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Last updated October 2026.
How brokers are paid
Most business energy brokers are paid by the supplier, not the client, through a commission built into the contract unit rate. The supplier quotes the broker a base price, the broker adds an uplift in pence per kWh, and the customer signs at the combined rate. The supplier then pays the broker the uplift on every kWh consumed over the contract, either up front against expected volume or as the energy is used. The customer pays nothing directly, which is why brokering is often described as free; it is not free, it is paid through the rate.
Some brokers and consultants charge the client a fee instead or as well. Neither model is better in itself. What matters is that the customer knows which applies, how much it is, and that the total is reasonable for the work done.
What is typical
| Typical range | On a 100,000 kWh site | |
|---|---|---|
| Electricity uplift | 0.3p to 1.5p per kWh | £300 to £1,500 a year |
| Gas uplift | 0.1p to 0.5p per kWh | £100 to £500 a year |
| Client fee (where charged instead) | Fixed or a share of saving | Varies; should be disclosed in full |
Those ranges are wide because the work varies: a single small meter renewed in an hour sits at the bottom; a complex multi-site tender with validation and account management sits at the top. Uplifts well above these ranges exist and are the reason the market has a reputation problem. On a large contract, an extra penny per kWh is tens of thousands of pounds a year.
What does broker commission cost in pounds? A worked example
Commission is quoted in pence per kWh and added to the unit rate, so the cost in pounds depends entirely on how much you use. Three illustrative examples, using commission levels that are common across the market rather than a figure for any specific contract:
| Annual electricity use | Commission at 0.5p/kWh | Commission at 1.0p/kWh | Commission at 2.0p/kWh |
|---|---|---|---|
| 10,000 kWh (small shop) | £50 a year | £100 a year | £200 a year |
| 40,000 kWh (restaurant) | £200 a year | £400 a year | £800 a year |
| 150,000 kWh (hotel) | £750 a year | £1,500 a year | £3,000 a year |
| 500,000 kWh (factory) | £2,500 a year | £5,000 a year | £10,000 a year |
On a contract at 28p/kWh, 1p of commission is about 3.5 percent of the unit rate; at 2p it is about 7 percent. Two things follow. A broker’s commission is worth asking for in pounds a year, not just pence, because the pence figure hides how much it scales with usage. And the question that matters is not whether commission exists but whether the contract, including the commission, costs less for the year than the alternatives you can get, which is what a like-for-like comparison shows.
Ask any broker, including us, for the commission on a specific quote and you should get the p/kWh figure and the annual pounds figure in writing. Since 1 October 2024 the supplier must also disclose third-party costs to every business customer, and for microbusinesses the figure appears in the contract’s principal terms, so the number is checkable against the contract itself.
Talk it through with us
Send us a recent bill or a quick description of your sites and we will tell you plainly what applies to you and what it would involve. No obligation.
Disclosure rules
Since 2022 Ofgem has required suppliers to ensure brokers disclose the commission on contracts sold to microbusinesses, in pounds and pence over the contract term, before the customer signs. The supplier is responsible for the broker’s conduct in this respect and must only work with brokers signed up to an alternative dispute resolution scheme. For larger businesses there is no legal requirement, but reputable brokers disclose regardless, and the question is a fair one to ask of anyone.
Our how we make our money page gives our own answer. The how to check a broker is legitimate guide covers the wider due diligence.
Nawa Kitchen, London
How a London restaurant turned a single contract cycle into an ongoing renewals partnership, with reminders before each end date and market insight when it mattered. Read the case study.
Frequently asked questions
How do energy brokers make money?
Mostly through a commission, or uplift, added to the supplier’s unit rate and paid by the supplier over the contract. Some charge the client a fee instead or as well.
How much commission does an energy broker charge?
Typically 0.3p to 1.5p per kWh on electricity and 0.1p to 0.5p on gas, depending on the work involved. Much higher uplifts exist and are worth questioning.
