Business Energy Brokers UK 2026: Fees, Commission & How to Compare Quick Answer
A business energy broker helps companies compare and arrange commercial gas and electricity contracts with energy suppliers.
A broker can:
collect quotes from several suppliers
compare unit rates and standing charges
negotiate contract terms
manage the switching process
monitor renewal dates
help with billing or account queries
provide energy procurement or management services
But business energy brokers aren’t necessarily free.
You can pay:
directly through an agreed fee; orindirectly where the broker receives commission through the energy supplier, which can be incorporated into what you pay for energy.
Our view: don’t choose an energy broker simply because they claim to find the “cheapest deal”.
Ask:
Which suppliers will you compare?
How many quotes will you obtain?
How are you paid?
How much will you earn from my contract?
What am I authorising you to do?
What support will you provide after the contract is signed?
Then compare the broker-arranged contract against alternatives.
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Key Takeaways
Energy brokers act as intermediaries between businesses and energy suppliers.
Brokers can save businesses time by gathering and comparing commercial energy quotations.
A broker may negotiate contracts and provide ongoing account, procurement or energy-management services.
Energy brokers charge for their services. Payment can be direct or incorporated into the energy price through supplier-paid commission.A broker doesn’t necessarily compare every UK business energy supplier.
Ask which suppliers are included before assuming you’re seeing the whole market.
Broker commission can be linked to how much energy your business consumes.
Read any Letter of Authority carefully before signing it.
Business energy contracts can be legally binding when agreed over the phone.
Most business energy contracts don’t have the standard cooling-off period associated with domestic contracts.
If a broker is paid by an energy supplier, relevant redress requirements can apply.
Ofgem is preparing a new regulatory framework for third-party intermediaries, including energy brokers.
Contents
How Do We Work?
Our comparisons are researched and reviewed by the Compare Your Business Costs editorial team using provider information, official UK guidance and business buying criteria. See how Compare Your Business Costs works.
Energy prices, broker fees, commissions and contract terms vary between suppliers, intermediaries and individual businesses. Always check the complete terms before agreeing a business energy contract.
Authored by: Ally Cox – Business Technology & B2B Services Specialist, 10+ years’ experience.
Last updated: September 2026
What Is a Business Energy Broker? A business energy broker is a third-party intermediary that helps businesses find and arrange commercial electricity or gas contracts, so rather than contacting several suppliers yourself, you give the broker information about your:
business
current contract
energy consumption
meter or supply
contract requirements
The broker can then approach suppliers and obtain quotations on your behalf.
Some brokers primarily arrange contracts while others provide wider services including:
energy procurement
contract management
billing support
usage monitoring
renewal management
energy efficiency
sustainability support
Important: the broker doesn’t supply your electricity or gas – your energy supply contract remains with the energy supplier.
What Does a Business Energy Broker Do? Services can include:
Service What It Means
Market comparison
Obtaining prices from a panel of suppliers
Contract negotiation
Negotiating rates or commercial terms
Procurement
Helping determine when and how energy is purchased
Switching support
Helping arrange a change of supplier
Renewal management
Monitoring contract dates and arranging future quotations
Billing support
Helping investigate billing issues
Usage analysis
Reviewing energy consumption
Energy management
Helping identify opportunities to reduce consumption
Green energy procurement
Comparing renewable energy options
Not every broker provides every service.
Our view: establish exactly what you’re buying.
A broker earning commission only for arranging a contract is providing a different service from an energy consultancy managing procurement, billing and consumption throughout a multi-year agreement.
How Do Business Energy Brokers Compare Suppliers? A broker can request prices from the suppliers it works with using information about your business and energy usage.
This can include:
annual electricity consumption
annual gas consumption
MPAN
MPRN
meter type
business postcode
current supplier
contract end date
credit profile
preferred contract length
The broker can then compare factors such as:
unit rate
standing charge
estimated annual cost
contract length
fixed or flexible pricing
payment terms
renewable options
supplier requirements
Does an Energy Broker Compare the Whole Market? Not necessarily.
A broker may work with a panel of suppliers rather than every supplier operating in the business energy market.
Ask: “Exactly which suppliers will you approach for my quotation?”
and: “How many offers will you show me?”
This is more useful than simply asking whether a broker compares “lots of suppliers”.
Can a Broker Guarantee the Cheapest Business Energy Deal? Be cautious about blanket claims.
The broker may not compare every supplier, and commercial energy quotations depend on your usage, location, contract requirements, credit profile and current market conditions.
Our view: we’d prefer a broker that clearly explains its supplier panel and methodology over one making an unsupported “cheapest deal” promise.
