Commercial + industrial customer procurement checklist

    Energy brokers and consultants can play a valuable role in helping your business navigate energy procurement. They can efficiently review and compare offers from energy retailers, metering providers, and solar/battery solutions. 

    This procurement checklist has been created by the National Customer Code for Energy Brokers, Consultants and Retailers, supported by The Energy Charter, to help you make informed decisions about: 

    • Costs, commissions, and fee structures 
    • Contract terms and conditions 
    • Energy solutions including solar and batteries 
    • Power Purchase Agreements 
    • Metering solutions 

    Whether you work directly with an energy retailer or engage an energy broker or consultant, this guide will help ensure they act as a partner working in your best interests. 

    Signing a Letter of Authority or Consent Form

    This is the first step in your energy procurement journey. These forms enable an energy retailer to provide your data and information to a third-party energy broker or consultant. 

    What these forms typically authorise: 

    • Access to your interval data and historical energy consumption (usually past 12 months) 
    • Obtaining copies of your energy bills and contracts 
    • Confirming your current Metering Provider and metering contract end dates 
    • Confirming your network tariffs 
    • Obtaining electricity and gas offers 

    Important considerations: 

    • These forms are generally valid for 12 months but can be longer 
    • Some forms may authorise the broker to act on your behalf, including choosing providers and executing contracts 
    • Be clear about the limits of what you’re authorising 
    • Keep a list of all your site addresses and National Meter Identifiers (NMI) 

    Questions to ask:

    • Will you use my interval data from my current retailer to get me the most accurate pricing for my site(s)? 
    • Will my bills include charges for Unaccounted for Energy under the Australia Energy Market Operator’s Global Settlements rule? 
    • Does your Letter of Authority include all the charges such as value-added services that I may choose to use? 
    • Does your Letter of Authority only authorise you to obtain information to seek offers on my behalf or does it give you authority to make purchasing decisions?

    Costs, Commissions and Fee Structures

    Energy brokers and consultants may have different business models. Understanding their fee structure is essential before engaging their services. 

    Key points to understand: 

    • Fees may be fee-for-service based or commission based 
    • Fees/commissions can be paid upfront, directly over time, or through your energy bill 
    • You pay for the broker’s services, not the energy retailer 
    • Your agreement with your broker should clearly state all costs and fee structures 
    • The broker agreement is separate from your energy and metering contracts 

    Fee-for-service approach: 

    • You pay a set fee or hourly rate as agreed in advance 
    • May include additional ongoing value-added services and support 

    Commission approach: 

    • You pay a commission negotiated with the broker via your contracted energy retailer 
    • Often structured as a “trailing commission” (no upfront payment) 
    • Commission is typically a percentage or cents/kWh on your retail energy charges 
    • May appear as a separate line item or built into usage charges 
    • Network pass-through costs usually don’t attract commission 

    Questions to ask: 

    • What is the total fee that I am paying for your services? 
    • What are your ongoing fees for value-added services? 
    • Are there any other costs, commissions, or fees that I am likely to incur? 
    • What is the exact percentage or cents/kWh commission fee? 
    • How is your commission calculated and what does it apply to? 
    • Will the commission be shown separately on my bills or built into the tariff? 
    • Are the fees/commission costs clearly disclosed when you go to market on my behalf? 
    • Are there any fees for terminating contracts before their end date?
       

    Your energy contract

    Contract terms and pricing can vary significantly based on market conditions and your usage patterns. 

    Before signing: 

    • Consider your circumstances and needs alongside price 
    • Understand all terms, conditions, contract duration, and fees 
    • Be clear about how changes in your business might affect the contract 

    Questions to ask: 

    Novation – what happens if: 

    • I am selling or closing my business? 
    • The contract signer/responsible person leaves the business? 
    • The business entity/name/ABN changes? 

    Load fluctuations – what happens if: 

    • My usage reduces (due to solar installation or operational changes)? 
    • My usage increases (extended hours or increased productivity)? 
    • There is variation from the contract load? 
    • My sites change – is there a limit on Roll-In-Roll-Out of sites? 