Do energy brokers have to disclose commission?
For microbusiness customers, yes: Ofgem rules require disclosure in pounds and pence over the term before signing. For larger businesses it is not required but reputable brokers do it anyway.
Is using a broker free?
Not free; paid through the contract rate rather than directly. The question is whether the uplift is reasonable for the work done.
Can I get a cheaper price going direct to the supplier?
Sometimes, sometimes not. Suppliers price direct customers differently and a broker’s panel pricing can be lower even with the uplift. Compare the annual cost of both.
How does Clearsight Energy disclose its commission?
On every quote, in pence per kWh and pounds over the term, for every customer regardless of size.
Your questions on this, answered in order
The questions businesses actually ask about this topic, in the order they tend to ask them. Each answer leads to the next; where we can help, there is a link.
How do business energy brokers get paid?
Most business energy brokers are paid a commission added to your unit rate or standing charge, while some charge a fixed fee. Since October 2024, Ofgem has required suppliers to disclose broker fees to all business customers, not just microbusinesses. That means you can see what you’re paying for the broker’s service before you sign.
Where can I see the broker fee on my contract?
Look in the principal terms supplied with your contract, where the supplier must state third-party costs such as broker fees. For microbusinesses this has been required since 2022, and since October 2024 it applies to all business customers. If you can’t find it, ask your supplier directly, as they must make the information available on request.
Is a broker fee a bad thing?
Not necessarily. A broker’s fee pays for comparing the market, handling paperwork, managing renewals and helping with problems. What matters is that the fee is reasonable, clearly shown and that the service suits you. Going direct can work too, though you’ll be comparing offers yourself. Asking for the fee in pounds over the contract makes comparison easier.
How does Clearsight Energy show its fee?
Clearsight Energy’s fee is set out with each quote and is disclosed by the supplier, in line with Ofgem rules. We’ll explain how it’s included in the rates and what it covers, from comparing suitable contracts to renewal reminders and help with bill queries. Ask us for the figure on any option and we’ll show it plainly.
Can someone run a business electricity quote for me?
Yes. Clearsight Energy can compare suitable contracts across the suppliers on our panel for you. A recent bill helps, though your MPAN, address, current supplier, contract end date and an idea of annual usage are usually enough to start. We’ll set out the options, the term, the rates and the broker fee so you can decide in your own time. Get in touch →
Are energy brokers regulated by Ofgem?
Not directly yet. Ofgem regulates suppliers, who may only use brokers signed up to a qualifying redress scheme for micro and small business contracts. The government has confirmed plans to give Ofgem powers to regulate brokers, with Ofgem reviewing the market during 2026 and further proposals expected afterwards. Until then, Ofgem’s good practice principles are guidance rather than enforceable rules.
Can I complain to the Energy Ombudsman about a broker?
Yes, if the broker is registered with the Energy Ombudsman’s broker scheme, and suppliers must only use registered brokers for micro and small business contracts. Raise the complaint with the broker first. If it isn’t resolved, you can escalate. Different award limits apply to broker cases than to supplier cases.
How do I check a broker is registered with a redress scheme?
Ask the broker which redress scheme they belong to and check with the scheme directly. The Energy Ombudsman, the Utilities Intermediaries Association and the Dispute Resolution Ombudsman all run schemes that meet Ofgem’s criteria for broker disputes. A reputable broker will tell you readily, along with how they’re paid and how to complain if something goes wrong.
Can someone run a business electricity quote for me?
Yes. Clearsight Energy can compare suitable contracts across the suppliers on our panel for you. A recent bill helps, though your MPAN, address, current supplier, contract end date and an idea of annual usage are usually enough to start. We’ll set out the options, the term, the rates and the broker fee so you can decide in your own time. Get in touch →
Did my broker mis-sell my business energy contract?
