What is a business energy broker?
Business energy brokers arrange your gas and electricity contract for you, instead of you going direct to a supplier. A broker sits between your business and the energy companies, gathers quotes, and handles the paperwork to get you signed up.
For a busy small business, that can be a real help. Energy is rarely anyone’s main job. And business energy works nothing like a home tariff: there’s no price cap protecting you, contracts are fixed for a set term, and the rate you’re offered depends on when you sign and how much you use. A good broker does the legwork and lines up deals you might not have found on your own.
The catch is that not all business energy brokers are equal, and how they’re paid hasn’t always been clear. That’s exactly what’s about to change.
Why business energy brokers are about to change
Business energy brokers are heading for regulation for the first time. In October 2025 the government confirmed plans to bring energy brokers and price comparison sites, known as third party intermediaries, under Ofgem oversight.
The reason is years of complaints. Ofgem and the government found a persistent pattern of hidden commission, unclear fees and pushy sales tactics, falling hardest on small businesses and charities that don’t have a procurement team to check the small print. The scale of the problem shows in one number: of the 2,700 or so brokers operating in the UK, only 52 ever signed the industry’s voluntary code of practice. That’s about 2%.
Here’s the timeline as it stands, checked July 2026:
| When | What happens |
|---|---|
| October 2024 | Commission disclosure to micro businesses became mandatory |
| October 2025 | Government confirmed brokers and comparison sites come under Ofgem |
| First half of 2026 | Ofgem market survey under way now, shaping the detailed rules |
| 2027 | Broker registration expected to open, subject to parliamentary timing |
| Sunrise period | Existing brokers get 12 to 18 months to register |
| From around 2028 | Full enforcement: operating without Ofgem authorisation becomes illegal |
You can read the detail in Ofgem’s business protection proposals. Suppliers will also be required to show any broker fee separately from the cost of your energy, which is the single biggest transparency win in the package.
Not everyone agrees on how far the rules should go. Some broker trade bodies have warned that heavy handed regulation could squeeze smaller, honest brokers out of the market and leave businesses with less choice. Ofgem’s stated aim is the opposite: clearer fees, fairer comparisons, and brokers held to account when they get it wrong. For most businesses, the direction of travel is welcome.
How do business energy brokers get paid?
Most business energy brokers are paid through commission added to your unit rate, not a separate invoice. A small amount per unit of energy you use is built into the price the supplier quotes, and the supplier passes that on to the broker.
There’s nothing wrong with a broker being paid for their work. The trouble starts when you can’t see how much that commission is, or when it quietly inflates a rate that looks competitive at first glance. Over a long contract, even a small uplift per unit can add up, depending on how much energy your business gets through.
Rules introduced in October 2024 already require commission to be disclosed to micro businesses, and the incoming Ofgem regime is set to widen and tighten that. A micro business is broadly one with fewer than 10 staff and turnover under around £2 million, or fairly low energy use. If you qualify, you have the right to ask what the broker is making on your deal. Our guide to business energy contracts explains how these rates and terms fit together.
How to choose a business energy broker you can trust
Picking the right broker comes down to transparency and fit. The best ones are happy to show you their commission, explain the deals in plain English, and let you walk away with no pressure.
What to check before you sign with a broker
- Ask for the commission in writing, as a figure or a clear amount per unit.
- Get more than one quote so you can compare like for like.
- Check whether they search the whole market or only a small panel of suppliers.
- Confirm the contract length, the start date and any exit terms.
- Keep a record of everything you’re told and promised.
It also helps to know what your business actually needs before you talk to anyone. If you run several premises, our guide to multi site energy contracts is worth a read first, and if the jargon is getting in the way, understanding UK energy tariffs will clear a lot of it up.
Should you use a broker or compare yourself?
You don’t have to use a business energy broker at all. If your usage is straightforward and you have a little time, comparing prices yourself works perfectly well and means no commission sits on top of your rate. You can compare business energy prices in a few minutes and see the market for yourself.
A broker earns their keep when your setup is more complex, when you’re short on time, or when you want someone to handle a renewal across several sites. The trick is to go in with your eyes open, knowing how they’re paid and what you’re getting for it. Whichever route you choose, the worst outcome is letting your contract roll on to deemed rates, the expensive default suppliers apply when nothing else has been agreed. Those rates can run well above a negotiated deal, so timing your renewal matters.
Frequently asked questions about business energy brokers
- Are business energy brokers worth it?
- They can be, especially if your energy setup is complex or you’re short on time. The real test is whether the deal they find, once their commission is included, beats what you could arrange yourself.
- Do business energy brokers charge a fee?
- Most are paid through commission built into your unit rate rather than a separate bill, so you often won’t see a direct charge. That’s exactly why it pays to ask what they’re making on your contract.
- Will Ofgem regulation make brokers cheaper?
- The new rules are aimed at transparency rather than setting prices. Clearer commission and fairer comparisons should make a good deal easier to spot, but no specific saving is guaranteed.
- Can I leave a deal a broker arranged early?
- Business energy contracts are usually fixed for the term you signed, so leaving early can mean charges. Always check the exit terms before you agree to anything.
- How do I know if a broker is regulated?
- Until the new Ofgem regime is fully in force, brokers aren’t yet formally authorised. Registration is expected to open in 2027 with full enforcement from around 2028. For now, ask about their commission and complaints process, and keep your paperwork in case you need to escalate.