How Much Does a Business Energy Broker Cost? There isn’t one standard UK business energy broker fee as a broker can be paid in different ways.
Payment Method How It Works
Fixed fee
Your business pays an agreed amount for the broker’s service
Upfront fee
A fee is paid when using or appointing the broker
Supplier-paid commission
The supplier pays the broker, with the cost potentially incorporated into your energy price
Consumption-linked commission
Broker remuneration is linked to the amount of energy consumed
Ongoing service fee
You pay for continuing energy-management or account services
Don’t assume “no upfront fee” means “free”.
If commission is incorporated into your energy rate, you may effectively pay the broker through your energy bills throughout the contract.
Compare business energy quotes →
How Does Business Energy Broker Commission Work? A common model is for the energy supplier to pay the broker.
The broker’s remuneration can be incorporated into the commercial terms of the energy contract.
For example, commission could be linked to:
each kWh of energy consumed
the standing charge
a fixed amount
This matters because a small-looking pence-per-kWh commission can become substantial when multiplied across a large amount of consumption and several years.
Ask for Broker Commission in Writing Before agreeing a contract, ask:
What is your total commission or fee?
Is it fixed or linked to consumption?
How much is added per kWh?
Is anything added to the standing charge?
Who pays you?
How does this affect my total contract cost?
Then make sure the information matches the contract information supplied by the energy supplier.
Business Energy Broker Commission Example Here’s why commission deserves attention.
Suppose a broker’s remuneration effectively adds 0.5p per kWh to an electricity contract.
For a business using 50,000 kWh per year : 50,000 × £0.005 = £250 per year
Over three years: £250 × 3 = £750
For a business using 250,000 kWh per year : 250,000 × £0.005 = £1,250 per year
Over three years: £3,750
And at 1,000,000 kWh per year : 1,000,000 × £0.005 = £5,000 per year
Over three years: £15,000
These are illustrative calculations rather than typical broker commission rates.
The point is that: Broker cost = commission rate × consumption × contract duration.
Where commission is structured this way, businesses with higher consumption need to pay particularly close attention to the total cost.
Does High Commission Automatically Mean a Bad Deal? No.
Suppose a broker saves your business significant procurement time, negotiates favourable terms, resolves billing problems and manages a complex energy portfolio.
A substantial fee could still represent value.
Equally, a high commission for little more than arranging a contract may be harder to justify.
Our view: don’t judge the fee without judging the service, but don’t judge the service without knowing the fee.
Business Energy Broker vs Going Direct to Suppliers You don’t have to use a broker. Businesses can approach energy suppliers directly.
Using a Broker Going Direct
Broker gathers quotes
You gather quotations yourself
Can reduce internal admin
Requires more internal time
May negotiate on your behalf
You negotiate directly
Broker fee/commission may apply
No external broker commission
May provide ongoing support
You deal directly with the supplier
May compare only its supplier panel
You decide which suppliers to approach
Can Going Direct Be Cheaper? Potentially.
But a direct quote isn’t automatically cheaper either as a broker may negotiate a commercial rate or provide enough additional value to justify its remuneration.
The useful comparison is: total cost through broker + service received
versus: total cost direct + internal time required.
If possible, compare both.
Energy Broker vs Energy Consultant: What’s the Difference? The terms overlap considerably, and some companies provide both services.
Broadly:
Area Energy Broker Energy Consultant
Energy procurement
Common
Common
Supplier quotations
Core service
Can be included
Contract negotiation
Common
Can be included
Energy efficiency
Sometimes
Often
Consumption analysis
Sometimes
Often
Carbon strategy
Sometimes
More likely
Long-term energy strategy
Sometimes
Often
Don’t get too caught up in the job title.
Compare the actual services, expertise, fees and responsibilities.
What Is a Letter of Authority for an Energy Broker? A Letter of Authority (LOA) gives an energy broker permission to act on behalf of your business for specified activities.
That could allow the broker to:
request information from your supplier
access consumption information
obtain contract details
request quotations
communicate with suppliers on your behalf
The precise authority depends on the document.
Read it before signing.
Check:
exactly what the broker can do
whether it can enter contracts on your behalf
how long the authority lasts
which meters or premises it covers
how you can withdraw the authority
Our view: an LOA should be treated as a business authorisation document, not an admin form to sign automatically.
Are Business Energy Brokers Regulated by Ofgem? This is an important area to understand in 2026.
Ofgem does not currently regulate energy brokers in the same way it regulates licensed energy suppliers.