Mis-selling can include undisclosed or excessive commission, misleading claims about savings, or pressure to sign. Start by gathering your contract, principal terms and any communications. Raise a complaint with the broker and supplier, then the Energy Ombudsman if eligible. Some businesses also pursue civil claims, which have different time limits and costs.
Can someone check my business electricity bill for errors?
Clearsight Energy offers bill validation, which compares your invoices against your contract rates, meter reads, standing and capacity charges, VAT and CCL treatment. Common findings include estimated reads, wrong VAT rates and charges carried over after a move. Send us recent bills and the contract and we’ll explain what we find and what can be raised with the supplier. Get in touch →
How do business energy brokers get paid?
Most brokers are paid a commission by the supplier, usually built into your unit rate or standing charge, though some charge a fixed fee. Since 1 October 2024, Ofgem rules require suppliers to clearly show broker fees on contracts for all non-domestic customers. If it isn’t shown, you can ask for it.
Where do I see the broker fee on my gas contract?
Suppliers must show any broker fee clearly in the contract or principal terms for contracts agreed from 1 October 2024, often as pence per kWh or a total amount. Check your contract and statement of renewal terms. For older contracts, you can ask your supplier what commission was included.
I think a broker overcharged me on commission, what can I do?
Ask the supplier for the commission figure and the broker for an explanation. Complain to the broker first. Since December 2024, suppliers working with small business customers must only use brokers registered with a redress scheme, so you can escalate to the Energy Ombudsman or the relevant scheme. Some businesses pursue legal claims for undisclosed commission.
Can you check what commission was on my existing gas contract?
Clearsight Energy can review your contract and bills and help you ask the supplier for the commission that was included. If you’d like us to quote your next contract, we’ll show our fee clearly so you can compare on a like-for-like basis. Get in touch →
Are energy brokers regulated by Ofgem?
Not directly yet. Ofgem regulates suppliers, and supplier rules now require broker fee disclosure and use of brokers in a redress scheme for small businesses. In July 2026 Ofgem said it was preparing to regulate brokers, with a market review due by the end of 2026 and consultation proposals expected in 2027, ahead of a registration regime.
How do I choose a trustworthy energy broker?
Look for clear fee disclosure up front, membership of a redress scheme such as the Energy Ombudsman or the Utilities Intermediaries Association, written quotes you can check, and no pressure to sign quickly. A good broker explains the contract terms, shows the total cost, and is happy for you to verify the supplier’s prices.
Should I use a broker or go direct to a gas supplier?
Going direct means dealing with one supplier’s offer at a time. A broker can gather quotes from several suppliers, handle the paperwork and track your renewal dates, in return for a fee that’s disclosed in your contract. Some businesses check a direct quote alongside broker quotes to test the market.
Can Clearsight quote my gas and show the fee clearly?
Yes. Clearsight Energy will gather suitable quotes for your site and show the broker fee alongside each one, so you can compare total cost transparently. Send your MPRN or a recent bill to get started. We’ll explain each option in plain terms, and you’re under no obligation to go ahead with any quote. Get in touch →
What happens after I accept a gas quote through a broker?
The supplier sends a contract or confirmation, runs its credit check and registers the supply ready for your start date. If you’re switching, the old supplier is notified and you give a meter reading on the day. Your broker should keep you updated, and you’ll receive your first bill from the new supplier after the start date.
Who do I contact if something goes wrong after my gas switch?
For billing, readings or supply issues, your supplier is the first contact, and for a gas emergency always call 0800 111 999. If you switched through a broker, they can help you chase problems, check bills and raise complaints. Keep your contract and account numbers somewhere easy to find.
Can Clearsight help manage my gas account after the switch?
Yes. Clearsight Energy can stay in touch after your switch, help with billing queries, check bills when something looks wrong and start the renewal process well before your contract ends. Get in touch with your account details whenever you need us. Get in touch →
Need help? Get in touch
Call us on 020 8036 5715, or email us, and we will take it from there.