For large commercial and industrial (C&I) energy users, electricity procurement is no longer a simple “set and forget” exercise. Volatile wholesale markets, changing network charges and evolving contract structures mean that how you engage energy brokers and plan your procurement strategy can materially influence both cost outcomes and risk exposure.
One question that often arises is whether engaging multiple energy brokers or consultants leads to better results. While this approach may appear to introduce competition, there are several factors that are worth carefully considering.
Key Considerations and Risks of Using Multiple Energy Brokers
In practice, involving multiple brokers in a large-market procurement process can introduce complexity that may outweigh the perceived benefits.
- Retailer engagement and pricing outcomes
Large-market retailers operate within a relatively small and concentrated pool. When multiple brokers approach the same retailers for the same portfolio, it can create confusion around authority and process. In some cases, this may lead to more conservative pricing, reduced engagement, or withdrawal from the opportunity altogether. - Market fatigue and timing challenges
Repeated or overlapping approaches to market can reduce the effectiveness of a procurement process. Retailers may be less inclined to provide their most competitive pricing if they perceive uncertainty or duplication in how an opportunity is being managed. - Inconsistent assumptions and comparability
Different brokers may apply varying assumptions around load forecasts, contract structures, start dates or risk positions. This can make it difficult to assess offers on a true like-for-like basis, increasing the risk that decisions are made on incomplete or misaligned information. - Governance and accountability
With multiple advisors involved, accountability can become less clear. This may create challenges in coordinating tender processes, managing timelines, and ensuring that outcomes align with the broader energy strategy. - Contracting risk
In more complex scenarios, overlapping authorities or unclear communication pathways can introduce the risk of duplicated tenders or unintended contracting outcomes, particularly around renewal periods.
Market Reality for Large Energy Users
For large-market electricity accounts, it is important to recognise that the pool of retailers and wholesale counterparties is relatively concentrated, and most brokers are engaging with the same market participants.
Where differentiation can occur is in the strategy and approach taken to procurement. An experienced broker or consultant may offer alternative structures beyond traditional fixed-price contracting, such as progressive purchasing. These approaches can provide greater control over timing, risk exposure and market participation.
For larger energy users seeking a more comprehensive view of available options, understanding these different procurement strategies can be as important as the pricing itself. Ensuring that these approaches are clearly presented and well understood can support more informed and aligned decision-making.
Where Multiple Energy Brokers May Add Value
That said, there can be value in exploring different perspectives earlier in the decision-making process.
Engaging with more than one advisor when assessing strategy, capability or approach can help challenge internal assumptions, provide alternative views on risk management, or support a more informed selection of a long-term advisory partner.
However, once a procurement process is underway, a more coordinated approach is often considered beneficial.
A Structured Approach to Energy Procurement
For many large energy users, a common approach is to appoint a single broker or advisor to manage a defined and transparent market process.
This can help:
- Maintain clear accountability
- Ensure consistent data and assumptions
- Present a unified and credible position to the market
- Align procurement timing with wholesale market conditions
Ultimately, this structure can support more consistent and reliable commercial outcomes, while reducing operational and contractual risk.
Key Takeaway
There is no single model that suits every business, and procurement strategies should reflect individual risk appetite, internal governance and market objectives.
However, when considering the use of multiple brokers, it is important to weigh not just the potential for increased competition, but also the practical implications for market engagement, pricing outcomes and process integrity.
In many cases, taking the time to select the right advisory partner upfront, and then running a structured, coordinated process, may provide a more effective pathway to achieving strong, risk-adjusted outcomes.
Our consultants provide independent assessments and connect you with trusted suppliers to secure compliant, cost-effective energy projects and savings. For the latest information or to speak to an expert at Sustainable Energy Solutions for a tailored conversation on your business’s needs and goals, please get in touch or call us on (02) 8044 0335.
