Anyone who’s ever stared at their energy bill thinking, “Wait—am I overpaying?” has probably wondered who really controls the prices. Is it the retailer? A broker? And what exactly is the difference between the two?
Here’s the short answer:
An energy provider supplies you with electricity or gas. A broker helps you find the best deal from multiple providers.
Sounds simple, but the way these roles play out in real-world energy contracts—especially for businesses—is worth understanding.
What does an energy provider actually do?
An energy provider (also called a retailer) is the company that sells electricity or gas to you. They’re the ones who:
- Send your energy bills
- Handle customer service issues
- Offer plans, discounts, or usage monitoring tools
- Buy electricity from the wholesale market and resell it to homes and businesses
In Australia, big names like Origin, AGL, and EnergyAustralia dominate this space, but there are also smaller players like Red Energy, Powershop, and Tango Energy.
They’re the ones legally responsible for ensuring your home or business receives power. But here’s the thing—each one sets different tariffs, and those tariffs change often.
What does an energy broker do?
Now enter the energy broker—they don’t sell you electricity directly. Instead, they act as the middle-person, comparing offers from different providers and helping you choose the best one based on your needs.
A good broker will:
- Analyse your historical usage (kWh, peak times, etc.)
- Compare offers across dozens of retailers, including wholesale-only providers
- Negotiate rates on your behalf
- Manage the switching process (so you don’t deal with hold music ever again)
For businesses, brokers can also advise on:
- Demand charges and how to avoid peak pricing
- Green energy options or carbon offset programs
- Contract timing (e.g., locking in rates before summer price hikes)
In short, they’re your energy advocate—often at no cost to you.
How is the relationship different?
Here’s an analogy that usually clicks:
- The provider is like the airline—you’re paying them to get you from A to B.
- The broker is like the travel agent—they find you the best airline, flight time, and price based on your plans.
Or, in Aussie terms:
The provider hands you the beer.
The broker helps you pick the best one for your taste and your budget.
Do brokers offer better prices than providers?
In many cases—yes. Why?
Because energy brokers deal in volume. Just like wholesalers get discounts for buying bulk, brokers can access commercial or unlisted rates by placing hundreds (or thousands) of customers with a retailer.
Many business owners are surprised to learn that:
- Direct-to-retail pricing is not always the cheapest
- Not all providers advertise their best rates online
- Brokers often bundle customers for group discounts—like an energy co-op, but smarter
That’s especially true for businesses, schools, or anyone with high usage or multiple sites.
When should you use a broker instead of going direct?
If any of the following sound like you, a broker could be the smarter choice:
- You run a small or medium business and want to control overheads
- You’ve got solar panels, batteries, or EV chargers and want the most compatible tariff
- You manage multiple properties or have complex metering
- You just don’t have time to compare every option yourself
One Melbourne café owner saved $1,800 annually by switching to a time-of-use plan recommended by their broker—one they didn’t even know existed.
When might you stick with a provider directly?
There are still scenarios where going direct makes sense:
- You’re eligible for a government hardship or concession plan (brokers can’t always access these)
- You’re deeply loyal to a specific provider and don’t want to switch
- You use under 3,000 kWh per year and savings margins are slim
- You enjoy plan-hopping and already compare retailers quarterly
Even then, some brokers offer free audits or annual check-ins just to make sure you’re not missing anything.
FAQ – Quick Answers
Q: Do energy brokers charge a fee?
Most don’t. They’re paid by the provider when they place a customer. Still, it’s worth asking how they’re compensated and whether they work with the full market or a limited panel.
Q: Will I lose power if I switch via a broker?
No. There’s zero disruption. You don’t even need to be home. The infrastructure stays the same—it’s just your billing that changes.
Q: Are brokers only for businesses?
Nope. While they’re common in the commercial space, more residential households are now using brokers to simplify the process, especially during energy price hikes.
The Bottom Line
So—what’s the real difference between a broker and a provider?
One sells you the power.
The other helps you buy smarter.
Whether you’re running a household or a multi-site business, understanding this distinction is like learning the difference between retail and wholesale. It changes how you shop—and what you save.
To see how a professional energy broker might make a difference in your energy costs, it’s worth having your current bill reviewed. No pressure, just clarity.