A business energy broker is a company that compares electricity and gas prices from different suppliers for your business, then arranges the contract for you. Instead of calling several suppliers yourself, you share your details once and the broker comes back with options.
Below we explain how brokers work, how they are paid, the rules that protect you and how to pick a good one.
What a business energy broker does
A good broker will usually:
- Collect your usage, meter details and contract end date.
- Request quotes from a panel of suppliers.
- Explain the differences between fixed and flexible deals and contract lengths.
- Recommend options that suit your budget and risk.
- Handle the paperwork and the switch once you choose.
- Remind you before your next renewal so you never fall onto out of contract rates.
Some brokers also help with meter changes, billing problems, multiple sites and energy saving advice.
How business energy brokers are paid
Most brokers do not charge you directly. Instead, the supplier pays them a commission, which is normally built into the unit rate or standing charge you pay. Some brokers charge a fixed fee instead.
There is nothing wrong with a broker being paid, as long as it is clear. Ofgem rules now require suppliers to show broker fees clearly in the contract for all business customers, so you can see exactly what is included in your price. If a broker will not tell you how they are paid, treat that as a warning sign.
The rules that protect you
Ofgem strengthened protections for businesses in 2024:
| Rule | What it means for you |
|---|---|
| Broker fees shown in contracts | Suppliers must show broker fees clearly for contracts signed from 1 October 2024. |
| Access to redress | Micro and small businesses can take disputes about brokers to a redress scheme such as the Energy Ombudsman. |
| Brokers must be in a redress scheme | Suppliers should only work with brokers that belong to a redress scheme when securing small business contracts. |
| Fair treatment standards | Suppliers must treat all business customers fairly, under Ofgem’s standards of conduct. |
Pros and cons of using a broker
| Pros | Cons |
|---|---|
| Saves time compared with calling suppliers yourself | Their commission is included in the price you pay |
| Access to quotes from several suppliers at once | Panels vary, so no broker covers every supplier |
| Help understanding contracts and timing | Some brokers use pressure sales tactics |
| Renewal reminders so you avoid default rates | Quality varies a lot between brokers |
How to choose a good business energy broker
Ask these questions before you agree to anything:
- How are you paid, and how much? A good broker answers clearly.
- Which suppliers do you work with? A wider panel usually means more choice.
- Are you a member of a redress scheme? This protects you if things go wrong.
- Can I see the contract before I sign? You should never be pushed to agree on the call.
- Will you remind me before my next renewal? This is where much of the value lies.
Broker or switch direct?
If you have one small site and plenty of time, you can approach suppliers directly. If you would rather have someone compare the market and handle the switch, a broker can save you time. Either way, compare the total annual cost of each quote, not just the unit rate. Our guide to business energy comparison rates shows you how.
How EnergyJump fits in
EnergyJump is a free introduction service, not a broker. When you ask for a quote, we pass your details to one carefully selected UK business energy broker, rather than to a long list of companies. They compare business electricity and business gas prices for you, and you are free to say no.
Ready to see what you could save? Get a free quote in about a minute.