Brokers and procurement
How are business energy brokers paid?
How can we find out what our broker is being paid?
A broker may charge a direct fee, receive commission through the energy contract, or use a combination. An embedded commission is normally recovered by the supplier through the contracted energy price. The important comparison is the total broker remuneration and total contract cost—not merely whether an invoice comes directly from the broker.
Written by Energy Guide editorial team · Specialist review: Pending · Source checked:
Direct fees and embedded commission
A direct fee is paid separately by the customer. Embedded commission is incorporated into the energy contract and paid by the supplier to the broker. That does not make the service free: the customer ultimately funds the amount through the contract.
Commission can be expressed in pence per kWh, as a fixed amount or through another agreed calculation. A small-looking unit addition can become significant across several sites, high consumption or a long contract.
Information to request
Ask for the broker's total expected remuneration over the whole contract, the calculation method and whether any other party receives a payment.
- Total commission or fee over the contract term
- The pence-per-kWh addition, where applicable
- Whether the amount changes with consumption
- Whether the broker receives other incentives
- Whether ongoing services are included
Compare value as well as price
A paid broker service can be valuable. Transparency does not mean that commission is inherently wrong; it means the buyer can judge the cost against supplier access, negotiation, administration, data, bill validation and ongoing support.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.