Energy Broker Services

We don’t accept payments or commissions from retailers for placing business, and don’t have any quotas to meet, leaving us free of any conflicts of interest.

The importance of researching the whole market cannot be understated.

There are many different financial instruments that retailers use to hedge load, some, like the forward price curves on the ASX are transparent, but there are many other bilateral deals that are not transparent.

So the ability for retailers to offer the most competitive prices can change as the various hedging deals change.

Our tenders are designed to maximise retailer interest, drive competition, and minimise retailer margins.

• We provide all the appropriate data to minimise risk margins for risks that may or may not be real.
• We make it easy for retailers to respond – thus increasing competition.
• Once offers are in, we run a Blind Dutch Auction where retailers don’t know what their competition is offering and thus we get to their floor price.

If you have sustainability and environmental goals we are able to assist you achieve them with cost effective solutions.

The National Electricity Market (NEM) covers NSW and the ACT, QLD, SA, Vic and Tas. It is regarded as one of the most volatile commodity markets in the world. For this reason, energy retailers use various financial instruments to manage their risks.

Our tenders include all of your historic load shape data. For multi-sited clients we also model their future load, which is vital to remove retailer margins for risks that may or may not be real.

The reason we use a blind reverse auction is because we can get a retailer’s walk away, or floor price. This process takes more time, but it forces retailers’ to be more competitive. When retailers’ don’t know what others are offering, and there is no prize for coming second, our client’s finish with far better outcomes.

Brokers who use electronic reverse auctions or other electronic processes save time, but cost their clients’ money because these processes allow the winning retailer to know what their competition is offering, giving them no incentive to offer their floor price.

We empower you with an independent analysis of all offers, and supply current market information. You are then in a stronger position to make an informed decision. This makes it easier for you to choose your Retailer of Choice and the length of contract.

Many of our competitors are paid commissions by the winning retailer, these commissions are added to the raw energy rates and add at least $3,000/GWh per annum to the cost.

In contrast we are totally independent and free of any conflicts of interest:

• we don’t have to meet any retailer’s quotas for placing business, and
• we tender to all licensed retailers without bias.

Aside from adding additional cost, commissions also cause the following conflicts of interest:

• regardless of what is best for the client, the broker would prefer a long-term contract to lock in their commissions longer.

We research the market daily and upload current market information to our Market Information Pages so that our clients have constant access to price drivers and pricing movements via our website, which enables them to make better energy choices.

The importance of access to Current Market information can’t be understated. Price drivers are changing in the increasingly complex wholesale electricity market, as it transitions towards a low carbon future.

The electricity grid requires synchronous dispatchable generation for reliability and stability, and while increasing levels of Variable Renewable Energy (VRE), mainly wind and solar are welcome, they don’t provide synchronous dispatchable generation that’s always available.

As a result of the increasing amount of VRE, the system is showing signs of stress, and these serious issues need to be addressed. In addition to reliability, the need for ancillary services to manage voltage and frequency is increasing.

There are certainly pricing concerns as generators are scheduled to retire from the aging coal fleet. There is also an increasing need for massive storage. All these issues have to be factored into future pricing forecasts.

Trading energy is an energy retailer’s core business. There are a number of different financial instruments available which can be employed to manage risk. If these risks are not properly managed a retailer could be forced into insolvency, as was the case with the energy retailers Jack Green and Go Energy.

Timing to the market is a lot more important than aggregation and size of load, as wholesale prices dictate offers because retailers cover their risks by hedging the load they win.

We upload market news on issues that will impact pricing onto our Market Information pages. We graph hedging and spot market prices in each region of the National Electricity Market (NEM), as well as prices in the WA Electricity Market (WEM).