How Energy Brokers Can Help Small Business Owners
In today’s unpredictable energy market, small business owners face rising costs and shifting tariffs — often without the time or tools to shop around. That’s where an energy broker can help.
Much like a commercial tenant advocate works to protect a business’s lease interests an energy broker works to find, negotiate, and manage energy contracts that suit your specific business operations. They can also help you with disputes related to your energy supply.
What Energy Brokers Do
Energy brokers are independent professionals who help businesses compare energy deals, negotiate contract terms, and manage energy use more efficiently.
Their support can include:
– Comparing multiple retailer offers to find the most competitive rate
– Negotiating better terms, such as fixed rates, flexible billing, or bundled services
– Advising on energy efficiency improvements to reduce ongoing costs
– Handling contract renewals or changes if your business relocates or scales
– Assisting with billing disputes or service issues
Why and When to Use an Energy Broker
Engaging an energy broker can save time, reduce costs, and increase transparency. Brokers can often access wholesale rates or unlisted deals, help you understand what you’re really paying for, and recommend plans that align with your business’s size, lease term, and growth plans. For larger energy consumers (think food outlets and other businesses using significant machinery, or air conditioning units) using a broker may be essential — you’ll typically be known in the industry as a ‘large business energy user’ or ‘large customer’ and won’t be able to access standard ‘on-market’ rates and must negotiate directly with retailers for a tailored contract. In these cases, a broker’s expertise and market reach can make a significant difference in securing fair and flexible terms.
How Will the Broker Get Paid
Typically, a small business that is a large customer will be quoted a rate that includes a trailing commission for the broker, which is paid by the energy supplier (much like mortgage brokers). Like in banking, the rates can vary significantly, so the more rates you’re presented with the more likely you are to find the lowest rate. You will likely also sign a Direct Metering Agreement with a broker which will include a value-added service (VAS) fee that the broker keeps. Like mortgage brokers, these service fees can vary significantly amongst brokers. You might be charged a direct fee for services such as dispute resolution, invoice validation, or tariff analysis.
So, when choosing a broker consider:
- What are the service fees under the Direct Metering Agreement?
- What is the length of the Direct Metering Agreement and does it match the agreement length with the retailer or are you locked into the broker once the rate expires?
- How many retailers has the broker presented quotes from (is it as little as 4 or as many as 8 or 9 retailers)?
Help With Billing Issues and Energy Disputes
Errors or issues with your energy retailer can be costly and time-consuming to resolve — especially for time-poor small business owners.
An experienced broker can:
– Review bills for overcharges or tariff errors and raise concerns with your retailer
– Assist with contract disputes, including unclear terms or excessive termination fees
– Advocate on your behalf if you’ve been switched without consent or misled during a sales call
– Escalate unresolved issues to the relevant authorities — including the ombudsman, if eligible
For larger energy users, brokers can also help resolve more complex issues such as:
– Accounts set up incorrectly, including cases where you may be charged for another tenant’s usage
– Delays in new connections, particularly in new developments or warehousing precincts
– Negotiating with service providers when the premises has never been connected before
– Helping you navigate embedded network disputes (e.g. in shopping centres or industrial parks)
When the Energy and Water Ombudsman Queensland Can Help
If you’re a small energy customer in Queensland, the Energy and Water Ombudsman Queensland (EWOQ) provides free, independent dispute resolution for billing errors, poor service, or unresolved complaints.
To be eligible, your business must:
– Use less than 160 megawatt hours of electricity per year
– Use less than 1 terajoule of gas per year
– Use less than 100 kilolitres of water per year (South East Queensland only)
– Be an on-market customer (directly billed by a licensed energy or water retailer)
EWOQ cannot assist:
– Businesses that exceed the usage thresholds — e.g. which might include some butchers, bakers, or other high-consumption businesses.
– Embedded network customers, such as those in shopping centres, strip malls, or apartment buildings in most circumstances.
If the embedded network is part of a Body Corporate arrangement, disputes may fall within the jurisdiction of the Body Corporate and Community Management Ombudsman. Read about body corporate and community management, or contact the Office of the Commissioner for Body Corporate and Community Management for more information.
If your business doesn’t qualify for support from EWOQ or the BCCM Commissioner, you may need to:
– Engage an energy broker to negotiate directly with your provider, or
– Seek legal advice who may also suggest ways you could escalate the matter to the Queensland Civil and Administrative Tribunal (QCAT) or court.
Free program to reduce your energy consumption
The ecoBiz program is a Queensland Government funded program for small-to-medium business to develop an action plan to help your business save money on utilities and increase efficiencies. Watch this short video to see how ecoBiz can save your business money, while also making your operation more sustainable. For more information and to register for the program, visit the website or contact ecoBiz on 1300 731 988.
How to find an Energy Broker
It’s important to choose carefully. Some brokers are paid commissions by specific retailers, which may influence what they recommend. Ask how many providers they compare and be wary of long-term lock-in contracts that don’t suit your business’s future.
Your local business chamber, accountant, or industry body may be able to recommend brokers who understand your sector. Always check that the broker is transparent, compares multiple providers, and offers support beyond the sale.
To discuss your situation, and get connected with people that can help, reach out to our Assistance team.
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