Brokers and procurement
How to choose and check a business energy broker
How should we select and check a business energy broker?
Start with the service your organisation needs, then check the broker’s legal identity, experience, supplier coverage, remuneration, authority wording, terms and aftercare. A directory status, trade-body membership or voluntary code is evidence to consider, not regulatory approval or a guarantee.
Written by Energy Guide editorial team · Specialist review: Pending · Source checked:
Define what you are appointing the broker to do
Decide whether you need quotation support only, a managed procurement exercise, bill validation, meter and data help, efficiency advice or ongoing contract management. Ask for the service scope, duration and responsibilities in writing.
Check identity, coverage and payment
Confirm the broker’s legal entity and Companies House number. Ask which suppliers it can approach for your organisation, which it will approach in this exercise, and whether commercial arrangements influence the shortlist.
- Every direct fee and commission, including how it is calculated
- The estimated total remuneration over the proposed contract
- Suppliers approached, responses received and exclusions
- Complaints and independent dispute-resolution routes
- References relevant to organisations like yours
Control authority and the decision
Read any Letter of Authority carefully and establish whether it permits data access, negotiation or agreement of a contract. Ofgem warns that business energy agreements made by telephone can be binding and do not automatically have a cooling-off period. Keep the offers, assumptions and decision record.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.
- Ofgem: set up a business energy contract
- Ofgem: energy advice for businesses
- Companies House: find company information