However, the regulatory landscape is changing.
The UK government has set out plans for Ofgem to regulate third-party intermediaries in the retail energy market.
These intermediaries include:
energy brokers
price comparison websites
other services that help customers arrange energy contracts
Ofgem launched a review of the TPI market in June 2026 and published good-practice guidance for intermediaries in July 2026 while preparing for the future regulatory framework.
What Protection Exists Now? If your broker is paid by an energy supplier, relevant redress requirements apply.
Before appointing a broker, check whether it belongs to an appropriate redress scheme.
Ofgem currently directs businesses to check:
the Energy Ombudsman broker register
the Utilities Intermediaries Association accredited member list
For micro and small businesses, brokers should be signed up to an appropriate alternative redress scheme where required.
Be wary of a broker simply claiming to be “Ofgem approved”.
Ask precisely what accreditation, membership or redress scheme they are referring to.
Energy Brokers for Microbusinesses Microbusinesses receive additional protections in the business energy market and you might qualify as a microbusiness based on:
employee numbers and turnover/balance sheet; or
annual electricity or gas consumption.
If you qualify and use a broker paid by an energy supplier, additional requirements apply around broker remuneration.
Information about broker costs should be provided before you agree to the contract.
Why This Matters for Small Businesses Smaller businesses may have:
less internal procurement expertise
less time to compare suppliers
lower negotiating resources
less experience interpreting commercial energy contracts
That can make a good broker useful.
But it also makes transparency especially important.
Never assume a broker is acting as an independent adviser purely because you aren’t paying them directly.
Understand the commercial relationship.
Who Could Benefit From Using a Business Energy Broker? A broker may be particularly useful if:
Your Energy Contract Is Ending
A broker can gather renewal and switching quotations.
See our Business Energy Switching Guide .
You’re on Deemed or Out-of-Contract Rates
You may want to arrange a contracted tariff rather than continuing on deemed rates or out-of-contract rates .
You Have Multiple Premises
Managing different meters, sites, suppliers and renewal dates can become time-consuming.
You Have High Energy Consumption
Small differences in contract rates can become financially significant at higher consumption levels.
You Don’t Have Internal Procurement Expertise
A broker can reduce the time spent requesting and comparing supplier quotes.
You Need More Complex Procurement
Large energy users may require more sophisticated procurement strategies than simply choosing a standard fixed tariff.
See our Business Energy Procurement Services guide.
Business Energy Broker Pros & Cons
Potential Advantages Potential Disadvantages
Saves time gathering quotations
Broker fees or commission increase costs
Can negotiate with suppliers
May not compare the whole market
Can manage renewals
Quality and transparency vary
May provide billing support
Long-term commission can become substantial
Can provide market expertise
You may grant the broker significant authority
Useful for complex procurement
Potential conflicts of interest need to be understood
Our view: the main advantage isn’t automatically cheaper energy.
It’s potentially getting better procurement with less internal work .
Whether that represents value depends on the fee.
Business Energy Broker Red Flags Be cautious if a broker:
won’t explain how it gets paid
won’t disclose its supplier panel
pressures you to agree immediately
claims you must use a broker to switch
claims to be “Ofgem approved” without explaining what that means
promises guaranteed savings without analysing your current contract
won’t put important terms in writing
is vague about the authority you’re granting
won’t explain the length of its agreement
discourages you from checking the supplier contract
Watch for Unsolicited Calls Cold calling doesn’t automatically mean a broker is illegitimate.
But don’t provide sensitive information or agree a contract simply because someone claims your current contract is about to expire.
Verify:
the company
the caller
your actual contract dates
the proposed tariff
the broker’s remuneration
independently before proceeding.
15 Questions to Ask a Business Energy Broker Before appointing a broker, ask:
Which energy suppliers do you work with? Do you compare the whole market? How many supplier quotes will you obtain? How are you paid? What is your total commission or fee? Is your commission linked to my energy consumption? Is anything added to my unit rate or standing charge? What services are included in that fee? What support do you provide during the contract? Will you automatically contact me at renewal? What does your Letter of Authority permit you to do? Can you enter a contract on my behalf? Which redress scheme do you belong to? How do I terminate my agreement with you? Can you provide all of this in writing before I agree?
If a broker is reluctant to answer questions 1–8 clearly, we’d be cautious about proceeding.
Our View: Is a Business Energy Broker Worth It? A good energy broker can absolutely be useful.
But the old question “Can this broker save me money?”
is too simplistic.
We’d ask “Does the value of this broker’s procurement and support exceed what we’re paying them?”
