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.
Energy Commission Calculator
Broker commission calculator
How much is your broker really earning?
Why use an energy broker?
Some energy brokers provide services other than securing cheaper energy prices, which could be very handy for your business.
- Expert Advice – Get professional guidance to decide which energy contract best suits your business's needs.
- Time Savings – Save time navigating the energy market and contacting suppliers. Let us do all the hard work for you.
- Competitive rates – Unlock the most competitive rates on the market.
- Help with switching – Get help switching suppliers and dealing with any objections or issues which may prolong the process
- Account monitoring— Stay on top of your energy contracts. We will manage your contracts for you and let you know when one is due for renewal, so you don't find yourself stuck with expensive out-of-contract rates.
- Energy Software Management – Purely Energy has released our new energy management software –Purely Insights.Get real-time data on your energy consumption.
How do I know which broker is right for me?
Some energy brokers can be dodgy! Hidden fees and commissions can leave you paying more than you thought you agreed to. Here are some key things to look for in a broker;
- Check their credentials. Accreditation by a relevant government agency or industry association is now a requirement for all energy brokers.
- Do they have a good reputation? Make sure the energy broker has good reviews, e.g. onTrustpilot.
- Ask about fees and charges. A good broker will always be open and honest about any fees or charges for their service.
- Check if they offer any other services. Some other brokers, such asPurely Insight, offer additional services in addition to securing good energy prices.
How much do UK energy brokers actually charge in 2026?
Most UK business energy brokers earn between 0.5 and 1.5 pence per kWh as an uplift on the supplier's underlying rate. Aggressive brokers stack 2 to 5 p/kWh, and recent UK court cases have surfaced examples reaching 10 p/kWh, more than the wholesale gas price itself.
To put that in context, UK day-ahead wholesale power has been trading around 8 p/kWh through 2026. You can see today's number on our live wholesale prices page. A 1.5 p/kWh uplift is therefore adding roughly 19% on top of the underlying commodity price, every kilowatt-hour, for the entire contract.
| Business size | Annual electricity | Typical uplift | 3-year hidden commission |
|---|---|---|---|
| Microbusiness | 25,000 kWh | 1.0 to 2.5 p/kWh | £750 to £1,875 |
| SME | 100,000 kWh | 0.5 to 1.5 p/kWh | £1,500 to £4,500 |
| Mid-market | 500,000 kWh | 0.3 to 1.0 p/kWh | £4,500 to £15,000 |
| Industrial & Commercial | 5,000,000 kWh | 0.1 to 0.5 p/kWh | £15,000 to £75,000 |
Use the calculator above to plug in your own consumption and your broker's claimed (or suspected) uplift.
How brokers actually charge: four fee structures
- Unit-rate uplift (p/kWh). By far the most common model. The broker negotiates a wholesale-plus rate with the supplier, then asks the supplier to add their commission on top of every kWh you consume. From October 2024, Ofgem requires this uplift to be disclosed in the principal terms of every non-domestic contract.
- Standing-charge uplift (p/day). Less common but rising. Inflating the daily standing charge from, say, 40p to £1 looks innocuous but can add over £600 to a 3-year bill at zero visibility on the unit rate.
- Retainer or management fee. A visible, agreed monthly or annual fee paid by you directly to the broker. Common on Industrial & Commercial portfolios where the broker provides bureau, monitoring and risk management. Usually paired with zero or near-zero p/kWh uplift.
- One-off introducer fee. A flat amount paid by the supplier to the broker on contract sign, typically £150 to £500. Common for microbusiness deals where the unit-rate model does not pay enough.
What changed in 2024 to 2026: the regulatory wave
The UK energy broker market is mid-transformation from a self-regulated cottage industry into a fully Ofgem-authorised intermediary regime. The dates that matter:
- 1 October 2024 (live). Ofgem's TPI disclosure rules take effect across all non-domestic contracts, not just microbusiness. Suppliers must show the broker uplift in principal terms; brokers must give a written commission statement.
- 19 December 2024. The Energy Ombudsman extends scope from microbusiness to "Small Business": fewer than 50 FTE, turnover under £6.5m, or under 200,000 kWh electricity / 500,000 kWh gas. Suppliers can only work with brokers that belong to a redress scheme.
- March 2025. The Court of Appeal hands down Expert Tooling and Automation Ltd v Engie Power Ltd [2025] EWCA Civ 292, holding that half-secret commissions can constitute breach of fiduciary duty.
- 23 October 2025. DESNZ confirms Ofgem as the future TPI regulator under a hybrid authorisation model with a "fit and proper person" test.
