none of that which is exactly why commercial energy brokers exist.
But not all brokers are working in your interest. Understanding how the broker market works in Australia is the first step to finding one that actually saves you money rather than costing you more.
What does a commercial energy broker do?
A commercial energy broker acts as an intermediary between your business and energy retailers. Their job is to compare available electricity and gas contracts across multiple providers, negotiate competitive rates on your behalf, and manage the switching process so you do not have to.
For small businesses without a dedicated finance or operations team, this removes a time-consuming and complex task. The Australian energy market has dozens of retailers, hundreds of tariff structures, and pricing that changes constantly. Getting the best deal without expert help is genuinely difficult.
How commercial energy brokers in Australia get paid
This is the part most small businesses do not find out until it is too late.
The majority of commercial energy brokers in Australia are paid by retailers not by you. When a broker recommends a retailer and you sign a contract, that retailer pays the broker a commission, typically between 1 and 3 cents per kilowatt-hour, embedded in your energy rate over the contract term.
This creates a structural problem. The broker's income goes up when your rate goes up. They have a financial incentive to recommend the retailer that pays the highest commission, not the retailer that offers you the lowest price.
It also explains why most commission-based brokers only work with a limited panel of retailers; they have commercial agreements with those retailers and do not compare the full market.
The result is that many businesses that use a traditional energy broker end up paying more than they would have through an independent comparison, while believing they got a good deal.
The small business disadvantage
Small businesses face an additional challenge: volume.
Energy retailers offer their best rates to high-consumption customers large manufacturers, multi-site retailers, hospitals. Small businesses typically do not have the consumption levels that attract competitive wholesale pricing on their own.
Traditional brokers cannot fix this. They negotiate on your behalf as an individual business, which means your rate reflects your size.
The more effective solution is group buying, pooling the purchasing power of thousands of business meters to access rates that would normally only be available to large enterprises. This is how small businesses can genuinely compete on price, not just get a marginally better deal on the open market.
What to look for in a commercial energy broker
Before engaging any energy broker, ask these questions directly:
How are you paid? If the answer is commissions from retailers, understand that those commissions are embedded in your rate and you are paying them. Ask how much.
How many retailers do you compare? A broker with a panel of 5 or 6 retailers is not comparing the full market. Australia's National Electricity Market has dozens of active retailers.
Do you manage my contract after signing? Most commission-based brokers disappear after the contract is signed. The best deal at signing can become uncompetitive within months as wholesale prices shift.
Do you work with multi-site businesses? If you have more than one location, your broker needs to be able to consolidate your usage across sites to maximise buying power.
Is there a lock-in contract? You should be able to leave if the service is not delivering value.
A different model: automated, commission-free procurement
Termina operates differently from traditional commercial energy brokers.
Rather than earning commissions from retailers, Termina is paid a portion of the savings it finds for your business. If there are no savings, there is no fee. This aligns the incentive structure completely Termina only benefits when your costs go down.
The platform monitors the market every month across every meter, comparing rates from 37+ retailers including smaller, wholesale-informed providers that commission-based brokers typically do not access. When a better rate is available, Termina switches automatically — without you needing to do anything.
For small businesses, the group buying component is particularly valuable. Termina pools the purchasing power of thousands of business meters, giving small businesses access to rates typically reserved for large enterprises.
There are no lock-in contracts and no exit fees. You can leave at any time.
If your business spends more than $1,500 per month on electricity, there is likely a meaningful saving available. Get a free estimate here.