For a small business with one meter and relatively low consumption, it may be straightforward to compare contracts without extensive consultancy.
For a company with:
multiple sites
high consumption
several meters
different renewal dates
complex procurement requirements
specialist support may be considerably more valuable.
The Comparison We’d Make Suppose Broker A finds an energy contract costing: £50,000 per year including £500 of broker remuneration.
Broker B finds: £49,500 per year including £2,000 of broker remuneration.
Simply choosing Broker A because its commission is lower would make little sense if the complete contract from Broker B costs less and meets the same requirements.
Equally, a broker shouldn’t hide £2,000 of remuneration simply because the overall contract is competitive.
You need both pieces of information:
What is the complete energy contract going to cost?
What is the intermediary being paid?
Our Preferred Buying Order Energy requirements → supplier panel → contract options → total contract cost → broker remuneration → service → authority → contract terms.
Not:
“The broker says it’s free, so we’ll use them.”
Compare business energy prices →
Free comparison • No obligation • Compare UK business gas & electricity
Business Energy Broker FAQs What is a business energy broker?
A business energy broker is a third-party intermediary that helps businesses compare and arrange commercial gas and electricity contracts with energy suppliers.
Do business energy brokers charge?
Yes. Brokers charge for their services. You might pay them directly, or they may receive commission through the energy supplier which is incorporated into the cost of your energy contract.
Are business energy brokers free?
Don’t assume so. A broker may not send you a separate invoice but can still be paid through commission associated with your energy contract.
How much commission does an energy broker make?
There isn’t one standard commission. It varies between brokers, suppliers, services and contracts. Ask for the broker’s remuneration and how it is calculated before agreeing.
Is broker commission added to my unit rate?
It can be. Broker remuneration may be linked to each unit of energy consumed, a standing charge or another agreed payment structure.
Does an energy broker compare every supplier?
Not necessarily. Brokers can work with a supplier panel. Ask exactly which suppliers will be approached.
Can I get business energy without a broker?
Yes. You can contact business energy suppliers directly or use a comparison service.
Can a broker get cheaper business energy?
A broker may find or negotiate a competitive contract, but savings aren’t guaranteed. Compare the complete broker-arranged contract against suitable alternatives.
Are energy brokers regulated by Ofgem?
Ofgem does not currently regulate energy brokers in the same way as licensed suppliers. However, Ofgem is preparing to regulate the third-party intermediary sector following the government’s decision to give it new powers.
What is a TPI?
TPI stands for third-party intermediary. In the energy market this can include brokers, comparison websites and other companies that help consumers arrange or manage energy contracts.
What is an energy broker Letter of Authority?
A Letter of Authority gives a broker permission to carry out specified activities on your behalf. Read it carefully to understand exactly what authority you’re granting.
Can an energy broker sign a contract for my business?
Potentially, depending on the authority you’ve granted. Check the Letter of Authority and broker agreement carefully.
Can a business energy contract agreed over the phone be binding?
Yes. Business energy contracts can be legally binding when agreed verbally, and most don’t provide a standard cooling-off period.
What happens if I have a problem with an energy broker?
Depending on your business and broker, you may have access to an alternative dispute resolution or qualifying dispute settlement scheme. Check which scheme your broker belongs to before entering the agreement.
Should I use an energy broker or go direct?
Compare both where practical. A broker can reduce procurement work and potentially provide additional expertise, but fees and commissions should be included when assessing the complete cost.
Are energy brokers useful for small businesses?
They can be, particularly where a business doesn’t have the time or expertise to compare commercial energy contracts. For a straightforward low-consumption supply, it’s still worth comparing whether the broker’s service justifies its cost.
Can brokers find renewable business energy?
Many brokers can source renewable electricity contracts. Ask which suppliers and renewable options they can access and how environmental claims are evidenced.
Can a broker help if I’m on deemed rates?
Yes. A broker can help obtain quotations for a contracted tariff. You can also contact suppliers directly.
Compare Business Energy Quotes Before comparing business energy, gather:
a recent electricity or gas bill
annual consumption
MPAN and/or MPRN
current supplier
contract end date
current unit rate
standing charge
business postcode
If you receive a broker-arranged quote, compare:
estimated annual energy cost
contract duration
unit rate
standing charge
broker commission
broker services
supplier
renewal and termination terms
The cheapest-looking unit rate isn’t necessarily the lowest-cost contract.
Compare business electricity & gas prices →
Free comparison • No obligation • Compare UK business energy deals
Compare & Switch Business Energy Broker & Contract Guides Energy Management & Costs Green Business Energy Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