- January 2026. The Supreme Court allows the appeal in Expert Tooling, applying Hopcraft (motor finance) reasoning. Judgment stands for the customer; suppliers and brokers face material litigation risk on undisclosed unit-rate uplifts.
- H1 2026. Ofgem opens its TPI market survey ahead of formal authorisation.
- 2027 to 2028. Anticipated full TPI authorisation regime with Ofgem enforcement powers.
What to do if you suspect hidden commission, the complaints procedure
If you cannot get a straight answer on what your broker has been earning, you may have grounds to complain and recover the hidden margin. The five-step procedure:
- Ask your broker, in writing. Request the Letter of Authority, the supplier's commission confirmation and the p/kWh uplift on every contract they have placed for you. They have eight weeks to respond.
- Escalate to the supplier. Suppliers know exactly what commission they have paid. Ofgem now requires them to provide it on request.
- Raise a formal complaint with the broker. Use their published complaints procedure. Keep a paper trail.
- Refer to the Energy Ombudsman or Ofgem's business consumer route. The Ombudsman covers microbusinesses and the new Small Business tier; larger businesses pursue civil recovery.
- Recover the overpayment. Following the Expert Tooling line of authority, undisclosed or "half-secret" commissions are recoverable as breach of fiduciary duty, typically with interest. Citizens Advice publishes guidance on the process.
If you do not know what you have been charged, that is itself a red flag. Use the calculator above (the I don't know tab) and we will walk you through it free of charge.
Frequently asked questions
How much commission does a UK energy broker earn?+
Most UK business energy brokers add 0.5 to 1.5 pence per kWh to the supplier's rate. The full market range is 0.05 to 5 p/kWh, with court-evidenced extremes reaching 10 p/kWh. On a 100,000 kWh per year SME contract, a 1 p/kWh uplift is £1,000 every year, or £3,000 over a typical 3-year deal.
Are UK energy brokers regulated?+
Not yet, but the rules are tightening fast. Since October 2024, Ofgem requires brokers to disclose their commission in principal terms and belong to a redress scheme. In October 2025 DESNZ confirmed Ofgem as the future TPI regulator, with formal authorisation expected by 2027 to 2028.
Can I see how much commission my broker is earning?+
Yes. From October 2024, every non-domestic energy contract must show the broker uplift in pounds and pence per kWh in the principal terms. If your broker has not provided this, you can request it in writing and the supplier is also obliged to disclose what they have paid.
Can I claim back hidden energy broker commission?+
Possibly. Following the Court of Appeal and Supreme Court rulings in Expert Tooling and Automation Ltd v Engie Power Ltd (2025 to 2026), undisclosed or "half-secret" commissions can be recoverable as breach of fiduciary duty. Microbusinesses and small businesses can use the Energy Ombudsman; larger businesses pursue civil recovery.
What is energy broker uplift?+
"Uplift" is the amount, in pence per kilowatt-hour, that an energy broker adds to the supplier's underlying rate. The supplier collects the uplift in your unit price every month and pays the broker. A 1 p/kWh uplift on a 200,000 kWh per year business is £2,000 per year of broker commission, paid by you, even though it never appears as a separate line on your bill.
Are energy brokers FCA regulated?+
No. UK business energy brokers are not regulated by the Financial Conduct Authority. From 2027 to 2028 they will be authorised by Ofgem under the new TPI regime confirmed by DESNZ in October 2025.
Where to find a trustworthy broker
Look for accreditation by the Utility Intermediaries Association (UIA), sign-up to the TPI Assurance & Accreditation scheme, and membership of an Energy Ombudsman redress scheme. The Citizens Advice non-domestic supplier league tracks complaint volumes and is the closest thing to a public ranking. Avoid any broker that:
- Will not state their commission in pence per kWh before you sign
- Cannot produce a Letter of Authority audit trail
- Pressures you to sign on a phone call or in a single meeting
- Cold-calls you with a "supplier deadline" that lapses if you delay
Purely Energy is a B-Corp certified broker. We disclose our commission on every quote, in pounds and in pence per kWh, before you sign anything. Compare that figure with the calculator above.
How can Purely Energy help?
If you think you have been mis-sold a contract or would like help securing the best rates on the market with an energy broker you can trust, then contact us.
If you have any queries about how commission works for energy brokers or would like help lowering your energy costs, contact us at 0161 521 3400 or email us at Info@purelyenergy.co.uk. Alternatively, get aquick quote.
This Article was written by Megan Glover of Purely Energy. If there are any suggestions or questions - Please get in touch with us.
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How we produced this article
This article was human-written by Megan Glover on 31 January 2025.
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