I’m Joe, I run Smarta Switch with Chloe out of Chelmer in Brisbane. I’m a commercial energy broker, so you’d expect me to say yes, a broker is always worth it. I’m not going to. The honest answer is: it depends on how a broker gets paid, whether they show you their working, and whether your bill is big enough to be worth anyone’s time.
Let me walk you through it properly, including the parts brokers don’t usually volunteer.
We’re paid by the energy retailer when you switch, never by you.
First, how does an energy broker actually get paid?
This is the question that decides everything, so start here. There are two models, and they are not the same.
1. Retailer-paid commission (how we work). The broker compares retailers for you, you pick one, and the winning retailer pays the broker a commission. You pay the broker nothing. The commission is usually built into the rate as a small margin, often a fraction of a cent per kWh. A good broker discloses it. A dodgy one hides it and quietly fattens it.
2. Fee-for-service. The broker charges you directly, a flat fee or a percentage of your “savings,” and takes no retailer commission. This is rarer in the SME space and more common at the big end of town.
Most business energy brokers in Australia, us included, work on retailer-paid commission. That’s why a broker can be genuinely free to you. The catch is the obvious one: if the broker’s commission goes up when they put you on a dearer plan, your interests and theirs can split. Which is exactly why disclosure matters more than anything else on this page.
The single most useful question you can ask any broker: “How much commission do you earn on this deal, and would you earn more by putting me somewhere else?” If they dodge it, you have your answer.
So is a broker worth it? The honest test
Forget the sales pitch. A broker is worth it for you if two things are true:
- Your bill is big enough. If your business spends more than roughly $3,000–$5,000 a year on electricity or gas, the difference between a sharp rate and a lazy one is real money, often hundreds to thousands a year. Below that, the savings are smaller and you may be fine doing it yourself.
- You don’t have time to do it well. Doing it properly means getting comparable quotes from 6–10 retailers, normalising them so you’re comparing like for like, checking demand charges and exit fees, and timing the switch around your contract end date. That’s a half-day of fiddly work, every year or two. If your time is worth more than that, a free broker is a clear win.
If both are true, a broker that costs you nothing is close to a no-brainer. If neither is true, be honest with yourself and go direct. I’d rather tell you that than waste your time.
What a good broker actually does for you
When it works, you’re not just buying a cheaper rate. You’re buying these:
- Whole-of-panel comparison. I shop your actual bill across the retailer panel, not one or two mates’ deals. (Here’s how I compare quotes line by line.)
- Apples-to-apples normalising. Retailers quote in deliberately different shapes, peak vs flat, demand in kVA vs kW, supply charges buried in the daily line. A broker lines them up so you can actually see who’s cheapest for your usage.
- Demand and tariff checks. The biggest savings often aren’t the rate at all, they’re spotting you’re on the wrong tariff or carrying a demand charge you could cut. (Demand charges explained here.)
- The switch admin. Paperwork, meter data, talking to the old and new retailer, timing it so you don’t pay an exit fee. You sign one Letter of Authority and I do the chasing. (What an LoA does and doesn’t authorise.)
- The renewal catch. The real value isn’t the first switch, it’s stopping you rolling onto a lazy out-of-contract rate in two years. A good broker diaries your expiry and re-quotes before it bites. (Why your renewal offer is always above market.)
Commercial energy broker vs retailer: what is the difference?
A retailer sells its own energy plans. A commercial energy broker can request and compare offers from the retailers on its active panel, then normalise the quotes against your actual usage. That difference matters because a retailer can explain its own offer, while a broker can compare several available offers. A broker’s panel is not the whole market.
| Option | What you get | Main limitation |
|---|---|---|
| Go directly to a retailer | A quote for that retailer’s available plans | You need to collect and compare every other quote yourself |
| Use a commercial energy broker | A bill-based comparison across the broker’s active panel, plus switch and renewal support | The panel is not the whole market, and retailer-paid commission must be disclosed |
| Use Energy Made Easy | A free government comparison service for eligible small customers | Larger commercial and industrial contracts generally need a business-specific procurement process |
The right question is not simply broker or retailer. Ask which retailers are being compared, whether your current deal is included, how commission works, and whether every quote uses the same consumption and contract assumptions.
When you’re genuinely better off going direct
I said I’d be straight, so here it is. Skip the broker and do it yourself when:
- Your bill is small. A tiny site spending under a couple of thousand a year, the savings rarely justify anyone’s involvement, and you can compare a couple of retailers yourself in an hour.
- You’re already on a sharp, recent fixed deal. If you signed a competitive contract in the last 12 months, there may be nothing to win right now. A decent broker will tell you that and walk away. (I do.)
- You enjoy it and have the time. Some owners genuinely like running the numbers. If that’s you, the government’s free Energy Made Easy tools and a few direct retailer quotes will get you most of the way.
A broker who can’t tell you when you don’t need them isn’t a broker, they’re a salesperson.
How to spot a broker worth using (and one to avoid)
Worth using:
- Discloses commission in writing, plainly, without you having to drag it out.
- Shows you the comparison, the actual numbers from multiple retailers, not just “trust me, this is the best.”
- Walks away when your current deal is already good.
- Names the panel, you can see which retailers they actually compare.
- Is a real, contactable person, with a phone number that a human answers.
Avoid:
- “We’ve negotiated an exclusive rate just for you” with no comparison to back it up.
- Pressure to sign today before an offer “expires.”
- Vague on how they get paid. If they won’t say, assume it’s more than you’d like.
- A single-retailer “broker”, that’s a sales channel wearing a broker’s coat.
The Smarta version, in one paragraph
You send your last bill. I compare it across 8+ retailers and send back a real, like-for-like comparison, usually within 24 hours. If switching saves you money, I handle the lot and you sign one form. If your current deal is already at market, I tell you and we leave it. The winning retailer pays my commission, which I’ll show you, and you pay me nothing. That’s the whole model. No 1300 number, no call centre, just me and Chloe and a straight answer.
What to do this week
- Find your last full bill (the itemised one, not a payment reminder) and your contract end date.
- Ask yourself the two-part test above, is your spend big enough, and is your time worth the half-day? If yes to both, a free broker is worth it.
- Get one real comparison. Upload your bill on this page or email hello@smartaswitch.com.au. I’ll show you exactly what your bill should cost, name the commission, and tell you straight whether it’s worth switching. No cost, no commitment, because we’re paid by the energy retailer when you switch, never by you.
The worst outcome isn’t using a broker or going direct. It’s doing nothing for three years while a rolled-over rate quietly bleeds the business. Whichever way you go, just don’t do that.
Joe Lawrence, Co-founder, Smarta Switch Australia 0435 642 592 · joe@smartaswitch.com.au