News
min read

What is the difference between an energy broker and energy suppliers in Australia?

Michael Koopman

An energy supplier (retailer) sells electricity or gas and sends your bill. An energy broker negotiates with suppliers on your behalf but is not the retailer of record unless disclosed otherwise. Termina acts as an authorised representative for procurement while comparing the whole market through a commission-free savings-split model.

Confusion is common because some brokers earn retailer commissions, which can make them feel like an extension of the supplier. Review procurement overview, pricing, or get a free savings estimate. The Australian Energy Regulator oversees retail markets in NECF states where most businesses choose among authorised retailers.

Diagram explaining energy broker vs energy supplier roles in Australia

What does an energy supplier do in Australia?

Energy suppliers, often called retailers, bill you for electricity or gas, manage your customer account, and source energy from the wholesale market or their own generation portfolio. They do not own the poles and wires. Distribution networks remain separate regulated businesses.

Major business retailers include AGL, Origin, EnergyAustralia, Alinta, and dozens of smaller challengers. Your supplier sets retail charges within contract terms, while network and environmental pass-through items may appear on the same invoice.

What does an energy broker do instead?

A broker compares offers from multiple suppliers, runs tenders, explains tariff structures, and manages switching paperwork under a Letter of Authority. Some brokers also provide ongoing bill review and renewal management after the first contract.

Termina states it compares every retailer, refuses retailer commissions, and reviews the market monthly. Traditional brokers such as Choice Energy and Energy Action focus on consultant-led procurement and auctions respectively.

Should you go direct to a supplier or use a broker?

Go direct when you have one simple site, time to compare plans, and confidence reading contract terms. Use a broker or platform when you have multiple sites, complex tariffs, embedded networks, or need monthly review after the first deal.

Energy Made Easy is the government comparison tool for self-serve buyers in NECF states. It is not a broker, but it helps you compare supplier offers without a middle party.

Energy broker vs energy supplier responsibilities compared for Australian businesses
Energy broker vs energy supplier in Australia
Role Energy supplier (retailer) Energy broker / platform
Sells energy Yes No
Sends the bill Yes Sometimes consolidates views
Compares market Only their own plans Multiple retailers
Paid by Customer bills Fees, commissions, or savings share
Best for Simple direct relationships Multi-site and complex procurement

How can broker incentives misalign with your interests?

If a broker earns commission from certain retailers, they may favour offers that pay more rather than the lowest total bill. Savings-split models try to align fees with documented savings instead. Always ask how payment works before you sign.

Termina states on pricing that it is not paid by retailers. Zembl's broker checklist warns against unclear remuneration and guaranteed savings claims without bill data.

Where does Termina fit: broker, supplier, or platform?

Termina is not a retailer. It is a procurement and data platform that acts on your behalf after consent, while consolidating bills, validating invoices, and supporting reporting on the energy data platform. You still contract with a retailer for supply.

That combination matters for multi-site groups that need both a competitive rate and persistent portfolio data across retail, hospitality, and manufacturing operations.

How do you appoint a broker without giving away too much authority?

Read the Letter of Authority carefully. Limit scope to data access and tendering if you only want quotes first. Confirm who can accept contracts on your behalf and how to revoke authority later.

Four steps to decide between an energy broker and going direct to suppliers
  1. Identify your current supplier and contract end date
  2. Decide whether you need quotes only or full switching authority
  3. Compare broker fee models in writing
  4. Keep one authorised representative per NMI

Partners can introduce clients who need help choosing between direct retailer relationships and managed procurement.

Frequently asked questions

Is Termina an energy retailer?

No. Termina states it is not paid by retailers and helps businesses procure from retailers across the market.

Can a supplier also act like a broker?

Some energy businesses offer both retail products and advisory services. Ask which legal entity bills you and how recommendations are remunerated.

Do I still pay the network if I use a broker?

Yes. Network charges are separate from retail charges and appear on most commercial bills regardless of broker use.

Will switching suppliers interrupt power?

No. The physical network supply continues. Switching is an administrative change of retailer account.

Where should I start?

Upload a bill for a Termina savings estimate or compare supplier plans on Energy Made Easy if you have a single simple site.

join Today

Group buying with 9000+ locations.