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Brokers

How energy brokers are paid, explained openly

By the Business Savings Guru team. Last updated 28 October 2026.

On this page
  1. The short answer
  2. How do energy brokers usually get paid?
  3. Is a broker who says the service is free really free?
  4. When is commission paid?
  5. What does Ofgem require?
  6. Are energy brokers going to be regulated directly?
  7. What should we ask a broker before signing?
  8. How Business Savings Guru helps
  9. Frequently asked questions
  10. Sources

The short answer

Most UK business energy brokers are paid a commission by the supplier, which is added to your unit rate (in pence per kWh) or standing charge, so you pay it through your energy bill rather than as a separate invoice. Some brokers charge a fixed fee or a share of savings instead. Since 1 October 2024, Ofgem has required suppliers to show broker fees clearly in the principal terms of all non-domestic contracts, so you can always see what your broker is paid.

How do energy brokers usually get paid?

There are three common models:

  • Commission through your rates. The supplier adds an amount, quoted in pence per kWh or pounds per day, to your unit rate or standing charge and pays it to the broker. You pay it on every unit you use for the life of the contract.
  • Fixed or consultancy fee. You pay the broker directly, for example a monthly or annual fee, and the supplier's rates carry no broker uplift.
  • Share of savings. The broker takes a percentage of the saving it achieves against an agreed baseline. If you use this model, agree in writing exactly what the baseline is.

Is a broker who says the service is free really free?

No. If you do not pay the broker directly, the broker is almost always paid through your energy rates. That is a legitimate model, but it is not free. Ask any broker how much they will be paid, in pence per kWh or pounds per year, before you agree a contract.

When is commission paid?

Arrangements vary by supplier and broker. Some brokers are paid as you use energy across the contract. Others receive some or all of the commission upfront when the contract starts, based on your expected consumption, and may have to repay part of it if the contract ends early or your consumption is lower than forecast. The payment timing does not change what you pay, which is set by the uplift in your rates, but it is reasonable to ask how your broker is paid and whether that affects the advice you get.

What does Ofgem require?

Ofgem regulates energy suppliers rather than brokers, so the rules work through suppliers:

  • Broker fees in principal terms. For contracts signed from 1 October 2024, suppliers must show broker fees clearly in the principal terms for all non-domestic customers, and provide this information on request. Before that date, the requirement applied to microbusinesses. If you pay your broker directly, the supplier does not have to declare that fee.
  • Redress schemes. Suppliers may only work with brokers who belong to a qualifying dispute resolution scheme when securing contracts for small businesses. This means microbusinesses and small businesses have access to independent dispute resolution about their broker. When Ofgem announced the change, two schemes were operating: the Energy Ombudsman and the Utilities Intermediaries Association (UIA).
  • Fair treatment. Ofgem's Standards of Conduct, which require suppliers to treat customers fairly, have applied to businesses of all sizes since 1 July 2024.

For these rules, Ofgem defines a microbusiness as using no more than 100,000 kWh of electricity or 293,000 kWh of gas a year, or having fewer than 10 employees (full-time equivalent) and turnover or a balance sheet of no more than £2 million. Since 19 December 2024, Ofgem's small business definition covers a business that meets any one of these tests: fewer than 50 employees (full-time equivalent) with turnover of up to £6.5 million or a balance sheet of up to £5 million; up to 200,000 kWh of electricity a year; or up to 500,000 kWh of gas a year. Many multi-site groups are larger than this, so the broker dispute schemes may not cover them. Our complaints policy sets out how we handle complaints.

Are energy brokers going to be regulated directly?

Yes, in time. In October 2025 the government confirmed it will regulate third-party intermediaries, including energy brokers, directly, with Ofgem as the regulator. This needs primary legislation, which will be brought forward when parliamentary time allows, so there is no fixed start date yet. Until then, brokers are not directly regulated by Ofgem.

What should we ask a broker before signing?

  • How much will you be paid on this contract, in pence per kWh and in pounds over the term?
  • Is that the same for every supplier you are quoting, or does it vary?
  • How many suppliers did you approach, and which declined to quote?
  • Which dispute resolution scheme are you a member of?
  • Will the fee appear in the supplier's principal terms?
  • What do you do for us during the contract, not just at signing?

A good broker will answer all of these in writing without hesitation.

How Business Savings Guru helps

At Business Savings Guru, we believe customers should understand how their energy broker is paid. Our commission is clearly disclosed on the energy contract you sign, so you know how BSG is remunerated before you commit. We are a member of the Energy Ombudsman (membership number C35ENER126), so if you are ever unhappy with our service and we cannot resolve it, you can go to them for an independent decision.

Frequently asked questions

Do I pay my energy broker directly? Usually not. Most brokers are paid by the supplier through an uplift on your rates. Some charge a fixed fee instead, which you pay directly.

Where can I see how much my broker is paid? In the principal terms of your contract, for contracts signed from 1 October 2024. You can also ask your supplier, who must provide it on request.

Is broker commission the same on every supplier? Not necessarily. Ask your broker to confirm whether their fee varies by supplier, because a varying fee can influence which quote is recommended.

What can I do if I have a complaint about my broker? Raise it with the broker first. If it is not resolved and you are a micro or small business, you can take it to the broker's dispute resolution scheme. Ask the broker or your supplier which scheme that is.

Can Ofgem make a broker refund undisclosed commission? Ofgem says it does not regulate brokers and cannot require them to repay commission. It warns businesses to be wary of anyone claiming otherwise.

Sources