The UK has roughly 800 business energy brokers ranging from one-person consultancies to FTSE-listed groups. This guide explains how brokers work, when they save you money, when they cost you money, and what to look for in a reputable broker in 2026.
How does a business energy broker get paid?
Two models:
- Commission (95% of brokers): A markup added to the supplier’s wholesale unit rate, typically 0.3-2.0p/kWh, paid by the supplier to the broker over the contract life. The cost is included in your unit rate.
- Fee (5% of brokers): A flat consultancy fee paid by you. Suppliers then quote at “net” rates with no broker uplift.
Reputable brokers disclose commission upfront on every quote. From October 2024 Ofgem’s code of practice for TPIs (Third-Party Intermediaries) in the non-domestic energy market mandates commission disclosure.
When does a broker save you money?
- You have under £500k/year energy spend (no in-house procurement team).
- You have multiple sites or complex meter configurations.
- Your contract is currently with a Big Six supplier on a “standard” tariff.
- You need supplier-only tariffs that are not advertised on the open market.
When does a broker cost you money?
- You only get one quote (not a real tender).
- The broker hides commission (“uplifted” rates).
- The broker auto-renews you each year on supplier deals that pay them the highest commission rather than you the lowest price.
- You have over £1m/year and an in-house energy manager who could tender direct.
How to spot a reputable broker
- Member of UIA (Utilities Intermediaries Association) or similar.
- Discloses commission per supplier on every quote.
- Tenders to at least 8 suppliers per renewal.
- Provides written quotes with all-in annual cost and contract terms.
- Has a UK office and named account manager you can speak to.
- Does not pressure you to sign immediately (“today only” pricing is a red flag).
Should you use a broker, broker comparison site, or go direct?
- Direct (DIY): Best for <£5k/year energy spend.
- Online comparison site: Best for simple single-meter SMEs.
- Boutique broker: Best for SMEs £5k-£500k/year, multi-site, or complex.
- Tier-1 consultancy: Best for £500k+/year with portfolio strategy needs.
Frequently Asked Questions
Yes — from October 2024 Ofgem’s TPI Code of Practice mandates commission disclosure, fair sales practices and dispute escalation paths for non-domestic energy intermediaries. Brokers can also voluntarily join the UIA for additional standards.
Typically 0.3-2.0p/kWh added to the supplier’s base unit rate, paid as a monthly commission over the contract life. For a 250,000 kWh/year SME on a 3-year contract at 1p/kWh commission, that is around £7,500 over the contract.
Not necessarily — reputable brokers run open tenders to 8-15 suppliers, getting access to bulk pricing pools and broker-only tariffs that often beat direct quotes even after commission. Bad brokers can cost more if they only quote one supplier or hide commission.
Yes — you can revoke a Letter of Authority at any time and appoint a new broker for your next renewal. The current contract continues with the existing supplier; only the broker relationship changes.
If your energy spend is over £5k/year, almost always yes — the time saved and the better rates available through a broker outweigh the commission. Below £5k/year, going direct or using a comparison site is often more cost-effective.
Want a broker that discloses every penny of commission upfront? Get a free 60-second business energy quote — full commission breakdown, written quote, and no pressure.
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