    Other important questions: 

    • Are there restrictions or fees for early termination? 
    • Is there any brokerage payable on environmental products? 
    • What are the payment terms? 
    • Does the retailer have a dedicated service team? 
    • Is there an online portal accessible to me or my broker? 
    • Can this retailer help with Power Factor Correction, Demand Side Management, or Green Power solutions?

       

    Value-Added Services and Metering

    Value-added services fees: 

    • These include additional services beyond energy procurement 
    • Should be clearly negotiated and agreed upon 
    • May be linked to Direct Metering Agreements or provided separately 

    Metering providers: 

    • Responsible for installing and maintaining electricity meters at your site 
    • In most states in the National Energy Market, you can choose your own provider 
    • Benefits include price control, access to historical data, and continuity if you change retailers 
    • Initial contract terms are usually 3-5 years 
    • Your broker can help arrange this, potentially for an additional fee 

    Tying agreements together: 

    • Consider the implications if you want to change providers or your circumstances change 
    • Contracts and agreements may have different durations 
    • Request written information about impacts if:  
    • You want to choose a new energy broker or consultant 
    • You want to change your energy retailer or metering provider 
    • Your circumstances are likely to change during agreements 

    Power Purchase Agreements (PPAs)

    Traditionally used by very large energy users, PPAs are becoming increasingly accessible for large businesses seeking renewable energy solutions. 

    What are PPAs? 

    • Agreements to purchase power from renewable sources (wind, solar) 
    • Can be arranged through an energy retailer or directly with a renewable developer 
    • Allow businesses to purchase Large Scale Generation Certificates 

    Key considerations: 

    Clarify your rationale: 

    • Reduce emissions and manage long-term carbon cost risk 
    • Meet corporate net zero and decarbonisation goals 
    • Avoid capital costs of onsite solar/battery solutions 

    Options: 

    • Go through your energy retailer (typically simpler) 
    • Negotiate directly with a renewable developer (potentially more complex) 
    • Work with an experienced broker to help navigate the process 

    Questions to ask: 

    • How might a PPA help my business? Will the benefits outweigh my time and resource costs? 
    • How can I consider a PPA if I’m a tenant or in an embedded network? 
    • Does purchasing through my energy retailer make more sense than directly with a developer? 
    • How can a PPA help position my business as a sustainability leader without “greenwashing”? 
    • Can I get help building a business case? 

    Choosing Your Energy Broker or Consultant

    When selecting a broker or consultant, look beyond the offers they can obtain and assess their experience and understanding of the energy market. 

    Questions to ask: 

    • How long have you worked in the energy sector and what experience do you have with businesses like mine? 
    • Which energy retailers can provide offers through you? 
    • Can you help with future needs such as PPAs, solar, or battery storage solutions? 
    • Which of your customers can I contact for references? 
    • Do you have a dispute resolution process, and can I have a copy? 
    • Are you a Signatory to the National Customer Code for Energy Brokers, Consultants and Retailers? 

    About the National Customer Code 

    The National Customer Code for Energy Brokers, Consultants and Retailers aims to give large energy customers confidence that Signatories are working in their best interests and delivering value. 

    The Code has four key commitments: 

    1. Customer centricity – putting customers at the centre and making decisions aligned with positive customer outcomes 
    1. Transparency – providing clear, accurate information to help informed choices 
    1. Fit for purpose – offering responsible products and services driven by customer needs 
    1. Accountability – being responsive and taking prompt action on complaints 

    How to verify if a provider is a Signatory: 

    • Look for the Customer Code logo on their website 
    • Check the list of official Signatories on the National Customer Code website 
    • Signatories have agreed to follow these commitments and act in your best interests 

    Making a complaint: 

    If you’re unsatisfied with a Signatory, you can submit a complaint to the Administrator after attempting to resolve the matter directly with them. 

    National Customer Code for Energy Brokers, Consultants and Retailers