A Guide to Business Energy Brokers
If you own or manage a business, you know utility costs can be high. Energy prices always seem to be rising, and understanding your consumption isn’t always easy. To reduce your business operating costs and improve your profit margins, it’s important to try and find the best energy deal on the market.
Unfortunately, not every business owner has the time to devote to comparing energy costs across potential suppliers. This is where a business energy broker comes in, they can ultimately help you secure the most optimal business energy contract that is tailored to your unique business operations and saves you money.
However, there are thousands of energy brokers to choose from, poor regulations to hold rogue brokers accountable for any unethical practices and horror stories of businesses being exploited with mis-sold contracts with hidden fees. Therefore it is vital to find a honest and transparent energy broker.
In this guide you will learn everything you need to know to help you select a broker; from what they are, their pros and cons, how they compare energy, and what you need to do to prepare for your first call with one.
TL:DR:
- What an energy broker actually does – Acts as an independent middle-person who short-lists trusted suppliers, negotiates contracts, tracks wholesale prices and handles the switching admin.
- Why use a broker instead of going direct? – A specialist can uncover supplier-only tariffs that aren’t advertised publicly, cut the time you spend gathering quotes, and flag contract pitfalls (hidden rollover clauses, early-exit fees) before you sign.
- Typical service bundle – Expect quote gathering, supplier transition management, market-price monitoring, renewal prompts and optional energy-efficiency advice rolled into one relationship.
- How fees work & why transparency matters – Brokers are paid a small commission (around 0.05–5 p/kWh) hidden inside the unit rate; since 1 Oct 2024 suppliers must spell out that fee in writing, and you can escalate any dispute to the Energy Ombudsman.
- What to prepare before you ring – Have your business address, last bill, contract dates, MPAN/MPRN and a signed Letter of Authority ready so the broker can pull accurate, like-for-like quotes from suppliers.
What is a business energy broker?
There are two main types of energy brokers, which are residential energy brokers and business energy brokers. Residential brokers focus on energy usage in the home, while business energy brokers focus on optimal energy efficiency for businesses.
A business energy broker is an independent middle man who connects companies and organisation with energy suppliers. The broker finds energy contracts that offer the best deal and tariffs suited to the organisations unique operations and attitude to risk.
The suppliers the broker reviews for deals are from a selective list that the broker has rapport and good relations with. Brokers do more than just procuring the best energy deals, they also are responsible for closely monitoring accounts and keeping their clients abreast of when their contracts are about to expire. In the event of a transition to another supplier, they will also help ensure that the process goes smoothly.
How many Energy Brokers are there in the UK?
There are over 3,000 energy brokers and third-party intermediaries (TPIs) in the UK for the non-domestic market.
Even among the accredited brokers, not all of them are also energy consultants. Keep in mind that specialist brokerages like Professional Energy Services, which also act as consultants, will be able to devote more time and personalised attention to your business, as well as provide additional services.
What services do business energy brokers offer?
The best energy brokers will do more than just procure energy contracts. Brokers like Professional Energy Services will also offer the following services:
- Gathering of energy quotes —an energy broker will pull quotes from their preferred supplier list. This saves you the time and energy of having to gather this information on your own and allows you access to preferable deals that only a broker has access to due to their special relationships with their preferred suppliers.
- Management of supplier transitions—should you make the decision to transfer your business to another supplier, your energy broker will handle the transition for you and ensure all goes smoothly. They will handle the official date of the switch, and check to make sure all your business energy bills are accurate and up-to-date.
- Energy Metering & Installations – a broker will know your current metering situation across your sites and can support with transferring data from old redundant meters into new systems and upgrading any historical old non-half-hourly meters to HH meters.
- Market Intelligence – As the energy market is highly volatile, brokers key an eye on wholesale price movements and policy changes to stay well informed and advise on the risk of certain deals. These factors will influence the price on contracts as only 40% of your energy bill is made up of the rate you agree, and the rest is non-commodity charges such as distribution and transmission charges to receive the electricity.
- Ownership of contract renewal—as your contracts near their expiration, your energy broker will keep you informed, and may provide you with alternative suppliers to consider if there is a better deal.
- Energy management advice—though this service may overlap with an energy consultant’s job, brokers may also provide advice about energy efficiency and saving energy around the workplace, and analyse your energy usage to shed light on how you can optimise your consumption.
How Much do Energy Brokers Cost?
The cost of a business energy broker varies as they are remunerated on a commission basis for the total cost of energy you use. Every time you agree a supply contract, the broker earns a small fee that the supplier builds into either the unit rate (p/kWh) or the standing charge and pays out behind the scenes.
Energy broker Commission rates vary by firm, but unit rate commissions typically range from 0.05p to 5p per kilowatt-hour. At PES, we regularly perform market research to ensure our rates are competitive and below the market average.
A good broker will be transparent with their fees and protections for businesses have improved. Since 1st October 2024, Ofgem requires all non-domestic energy contracts to display any broker fee clearly.
