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Last updated October 2026.
What a broker does for a small business
For a small business the broker’s job is narrow and valuable: make sure you are not on out-of-contract rates, price your meter across a panel of suppliers rather than accepting the renewal letter, check the bill is right, and remind you before the next termination window. It is paid for by the supplier through the contract rate, so there is no invoice to the business. Done well, it takes you an hour a year.
- Price the renewal across our supplier panel. Several suppliers, same consumption, annual cost compared.
- Check the current bill. Rates against contract, reads, VAT, levy.
- Manage the dates. Termination notice served inside the window; new contract starting the day the old one ends.
- Disclose the commission. In pounds and pence, before you sign.
Protections for microbusinesses
If your business has fewer than ten employees and turnover or balance sheet under two million euros, or uses under 100,000 kWh of electricity or 293,000 kWh of gas a year, you are a microbusiness under Ofgem’s rules. Brokers selling to you must disclose their commission before you sign, must belong to an alternative dispute resolution scheme you can escalate to, and the supplier is responsible for the broker’s conduct. You also benefit from the back-billing limit of twelve months.
Those protections are real but recent, and they depend on the broker being one that suppliers will work with. A broker that is vague about commission or dispute resolution is outside them. The regulation page explains the framework.
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.
Cold calls and the warning signs
| Warning sign | Why it matters |
|---|---|
| “Your contract is about to end and you must act today” | Pressure replaces comparison. Check your own contract date; brokers often do not know it. |
| Claims to be calling from or for your supplier | A broker is not your supplier. Hang up and call the supplier on the number on your bill. |
| A verbal contract or recorded agreement over the phone | Business energy contracts can be binding verbally. Never agree terms on a call; ask for everything in writing. |
| No answer on commission | Disclosure is required for microbusinesses. Silence is an answer. |
| A letter of authority with exclusivity or signing powers | Limits your options and can bind you to contracts you did not approve. |
None of this means brokers are to be avoided. It means the good ones are easy to identify: they tell you how they are paid, they put everything in writing, they let you take your time, and they tell you when the renewal letter is actually the best deal. How to choose a business energy broker goes into the detail.
The Cause, Ayrshire
A small Scottish staging company closed an auto-renewal trap and cut its standing charge from £4 a day to 50p, saving £3,832 over a three-year term. Read the case study.
Frequently asked questions
Is it worth a small business using an energy broker?
Usually yes, for the renewal and the bill check, provided the broker discloses commission and compares a real panel. It costs the business nothing directly and prevents the two expensive mistakes: lapsing onto out-of-contract rates and accepting the renewal letter unchallenged.
What is a microbusiness for energy purposes?
Fewer than ten employees and turnover or balance sheet under two million euros, or electricity use under 100,000 kWh a year, or gas use under 293,000 kWh a year.
Can I agree an energy contract over the phone?
Yes, and that is the problem: verbal business energy contracts can be binding. Insist on written terms and time to read them.
How do I know what commission a broker is taking?
Ask, and for microbusinesses it must be disclosed in pounds and pence over the term before signing. Get it on the quote.
What should I do if a broker cold-calls me?
Do not agree anything. Take their details, check the company, and compare in your own time with a broker you have chosen.
How does Clearsight Energy work with small businesses?
We price the renewal across our panel, check the bill, manage the dates and disclose our commission on every quote. We do not cold-call.
Need help? Get in touch
Call us on 020 8036 5715, or email us, and we will take it from there.