Energy brokers for business: what they do and how they're paid

What does an energy broker do?

A broker sits between your business and the energy suppliers, and a good one spares you the time of going to each supplier yourself. Most brokers:

• get quotes from several suppliers, based on your use and your contract end date;
• negotiate with the supplier you choose and arrange the contract;
• handle the paperwork, and often remind you when your contract is coming up for renewal.

Brokers don't supply energy themselves. Your contract is with the supplier, who bills you and who you pay.

You'll also come across energy consultants, energy procurement specialists and third-party intermediaries. Their roles overlap, since all of them help businesses find and arrange energy contracts. Larger businesses may also use a broker to manage how they buy energy, for example buying it in stages rather than fixing it all at once.

You don't have to use a broker, though. You can go to suppliers directly and arrange the switch yourself.

How are energy brokers paid?

According to Ofgem, most brokers earn a commission from the supplier you choose, while some charge a fee upfront instead.

How brokers are paid

This means that even when a broker charges you nothing directly, its commission is usually part of what you pay.

The rules on broker fees and redress schemes

• Fees in the main terms. Microbusiness contracts have had to show broker costs in the main terms since 1 October 2022, and suppliers must clearly show any broker fees they pay in the main terms of every business energy contract signed since 1 October 2024. They must also tell you the fees if you ask. A fee you pay a broker directly doesn't have to appear in the supplier's terms.
• Redress schemes. Suppliers may only work with brokers that belong to a qualifying redress scheme: for microbusiness contracts since 1 December 2022, and for small business contracts since 19 December 2024. Ofgem doesn't approve these schemes itself.

A higher commission means higher prices for the whole contract, so it's worth asking how much your broker is paid, and how, before you agree. Knowing what businesses pay on average also helps you judge whether a quote looks high.

Are energy brokers regulated?

Not directly, or at least not yet. In October 2025, the government said it would make Ofgem the regulator for energy brokers, and that brokers would have to register before they could operate. That needs a new law, though, and no start date has been set. Ofgem began reviewing the broker market in June 2026.

Until then, your protection comes from the rules on suppliers set out above, and from the redress schemes. Two things to bear in mind:

• Complaints. If something goes wrong, complain to the broker first. If that doesn't resolve it, microbusinesses and small businesses can take a dispute about a broker to the broker's redress scheme, such as the Energy Ombudsman, the Utilities Intermediaries Association or the Dispute Resolution Ombudsman. Our guide to mis-sold business energy contracts explains the steps.
• No cooling-off. Most business energy contracts can't be cancelled once you've agreed to them, so take your time before you do.

Questions to ask a broker

• Which redress scheme are you in? Then check the answer against the Energy Ombudsman broker register, the Utilities Intermediaries Association's list or the Dispute Resolution Ombudsman.
• How are you paid, and how much? Is it built into my unit rate or my standing charge, or is it a fee?
• How many suppliers do you compare? Some brokers cover most of the market, while others use a small panel.
• Can I have the quotes and the contract terms in writing before I agree?
• Who do I deal with during the contract if there's a problem with a bill?

If a broker asks you to sign a letter of authority, read what it covers first. It usually lets the broker get your details from your supplier, but check whether it also lets the broker agree a contract for you.

Warning signs

• Pressure to agree on the first call, or a "price only available today".
• Vague answers about how the broker is paid.
• Claims to be "approved" or "regulated by Ofgem". Ofgem doesn't approve or regulate brokers yet.
• A contract you haven't seen in writing.

How Energybench works

Energybench doesn't arrange energy contracts itself. Our free check compares your rates, standing charges and contract terms with today's market, and a specialist from Assured Energy, our energy procurement partner, rings to talk you through it. If you choose to switch through Assured Energy, any commission it earns from your new supplier is included in your contract's prices and shown in its main terms, and Assured Energy pays our fee from it. You never pay Energybench anything directly. As with any broker, you can ask Assured Energy how it's paid, and how much, before you agree.