Business energy brokers: how they work and what to watch for

A good energy broker can save you time and explain options you might not find alone. A poor one can tie you into an expensive contract with fees you never saw. We should say up front that Business Energy Expert is a comparison and brokerage service: suppliers pay us commission, which is included in the prices we quote and disclosed before you agree a contract. You can read exactly how we make money. This guide tries to give you the full picture, including the parts that don’t flatter brokers.

What does a business energy broker do?

A business energy broker finds and arranges energy contracts between businesses and suppliers, usually in return for commission paid through the supplier. Ofgem and the government call brokers “third-party intermediaries”, or TPIs.

The government’s definition of the sector covers energy brokers, price comparison websites, auto-switchers, bill-splitters and resellers. In suppliers’ licences, a third party is an organisation or person that gives a business customer information or advice about a supplier’s charges or terms, and whose payment is made or processed by the supplier.

In practice a broker will typically:

• collect your meter details and usage
• ask suppliers for quotes and present the options
• explain contract terms, lengths and renewal dates
• handle the paperwork to agree the contract

To act for you, a broker will normally ask you to sign a letter of authority.

How are energy brokers paid?

Brokers are paid in one of two ways: commission from the supplier, which is passed on to you in your unit rate, your standing charge or both, or a fee you pay them directly. Citizens Advice advises checking how a broker will charge you before you ask them to find a deal.

Suppliers’ licences define these “Third Party Costs” as any fees, commission or other benefit processed by the supplier and paid to the broker that are passed on to the business customer. The rules on showing them are:

• All business customers: for contracts signed on or after 1 October 2024, the principal terms must clearly show any broker fees, and the supplier must give you information on them for the full contract on request. They are shown as a cost per unit of energy, or per day where they form part of the standing charge.
• Microbusinesses: broker costs must also be shown as a total in pounds and pence for the full length of the contract. Citizens Advice puts it simply: your supplier must tell you the total amount your broker is getting.

Example (illustrative figures): if a broker’s commission adds 1p per kWh to your unit rate and you use 20,000 kWh a year on a two-year contract, the commission costs you 1p × 40,000 kWh = £400 over the contract. That is not a typical figure, just a way to see how a small uplift adds up.

What rules do energy brokers have to follow?

Ofgem doesn’t yet regulate brokers directly. Instead, most current rules sit in suppliers’ licences, so they bite through the supplier.

• Fee disclosure. As above, broker fees must appear in the principal terms for all business contracts from 1 October 2024.
• Dispute resolution. For microbusiness contracts since 1 December 2022, and small business contracts since 19 December 2024, suppliers may only work with brokers that belong to a qualifying dispute settlement scheme. Suppliers must also give the scheme any information it needs to settle a dispute.
• Explaining terms on sales calls. For microbusinesses, Ofgem has said that sending a link or email during a call is not enough. Whoever sells the contract verbally must clearly explain the principal terms before you agree.
• Fair treatment. Since 1 July 2024, Ofgem’s Standards of Conduct require suppliers to treat all business customers fairly.

What are Ofgem’s good-practice principles for brokers?

On 20 July 2026, Ofgem published good-practice principles for brokers and price comparison sites. Ofgem says they “are not enforceable rules” but set out its starting view of what good looks like. They are built around three outcomes for customers:

1. Clear, accurate and timely information. Brokers should explain who they are and what they do, say whether they searched all suppliers or only some, keep offers up to date, set out the principal terms (price, contract length, start date, renewal terms, termination conditions and early exit fees) before you agree, explain their commission or fee including how much they receive and how you pay it, and check you understand.
2. Complaints handled fairly and promptly. A clear, easy complaints process that explains how to escalate, and membership of a qualifying dispute scheme for micro and small business customers.
3. Fair value. Commission or fees should reflect the service provided, and brokers should review them regularly.

Ofgem’s announcement names the problems it has seen in parts of the market: a lack of transparency, mis-selling, hidden commissions and poor access to help when things go wrong.

Is the government going to regulate energy brokers?

Yes. In October 2025 the government confirmed it intends to appoint Ofgem as the regulator for energy brokers and other intermediaries. Its response sets out:

• a registration regime, with a 12 to 18 month period for existing brokers to register, after which operating without Ofgem authorisation would be illegal
• high-level principles followed by more detailed rules
• powers for Ofgem to order redress to customers, fine firms and exclude them from the market
• coverage of both household and business intermediaries, although the evidence suggests harm is concentrated among small and medium-sized businesses and charities

This needs new primary legislation, which the government says it will bring forward “when parliamentary time allows”. Until then, the supplier licence rules and Ofgem’s voluntary principles are what apply.

What are the red flags with an energy broker?

• Pressure to agree on the call. Citizens Advice warns that business energy contracts agreed over the phone are binding, and you won’t get a cooling-off period. If you are being rushed, stop and ask for everything in writing.
• Vague answers about commission. You are entitled to know what your broker is paid. If they won’t tell you, ask the supplier, which must provide the information on request.
• Unclear market coverage. Ofgem expects brokers to say whether they searched all suppliers or only certain ones. Ask which suppliers they checked.
• A broad or open-ended letter of authority. Read it before signing. Check what it lets the broker do, how long it lasts and whether it allows them to agree contracts for you.
• No written contract before you commit. Citizens Advice advises always asking for a written contract so you can check the terms before you agree.
• No dispute scheme. If you are a micro or small business and the broker can’t name its scheme, suppliers shouldn’t be working with it on your contract.
• Unexpected contact about your “renewal”. An unsolicited call is not wrong in itself, but check who you are speaking to and confirm your real contract end date with your supplier.

How do you check an energy broker before using them?

1. Ask which dispute scheme they belong to and check the scheme’s register. Citizens Advice lists the Energy Ombudsman, the Utilities Intermediaries Association (UIA) and the Dispute Resolution Ombudsman.
2. Ask how they are paid and how much, in pence per kWh, pence per day and as a total for the contract.
3. Ask which suppliers they searched.
4. Get quotes and principal terms in writing before agreeing, and compare at least one against a quote direct from a supplier.
5. Read the letter of authority and keep a copy.
6. Check your end date so you know when you can move without penalty. See our contract renewal guide.

How do you complain about an energy broker?

Start with the broker’s own complaints process. If that doesn’t resolve it, the next step depends on the broker’s scheme:

• Energy Ombudsman: you can escalate after 8 weeks, or sooner with a deadlock letter. It covers sales, customer service, switching and charges, and can require payments of up to £10,000.
• UIA: Citizens Advice says you can escalate once 15 working days have passed since you complained.
• Dispute Resolution Ombudsman: after 8 weeks, or sooner with a deadlock letter.

Our business energy complaints guide covers the full process, and our microbusiness guide explains who counts as micro or small.

How does Business Energy Expert work?

We compare quotes from the suppliers we work with. Suppliers pay us commission, which is included in the prices we show and disclosed before you agree a contract, so you can see what you are paying for our service. You are never obliged to use us, and it is always worth checking a direct quote too. Full details are on our how we make money page.

Frequently asked questions