Who brokers are
Energy brokers, consultants and price comparison services are known as third party intermediaries, or TPIs. They help businesses find a suitable contract and then deal with the chosen supplier.
Ofgem says brokers charge for their services. Some charge an upfront fee, but most are paid a commission by the energy supplier you choose.
How energy brokers are paid
There are three common models.
Commission in your rates
The broker's fee is added to the price you pay for energy. This is often called an uplift. It can be added to:
- the unit rate, in pence per kWh
- the standing charge, in pence per day
- or both
The supplier collects it through your bill and passes it to the broker. You pay it as part of your normal energy costs for the length of the contract.
Fixed fees
Some advisers charge a fixed fee instead. You pay it directly, for example for a tender, a bill review or ongoing account management.
A mix of both
Some arrangements combine a smaller uplift with a fee for specific work.
| Model | How it is charged | Where you see it |
|---|---|---|
| Unit rate uplift | Pence per kWh added to the unit rate | In your unit rate and the contract principal terms |
| Standing charge uplift | Pence per day added to the standing charge | In your standing charge and the contract principal terms |
| Fixed fee | An agreed sum paid to the adviser | In your agreement with the adviser and their invoice |
A worked example
The figures below are illustrative only. They are not a quote and are not meant to show a typical rate.
Say your site uses 100,000 kWh of electricity a year, and the uplift is 0.5p per kWh.
- 100,000 kWh × 0.5p = £500 a year
- Over a three year contract at the same usage, that is £1,500
If there is also a standing charge uplift of, say, 10p a day, that adds £36.50 a year (365 days × 10p).
Two points follow from this. First, a unit rate uplift rises and falls with your usage. Second, it runs for the whole contract term. Looking at the total cost over the term gives the clearest picture.
Want to see what you are paying now?
Send us a recent bill and your contract and we will show you the rates you are on and what the market would offer, with our own fee shown up front. Free and no obligation.
Get a free benchmarkWhat the rules say
Broker costs in your contract
Since 1 October 2022, suppliers have had to show broker costs in the principal terms of microbusiness contracts.
Ofgem then extended this to all non domestic customers for contracts signed on or after 1 October 2024. Suppliers must clearly display any broker fees in the principal terms, and make this information available on request.
In short, whatever the size of your business, a contract signed since October 2024 should show what your broker is paid.
Redress schemes
Since 1 December 2022, suppliers have only been allowed to work with brokers that belong to a qualifying dispute resolution scheme when arranging microbusiness contracts.
From 19 December 2024, this was extended to small business contracts. Here, a small business means one with fewer than 50 employees and turnover up to £6.5 million or a balance sheet up to £5 million, or annual use of no more than 200,000 kWh of electricity or 500,000 kWh of gas.
The Energy Ombudsman is one such scheme. If you have a complaint about a broker, use the broker's own complaints process first. If it is not resolved within eight weeks, or you receive a deadlock letter sooner, the Energy Ombudsman may be able to help.
Businesses above the small business thresholds are not eligible for this redress route, so the terms of your agreement with any adviser are worth reading closely.
No cooling off period
Ofgem notes there is no cooling off period after you agree a business energy contract. It is worth reading the terms, including the broker costs, before you sign.
Regulation of brokers
On 23 October 2025, the government published its response to its consultation on TPIs. It confirmed that it intends to regulate TPIs, including energy brokers, directly by appointing Ofgem as regulator when parliamentary time allows.
Ofgem says this will be done through the Energy Independence Bill announced in the King's Speech in May 2026, subject to parliamentary approval. Ofgem opened a market review of TPIs in June 2026 and expects to publish its final report in winter 2026 to 2027.
Until new rules take effect, the protections above apply through suppliers' licences.
Questions to ask any adviser about fees
These questions help you compare advice on a like for like basis:
- How are you paid: commission, a fixed fee, or both?
- What is the uplift on the unit rate and on the standing charge, in pence?
- What is the total cost over the full contract term, based on my usage?
- Does your fee change depending on which supplier I choose?
- Will the fee be shown in the principal terms of my contract?
- Are you a member of a redress scheme such as the Energy Ombudsman?
- What happens to the fee if my usage changes or the contract ends early?
- What support is included during the contract, not just at signing?
It is worth asking for the answers in writing, so you can compare them side by side.
How Energy Planner is paid
Energy Planner is an independent consultancy, not tied to any supplier. We compare quotes across a broad supplier panel and arrange the contract you choose. Our commission is disclosed at quote stage and shown in your supplier contract, and any fixed fee is agreed with you in writing before work starts, so you can see what we are paid before you sign. We are registered with the Energy Ombudsman. You can read more on our How we are paid page, or in our guide to choosing between a broker and a consultant.
Questions people ask
How are energy brokers paid?
Ofgem says most brokers are paid a commission by the supplier you choose, and some charge an upfront fee. Commission is usually added to your unit rate, your standing charge or both, and collected through your bill. Some advisers charge a fixed fee instead, or as well.
What is a broker uplift?
An uplift is the amount added to your energy price to pay the broker. It is usually shown in pence per kWh on the unit rate, or pence per day on the standing charge. As an illustration only, an uplift of 0.5p per kWh on 100,000 kWh a year adds £500 a year.
Can I see how much my broker is paid?
For contracts signed on or after 1 October 2024, suppliers must clearly display broker fees in the principal terms for all non domestic customers. They must also provide this information on request. Microbusinesses have had this protection since October 2022.
Are energy brokers regulated by Ofgem?
Ofgem does not yet regulate brokers directly. It regulates suppliers, and supplier rules cover broker fee disclosure and redress scheme membership for micro and small business contracts. In October 2025 the government confirmed it intends to appoint Ofgem as regulator of TPIs, including energy brokers, when parliamentary time allows.
Where can I complain about an energy broker?
Start with the broker's own complaints process. If the complaint is not resolved within eight weeks, or you receive a deadlock letter, the Energy Ombudsman may be able to help eligible micro and small businesses. It is worth checking an adviser's redress scheme membership before you sign.
Sources: Ofgem, set up a business energy contract; Ofgem, Non Domestic Market Review factsheet (April 2024); Ofgem, Microbusiness Strategic Review decision (2022); Ofgem, small business conditions from 19 December 2024; legislation.gov.uk, SI 2024/954; Energy Ombudsman, can my business get help; UK Parliament, written statement (23 October 2025); Ofgem, TPI market review call for input (June 2026). This article is general information as at October 2026, not advice on your specific circumstances. Rules and market conditions change and outcomes depend on your own contracts, so it is worth confirming the detail for your sites before making a decision.