Australia’s energy market is one of the most dynamic and competitive in the world. With dozens of electricity and gas retailers, government regulations, renewable energy transitions, and a complex wholesale trading system, businesses and households alike face a challenging task when it comes to choosing the right energy provider. This is where energy brokers come into the picture.
An energy broker helps consumers and businesses navigate tariffs, compare energy suppliers, and negotiate better deals. In this comprehensive guide, we will explore the role of energy brokers in Australia, the top energy companies, how trading works, and most importantly, how to find the cheapest and most reliable energy supplier for your needs.
An energy broker is a professional or company that acts as an intermediary between consumers and energy suppliers. Their goal is to help clients secure the best electricity or gas contracts, whether for residential or business use.
Compares tariffs across different retailers.
Negotiates special deals for businesses.
Helps large energy users manage wholesale market exposure.
Provides independent advice on electricity and gas contracts.
Assists with switching suppliers to reduce costs.
Broker: Connects buyers with suppliers and earns commissions.
Trader: Operates in wholesale energy markets, buying and selling electricity or gas.
Advisor: Offers consultancy on energy strategy, efficiency, and sustainability.
Businesses often struggle with complex energy tariffs, varying contract structures, and unpredictable wholesale market prices. Energy brokers simplify the process by offering:
Access to competitive tariffs that may not be advertised publicly.
Time savings, as brokers handle negotiations and paperwork.
Expertise, since they understand regulatory changes and wholesale trends.
Cost reductions, especially for companies with high energy consumption.
Australia’s energy retail market is dominated by a few large players, alongside smaller independent providers.
AGL Energy
One of the oldest and largest energy companies in Australia.
Provides electricity, gas, and renewable energy solutions.
Origin Energy
Known for its diversified portfolio including natural gas, renewables, and solar solutions.
A strong player in both residential and business markets.
EnergyAustralia
A major retailer supplying millions of households.
Focused on innovative retail products and clean energy transition.
Alinta Energy – Popular in WA and Eastern states.
Momentum Energy – 100% Australian owned.
Red Energy – Backed by Snowy Hydro, offering renewable-focused deals.
Amber Electric – Provides wholesale-linked pricing.
Powershop – Known for transparent billing.
Sumo Energy – Competitive bundle deals with internet.
Determining the cheapest supplier depends on several factors:
Your state (VIC, NSW, QLD, SA, TAS, WA, NT).
Your consumption pattern (business vs residential).
Available discounts and contract structures.
Victoria often has cheaper rates due to a highly competitive retail market.
New South Wales customers can benefit from seasonal discount packages.
Queensland pricing is partially regulated, meaning fewer differences.
South Australia often has higher prices due to reliance on imports.
Wholesale energy costs.
Network and distribution charges.
Government levies and green schemes.
Retailer profit margins.
Australia’s electricity system is governed by the National Electricity Market (NEM), which covers Queensland, NSW, ACT, Victoria, South Australia, and Tasmania.
Energy is traded in real-time.
Prices fluctuate every five minutes.
Generators bid to supply electricity.
Traders: Operate in wholesale markets, often at utility scale.
Brokers: Work with end-users to secure cheaper retail contracts.
Some large companies engage directly in wholesale market contracts, but most rely on brokers to shield them from price volatility.
With Australia transitioning toward net zero emissions, renewable energy plays a central role. Brokers now also compare green tariffs, carbon offset products, and renewable power purchase agreements (PPAs).
Solar energy.
Wind power.
Hydropower (notably Snowy Hydro).
Yes, energy brokers are licensed professionals or agencies that help clients choose energy plans.
Historically, Victoria and NSW are cheaper than South Australia or Tasmania.
Absolutely. The Australian Energy Regulator (AER) recommends comparing retailers annually.
Tariffs change regularly, but competition among AGL, Origin, and smaller players like Red Energy often drives lower prices.
Yes, especially for businesses with large usage. Savings can range from 5% to 20% annually, depending on negotiation power.
Engage an energy broker for negotiation.
Consider renewable options that may be subsidised.
Review contracts annually, as discounts can expire.
Use demand management strategies, such as running equipment off-peak.
Australia’s energy market is complex but full of opportunities for savings. Whether you are a household looking to reduce bills or a business seeking to optimise energy contracts, working with an energy broker can be the key to navigating this landscape. By comparing retailers, understanding how trading works, and factoring in renewable energy, you can make informed decisions and significantly cut your costs.