Many Australian SMEs consider using an energy broker to help with their power bills. The idea sounds good: someone else handles the complex energy market for you. They promise to find you the best deals and save you time. On the surface, it seems like a win-win.

However, the reality can be different. While some brokers offer valuable services, many operate in ways that can cost your business more in the long run. Their business model can sometimes create conflicts of interest. This means the "best deal" might not be the best deal for you.

Let's look at five common reasons why traditional energy brokers might cost you more than you think. Then we’ll show you a more transparent way to manage your energy with Termina.

1. Hidden Commissions Drive Up Your Price

This is often the biggest issue. Many energy brokers don't charge you a direct fee. Instead, they get paid a commission from the energy retailer. This commission is often built into your energy rate. You don't see it as a separate line item.

• The Problem: The broker might push you towards the retailer who pays them the highest commission, not the one offering the lowest rate for your business. This means the "deal" they find might be higher than what you could get otherwise. It directly inflates your energy procurement costs.
• What Termina Does: Termina operates on a service-based model. We do not take commissions from energy retailers. This means our only goal is to find you the absolute best rates available. Our recommendations are always in your best financial interest.

2. Lack of Transparency on Fees

Even when fees are mentioned, they might not be fully clear. Some brokers might have upfront fees, ongoing service fees, or charges for "value-added" services that aren't well explained or outlined in your contract.

These are often called VAS fees, or inflated Direct Metering Agreements (DMAs), which means they get paid from metering providers. 

• The Problem: You might sign a contract thinking you're getting a free service, only to find later that a hidden percentage or cents-per-kilowatt-hour has been added to your rate for the entire contract term. This makes true Utility Bill Management difficult, as you don't know the real price.
• What Termina Does: Termina ensures total transparency. All fees are clearly stated upfront. You will know exactly what you are paying for our services, with no surprises hidden in your energy rates. Termina’s only goal is to find the best price.

3. Limited Access to the Entire Market

Most energy brokers work with small panel of 4-8 retailers. There are 35+ retailers in the market.. Some might have preferred partners or a limited panel of providers they engage with.

• The Problem: If a broker only gets quotes from a few retailers, you're not seeing the full market. The "best deal" they present might just be the best among a small selection, not the best overall. This limits your true energy procurement options, especially if you have complex multisite energy needs.
• What Termina Does: Termina constantly scans offers from every energy retailer in the market. Our platform ensures you access the most competitive deals available from all relevant providers, giving you a comprehensive view.

4. Over-Complicated Contracts and Information Overload

Some brokers aim to make the process seem so complex that you feel you can't manage without them. They might overwhelm you with jargon or present offers that are hard to compare.

• The Problem: When contracts are hard to understand, you might miss key terms, hidden fees, or unfavorable clauses. This complexity also makes effective Energy Data Management challenging if you can't easily break down your own charges. You might agree to terms that don't truly benefit your specific usage, for example, missing opportunities related to your asset register or Facilities Management practices.
• What Termina Does: Termina simplifies the complex. We present clear, easy-to-understand comparisons of offers. Our energy bill reading software helps you quickly grasp your current usage and costs, making new offers easy to evaluate. We explain everything in plain language.

5. Lack of Post-Procurement Support

A traditional broker's job often ends once you sign a new contract. They move on to the next client.

• The Problem: What happens if there's a billing error? Or if market conditions change dramatically? Without ongoing support, you're left to deal with the retailer directly. You might miss opportunities to optimise your energy management or find new savings later. This means your initial "savings" could be eroded over time.
• What Termina Does: Termina provides continuous utility management support. We monitor your bills, check for errors, and alert you to new market opportunities. We are your ongoing partner in energy management, not just a one-time service. We help with Utility Bill Management long after the contract is signed.

Choose Transparency and Control with Termina

While the idea of an energy broker can be appealing, it's vital to choose a partner who truly works for your best interest. Traditional brokerage models often have inherent conflicts that can cost your Australian SME more than you realise.

Termina offers a different approach. We believe in transparency, technology, and putting your savings first. By using Termina, you get:

• Clear, flat fees.
• Access to the whole market.
• Simplified insights from your energy data.
• Ongoing support and expert negotiation.

Don't let hidden costs eat into your profits. Take control of your energy procurement and energy management. Explore how Termina can provide your business with real, sustainable savings, without the hidden fees.