What is an energy broker? 

Energy Brokers are a third-party intermediary between a business and energy suppliers. Energy brokers help businesses secure the best possible prices for their energy bills. The energy broker will set up a contract between your business and the chosen energy supplier. 

What do energy brokers do? 

Energy brokers assess your businesses’ energy requirements (e.g. energy consumption, start date, etc.) and use this information to navigate the energy market and secure the lowest prices. Energy brokers can access cheaper rates than if you were to go to the supplier directly. A good energy broker will have developed excellent relationships with their suppliers. In return for gathering a large volume of customers for the energy supplier, the energy supplier will provide cheaper prices. 

How do energy brokers earn commission? 

Energy brokers will add an uplift to the supplier’s price. For example, if a supplier had quoted an electricity price of 26p / kWh, the energy broker could then add an extra 0.5p / kWh, making the total price 26.5p / kWh. 

The customer usually pays their bills, and the energy supplier is responsible for paying the energy broker. 

Previously, there were no laws surrounding energy brokers not disclosing their uplifts to customers, so many immoral brokers were mis-selling overly expensive energy contracts. OFGEM had to get involved in 2024 and made it a legal requirement for brokers to disclose their uplifts to customers. 

If you think you have been mis-sold an energy contract and need help determining your next steps, contact us. We will be happy to assist you.