This means you have the right to request the exact p/kWh or total £ fee in writing and to escalate to the Energy Ombudsman if it isn’t provided.
A small minority of rogue brokers still attempt add-ons or “consultancy” charges. Read the T&Cs carefully and insist that every cost, including commissions or other costs are broken down before you sign.
Why use an Energy Broker?
Businesses of any size can benefit from an energy broker finding them a deal. This is because of the unique energy contracts brokers can offer through their relationships with their preferred suppliers that business owners wouldn’t have access to by themselves. Also, finding an optimal energy deal for your business is challenging when you may not fully understand your own consumption, usage needs, and market trends.
Energy brokers provide expertise that a business owner may lack. By outsourcing the procurement process to a broker, the owner or procurement manager saves time by not having to search the market themselves or handle contract negotiations and administration with the selected supplier.
However, it is likely that the larger the business, the larger the share of revenue that goes to energy costs. Some firms spend over £20,000 a month on energy alone and a higher spend translates into bigger percentage savings, these companies will see a much greater return on investment when they use a broker.
In summary it is always worthwhile speaking to an energy broker if:
- You’re time poor and have other priorities than researching a new deal
- Your energy costs have suddenly increased
- Your current contract is about to expire
- Your current contract has expired and you’re on a out-of-contract tariff
Are there any license requirements, and are energy brokers regulated?
No, there are currently no license requirements like there are for energy suppliers, and energy brokers are not currently regulated. However, it is good practice for a broker to be accredited. Typically, accredited energy brokers will be listed by the Utilities Intermediaries Association (UIA).
Professional Energy Services is accredited and listed on the UIA website. We pride ourselves on transparency and will openly share our profit margins on the tariffs you select.
Because of the lack of accreditation of some brokers, and brokers being unregulated the market remains under the same jurisdiction as most trading standards issues. This results in the potential for some rogue brokers and different terms and conditions between brokerage firms. Make sure you double check all T&Cs in a contract before signing and ensure all fees are clear in a proposal you receive.
Attempts at regulations
There have been several attempts at regulations but unfortunately these schemes have since closed, not been approved or turned inactive. For example;
- OFGEM announced a change to the micro business sector, holding brokers accountable to a code of practice but the scheme has since closed.
- Ofgem created the TPI programme which sets up some regulatory framework for TPIs to follow, however these were voluntary and there was no reprimanding if TPIs failed to follow the guidelines, unfortunately the scheme is now inactive as.
However, on 8th July 2025, the Labour government announced there intention to fully regulate energy brokers and TPIs.
Energy Broker Register
There are regulations for energy suppliers from the energy ombudsman that suppliers must only partner with brokers that are on the energy broker register. Therefore, a broker must be successful in applying to be listed on the register to begin negotiating contracts with suppliers.
RECCO Rejection
Ofgem lead a consultancy into the efficacy of the direct regulation of the TPI market via retail energy code company (RECCO), but after a lengthy consultation, Ofgem rejected the proposal citing a lack of jurisdiction and market competition concerns due to a single privately owned entity overseeing a public market, and therefore government oversight is required.
The Department for Energy and Net Zero (DESNZ) have expressed an interest in regulating the TPI sector directly and are undergoing their own internal consultation to establish whether further legalisation is required.
Energy Brokers vs. Energy Consultants
If you’re looking into energy brokers, you may also stumble across services offered by energy consultants. Don’t confuse the two: a broker will negotiate with suppliers and lock down the best prices for you, while a consultant will consistently study your business’s energy trends, identify possible inefficiencies, make suggestions, and more. A consultant’s job is ongoing, and may include services such as;
- budgeting
- solar and energy efficiency analysis
- energy aggregating
- and even bill paying
With climate change becoming a high priority subject and strict global carbon reduction targets, more focus is being put on the business community to transition to net zero and their carbon management. Most businesses will be paying tax per carbon ton emitted in the near future and larger businesses already do. A consultant will help you navigate the complex world of sustainability and provide strategies, technologies, and behaviours to achieve net zero.
As a business owner or manager, you may find that once you’ve employed a broker’s services, you also feel like you could benefit from a consultant’s expertise, as well.
At Professional Energy Services, we are energy consultants but also able to provide a broker service.
How does an energy broker compare energy suppliers?
It is not standard practice for a broker to compare the costs of every supplier in the market. As mentioned, brokers will have a list of preferred suppliers they reference regularly. This list is based on the brokers own network and relationships, supplier stability and reputation. Because of the rapport and pre-existing relationship with their list of suppliers, brokers will have access to better deals that you would not see on a DIY energy comparison website.
Among the suppliers they analyse, energy brokers consider:
- Market trends
- Contract terms
- Price (per kilowatt-hour)
- Potential cost savings
- All non-commodity costs
- The volume and contract clauses associated
- The structure of the contract and what is included
What do you need to have ready so an energy broker can find you the best deal?
