Energy Broker Commission - Explained

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's changed for broker commission in 2026?

Brokers still aren't regulated by Ofgem, but the pressure on them has grown. In March 2026, as wholesale prices spiked, the government wrote to brokers and other TPIs across Great Britain asking them to check that "commissions are not structured in a way that creates a financial incentive to favour higher cost contracts". A bill to make Ofgem the regulator was announced in May 2026 and hasn't become law. Ofgem opened its own review of the broker market in June, with a final report due this winter.

Until a new regime arrives, your protection comes through the supplier. Your broker's fee must be shown in your contract's principal terms, and if you're a small business, the supplier can only use a broker who belongs to a redress scheme. You can see what an uplift costs you over a whole contract with our broker commission calculator.

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 e nergy contracts. Ofgem changed the supplier licence rules in 2024, so suppliers must now show the broker's fee in the principal terms of every business contract.

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

Are Energy Brokers Regulated?

Energy brokers are still not directly regulated by Ofgem. The rules that bind them come through supplier licences, and the government has confirmed that Ofgem will become the regulator once new legislation is passed.

1 October 2024 - Broker commission must be disclosed in the principal terms of every non-domestic contract, shown in p/kWh, and provided on request.

19 December 2024 - Suppliers may only work with brokers registered with a redress scheme (e.g. the Energy Ombudsman) for Small Business contracts; small businesses (under 50 employees) gain access to the Ombudsman for broker disputes.

21 March 2025. The Court of Appeal hands down Expert Tooling and Automation Ltd v Engie Power Ltd [[2025] EWCA Civ 292, holding that a broker's half-secret commission can be a breach of fiduciary duty, but that the supplier paying it is only liable if it acted dishonestly. Tooling was later given permission to take the case to the Supreme Court.

23 October 2025 - Government confirms Ofgem will be appointed the direct regulator of energy brokers, with powers to set rules, order redress, fine, and exclude firms.

4 June 2026 - Ofgem opens a market review of brokers and other TPIs. The call for input closed in July and the final report is due in winter 2026/27.

No date yet - once legislation passes, existing brokers get a 12 to 18 month sunrise period, after which unauthorised brokers must stop trading. The Energy Independence Bill, announced on 13 May 2026, is expected to do this but has not become law.

Harvey Rowlinson, Managing Director of Purely Energy states:

We welcome this regulation and belive it is long overdue. We have operated on full commission transparency since day one, and a properly regulated market will help brokers doing things right grow.

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 - our published case studies show savings of £595 to £67,625 a year.
• 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. Broker accreditation is currently voluntary, because third-party intermediaries are not yet regulated. The government intends to appoint Ofgem as the TPI regulator, with an authorisation regime to follow legislation. Membership of a body such as the Utilities Intermediaries Association is a useful signal, but it is not a licence.
• Do they have a good reputation? Make sure the energy broker has good reviews, e.g. on Trustpilot.
• 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 as Purely 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 averaged 14.6 p/kWh in October 2026, up from about 7.8 p/kWh in February. You can see today's number on our live wholesale prices page. At October's level, a 1.5 p/kWh uplift adds roughly 10% on top of the underlying commodity price, every kilowatt-hour, for the entire contract.

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

1. 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.
2. 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.
3. 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.
4. 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's fee in the principal terms and give the information on request.
• 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.
• 21 March 2025. The Court of Appeal hands down Expert Tooling and Automation Ltd v Engie Power Ltd [[2025] EWCA Civ 292, holding that a broker's half-secret commission can be a breach of fiduciary duty, but that the supplier paying it is only liable if it acted dishonestly.
• 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 by agreement between the parties, following its Hopcraft (motor finance) judgment, and gives judgment for the customer. Suppliers and brokers face material litigation risk on undisclosed unit-rate uplifts.
• June 2026. Ofgem opens a market review of TPIs, with a final report due in winter 2026/27.
• Not yet scheduled. A full Ofgem authorisation regime needs new legislation. The Energy Independence Bill was announced on 13 May 2026 but has not become law.

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:

1. 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.
2. Escalate to the supplier. Suppliers know exactly what commission they have paid. Ofgem now requires them to provide it on request.
3. Raise a formal complaint with the broker. Use their published complaints procedure. Keep a paper trail.
4. Refer to the broker's redress scheme, such as the Energy Ombudsman. The Ombudsman covers microbusinesses and the new Small Business tier; larger businesses pursue civil recovery.
5. 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

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 want help with your rates from a broker rated 4.8 on Trustpilot from 132 reviews, 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 an online quote from 18 suppliers.

This Article was written by Megan Glover of Purely Energy. If there are any suggestions or questions - Please get in touch with us.