How UK business energy brokers are paid — commission, transparency and what to ask
Ofgem now requires brokers to disclose commission clearly. Here's how the model works, why it usually still beats direct-to-supplier, and what to ask before you sign.
The commission model
The vast majority of UK business energy brokers are paid by the supplier, not by you. When a supplier prices a contract, they build in an agreed commission (called uplift) — usually a small pence-per-kWh figure added to the unit rate. That uplift funds the broker's work: tendering, contract admin, renewals and ongoing support.
What Ofgem's rules require
Ofgem's expanded standards of conduct for the non-domestic market require suppliers and brokers to disclose the total broker commission clearly before a contract is signed, and to make redress available through the Energy Ombudsman for micro-business customers. In practice this means every reputable broker now shows uplift in p/kWh on the quote itself.
Why it usually still beats going direct
Suppliers price direct quotes on a similar cost-plus basis — the internal sales team is not free either. What a good broker adds is genuine tender competition across a panel, which typically more than offsets the visible uplift. The right comparison is broker-with-competition versus a single direct quote you can't benchmark.
Questions to ask
Ask for the commission in p/kWh (not a percentage), for the full quote comparison (not just the recommended one), for the contract length options at different uplift levels, and for confirmation of Ombudsman coverage if you're a micro-business. A broker who won't answer any of these is not a broker you want handling a multi-year contract.
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