For a broker to begin the comparisons, you’ll need to provide the following:
- Your business address
- Your current supplier information with contract start and end dates
- A copy of a previous monthly invoice/energy bill
- Meter Point Administration Number for electricity/Meter Point Reference Number for gas (MPAN/MPAN number), or a site list with this information for multi-sites.
- A signed letter of authority on letter headed paper
These will help give your broker a frame of reference as they consider options for your business. If you are unable to find all this information a broker is able to find out a decent amount of details simply using your address but to get the most accurate deals it important for brokers to understand your current consumption.
Pros and Cons of Using a Business Energy Broker
If you find that you make better decisions by weighing the pros and cons, here are a few considerations of hiring a business energy broker.
Pros:
- Save time and money (which you can instead devote to your business)
- Improve your profit margin
- Benefit from the industry expertise of an insider
- Gain a better understanding of the energy market.
- Access your energy information
- Cut your consumption
- Understand how your energy costs are affected
- Bulk-buying leverage – brokers can basket tenders for multiple firms of similar size to unlock further discounts
- Transparency in pricing with reputable brokers who make it easy to understand cost savings and their broker fees
Cons:
- You are limited to comparison deals of the preferred suppliers of the broker.
- A lack of regulation, so be vigilant in the broker you select
- Will act on the information you offer, ensure you give as much business insight as possible, to not risk any missed opportunities
A transparent energy consultant and broker like Professional Energy Services will still be able to clearly demonstrate to you what you are saving on a new energy deal, including our broker fees.
Energy Broker Complaints Handling Procedure
If for whatever reason you feel you have been mis-sold an energy contract and your broker has not been honest or has misled you, there is a complaint handling process that you can follow. As of December 2024, the Energy Ombudsman will offer free dispute resolution support for small businesses. The small business criteria is:
A business with less than 50 employees or their full time equivalent, and an annual turnover of at most £6.5million or a balance sheet total of £5million
- Or an annual electricity consumption of no more than 200,000 kWh
- Or an annual gas consumption of no more than 500,000 kWH
If successful they can help to tell brokers to take action to fix the problem, make payments of up to £10,000 and help implement recommendations to avoid similar complaints. However, the Ombudsman cannot dictate how brokers work and again it is strongly recommended you read all T&Cs before agreeing a contract and ask for clear pricing structures.
We strongly recommend that before making a complaint and seeking the support of the Ombudsman, the best option is to first reach out to your broker and explain your grievances and give them an opportunity to resolve the issue themselves.
What to look for when selecting an Energy Broker?
When selecting an energy broker, you want to ensure they are trustworthy and reputable. We suggest you do the following checks before reaching out:
Customer Reviews
Check the broker for reviews to see what others businesses think of them, most businesses will have a ‘google my business’ page with reviews or a TrustPilot score, have a look at what others are saying and look for an overall positive record.
Consumer Watchdogs
Unfortunately rogue brokers do exist, and there are no regulations to hold them accountable. Make sure you select a trustworthy broker by not only checking their reviews but going one step further and researching if there have been any significant complaints or public concerns covered by consumer watchdogs. Do your due diligence and perform a web search on their brand name with additional terms like ‘watchdog’ or ‘customer complaints’ to investigate if there are any serious warnings of customers being misled.
Transparency
Always check the terms and conditions of an energy broker for the breakdown on how they charge for their services or reimburse themselves. If you are already speaking to a potential broker ask for clarity on their fees before signing any agreements or contracts. As mentioned, Ofgem now requires energy contracts to display broker fees clearly.
Range of Services
Some energy brokers will just procure a new contract for you and their service stops there. Consider selecting a broker with a range of services like we mentioned earlier. A brokerage firm who are also qualified energy consultants will provide you with greater value as you gain access to their expertise in helping you across a range of energy management services.
Customer Sucess
A decent broker will be well experienced and have many customer success stories. Look for a broker that has proven credible case studies that evidence how much they have saved for their clients.
Knowledge
A worthwhile energy broker will be knowledgeable and able to easily demonstrate their expertise in the energy market. Review their website for blogs and energy market intelligence services as well as regular market updates.
Range of Suppliers
As mentioned, brokers all have their own range of energy suppliers. Review theirs to ensure the list is varied and comprehensive. A small range won’t result in much of a comparison of the market to find you the best deal, despite the exclusive rates the broker will have access to.
See Professional Energy Services’ range of energy suppliers here.
Continued Support
A decent broker will keep in touch with you throughout the duration of a newly selected energy contract to help prepare you for when this new contract expires and a further future contract needs to be selected.
In addition, as most businesses start looking for a broker well in advance of their current contract expiring, you want to make sure that your chosen broker is available to support you even before your newly selected contract begins. Your current deal might expire in 6 months or more and if you used a broker to help you find the replacement deal, a good broker will stay in touch before your newly earmarked deal begins. There may be changes in your consumption or the market that could mean an alternative contract might be better than the one you previously selected.
