Do Small Businesses Get Left Behind in the Energy Market?
Large corporations usually have internal procurement teams or energy consultants negotiating commercial electricity and gas contracts on their behalf. They run tenders, compare retailers and lock in competitive wholesale-style pricing.
But small and medium businesses rarely have the time, expertise, or buying power to do this.
So what happens?
Most SMEs end up:
• staying with their existing retailer
• rolling onto default or standing offer rates
• accepting renewal contracts without comparison
• overpaying for electricity and gas
That’s why many businesses search for a small business energy broker or electricity broker for business, someone to compare prices and negotiate on their behalf.
However, the traditional broker model has a major flaw.
How Traditional Small Business Energy Brokers Work
A commercial energy broker compares business electricity and gas contracts across retailers and recommends a plan.
On the surface, this sounds helpful.
The problem is how they get paid.
Most energy brokers in Australia are paid commission by energy retailers.
That commission structure creates two conflicts:
1. Limited Retailer Panel
Many brokers only work with a handful of large retailers.
They often do not compare smaller retailers or wholesale-style contracts because:
• commissions are lower
• systems are harder to manage
• pricing changes faster
This means the broker is not comparing the full market, only the retailers they have agreements with.
2. Incentive Misalignment
Retailers pay different commission rates to brokers.
So the “recommended” plan is frequently the contract that pays the highest commission, not necessarily the lowest electricity price for your business.
That’s why you will rarely see traditional brokers regularly switching customers between retailers.
The Lock-In Problem
Another issue with the standard commercial energy broker model is the contract cycle.
Many broker-arranged contracts include informal or formal agreements that:
• discourage switching retailers
• limit re-tendering for 12–24 months
• lock your business into fixed rates
But the energy market does not stay stable for 12 months.
Wholesale electricity prices in Australia can change dramatically month-to-month due to:
• weather events
• generation outages
• fuel prices
• network tariffs
• government policy changes
So a “competitive” rate today may be uncompetitive in just a few months.
A Different Approach: Automated Energy Procurement
Termina is not a traditional business energy broker.
Instead of finding a contract once and leaving you on it, Termina operates a continuous energy procurement and optimisation platform.(link)
How Termina Works
Termina automatically reviews your electricity and gas prices every month across every meter.
The platform:
• compares commercial electricity rates across retailers
• monitors wholesale price movements
• uses group buying power from thousands of business meters
• switches or renegotiates when savings exist
This means your business is continuously moved to the lowest available pricing, not just at renewal time.
No Retailer Commissions
Unlike most commercial electricity brokers, Termina refuses retailer commissions.
Instead, Termina is paid a portion of the savings it finds.
This completely changes incentives.
Traditional broker motivation:
place you on a contract
Termina motivation:
reduce your energy costs as much as possible
If savings stop, Termina doesn’t get paid.
So the platform is aligned with your best interests.
Monthly Market Optimisation
Energy prices don’t move yearly.
They move constantly.
Termina goes to market every month.
The platform combines:
• bulk purchasing agreements
• live market pricing
• ongoing contract optimisation
This provides two advantages:
When prices fall → you benefit immediately
When prices rise → existing agreements protect you
The result is stable, long-term cost reduction without needing to manage energy procurement yourself.
Multi-Site Energy Management
For businesses operating multiple locations, retail groups, franchises, warehouses, hospitality venues, medical clinics or offices, energy management becomes complex.
A multi-site energy broker traditionally consolidates contracts, but still relies on periodic tendering.
Termina instead manages every meter continuously, allowing you to:
• centralise electricity procurement
• standardise energy contracts
• reduce administrative workload
• track savings across locations
All without lock-in contracts, entry fees or exit fees.
Why Businesses Switch
Businesses usually come to Termina after discovering:
• their “brokered” rate wasn’t competitive
• renewal pricing increased significantly
• they were rolled onto default tariffs
• they had no visibility over energy procurement
Energy is not a fixed overhead, it is a controllable cost.
With active optimisation, many businesses reduce electricity and gas spend without changing usage at all.
