How brokers are paid
Most brokers are paid by the supplier, through an uplift added to your unit rate (pence per kWh), your standing charge (pence per day), or both. You pay it on every unit for the length of the contract. That is a normal way to be paid, but you should always know what it is. See broker fees explained for how to work out what an uplift costs you.
Seven questions to ask any broker
- What will you be paid on this contract? Ask for the uplift in writing, in pence per kWh and pence per day, and the total over the term. A trustworthy broker will tell you without hesitation.
- Which suppliers did you approach? No broker covers every supplier. Ask which ones were asked to quote and why any were left out.
- Are you a member of a dispute resolution scheme? Check they belong to an independent scheme such as the Energy Ombudsman, so you have somewhere to go if something goes wrong.
- Do you follow a code of practice? For example, the Retail Energy Code TPI Code of Practice.
- What happens at renewal? Will they remind you in good time, and will they re-tender or simply roll you on?
- What exactly does the letter of authority allow? It should let them get information and quotes. It should not let anyone agree a contract without your say-so.
- Does the contract match the quote? Check rates, term, start date and standing charge on the supplier's contract before you sign.
Warning signs
Pressure to sign today. Reluctance to say what they are paid. Quotes with no supplier name. A verbal agreement on a call you were not expecting. Claims to cover the whole market. Any of these is a reason to pause and ask more questions.
Broker, consultant or comparison site?
Comparison sites are quick for simple supplies. Brokers handle the switch for you. Consultants also advise on strategy, bills, metering and compliance. Many firms, including us, do a mix. Read broker or consultant: what is the difference.
What the rules already say, and what is coming
Since October 2024, suppliers have had to show any broker fees in the principal terms of a business contract. Suppliers should also only use brokers who belong to a redress scheme, such as the Energy Ombudsman, when arranging small business contracts. The government has announced plans for Ofgem to regulate brokers directly. Until that is in place, the questions above are your best protection.
How we answer those questions
We are independent and not tied to any supplier. We disclose our fee on every quote, in writing, before you sign. We are a member of the Energy Ombudsman and a signatory to the Retail Energy Code TPI Code of Practice. See how we are paid.
Common questions
How much commission do energy brokers make?
It varies by broker, supplier, contract size and term. The only way to know is to ask for the uplift in writing on the quote you are being offered.
Do I have to use a broker?
No. You can go direct to suppliers or use a comparison site. A broker or consultant is worth it when they save you time, find a better deal and are open about their fee.
Can I check what my current broker is paid?
Yes. For non-domestic contracts signed since 1 October 2024, suppliers must show any broker fees in the contract's principal terms and give you the information on request. You can also ask your broker directly.
Is a broker the same as a consultant?
Not always. Read broker or consultant for the difference.
Put us to the test
Send us a recent bill. We will tell you where you stand and, on any quote, exactly what we would be paid.
Get a free benchmarkThis page is general information, not advice on your specific circumstances. Contract terms, charges and scheme rules change, so it is worth confirming the detail for your sites before making a decision.