Business energy brokers – everything you need to know

There's a lot of admin involved in running a business, but you don't need to take care of it all yourself. Just as you might hand over your accounts to a professional or have a designer sort your signage, handing over your business energy contract to an expert can save you time and money.

Almost a third of companies with a business energy supply contract use a broker to sort their energy, and with a reported 3,000 brokers currently working in the UK, there are a lot of options available. But not all brokers are the same, so it's essential to mae sure you choose a reputble  broker that is accredited on the Energy Ombudsman Broker Register.

And, you may not realise, but brokers are not quite the same as price comparison websites. Here's all you need to know.

What is a business energy broker?

A business energy broker helps companies find and arrange the best energy deals for their needs. They act as a middleman between energy suppliers and businesses, comparing prices and negotiating contracts on your behalf.

Rather than searching the whole market, most brokers work with a panel of selected suppliers. This means they can often secure exclusive rates or deals you wouldn’t find on your own. Once you’ve agreed to a new contract, the broker also takes care of the admin and helps you stay on track when your renewal date rolls around.

Some brokers also offer advice on things like meter types, readings and market changes – helping you stay informed and make smarter decisions in the future.

How do brokers differ from consultants?

While energy brokers and consultants both operate in the business energy space, they serve slightly different purposes.

A broker’s job is to help you find a competitive deal and take the legwork out of switching or renewing. They’re paid via commission, which comes from the supplier after a contract is signed. This cost is usually built into the rate you're quoted.

Energy consultants, on the other hand, tend to charge a separate fee for their services. They offer a more in-depth look at your business’s energy usage and can suggest ways to improve efficiency, reduce your carbon footprint or manage long-term costs. Consultants usually review the entire market, rather than sticking with a set list of suppliers.

So, while a broker is great for securing a new deal quickly, a consultant might be a better fit if you're looking to completely overhaul your energy strategy.

Are brokers free to use?

Although some brokers do charge a fee, many don’t charge you directly for their service. Instead, they receive a commission from the energy supplier when a contract is agreed. This commission is included in the rate you pay, so it’s important to ask for transparency and read the terms before signing anything.

In October 2022, Ofgem amended the rules around commercial energy contracts for micro businesses. This means that all third party intermediaries (TPIs) need to disclose the amount of commission they make along with any other fees they charge.  

Do brokers compare the whole market?

Not usually. Most brokers have a panel of trusted suppliers they work with regularly. This allows them to negotiate better rates and streamline the process for businesses.

If having access to every possible supplier is a dealbreaker for you, then an energy consultant may be the better option. But for most businesses, a broker’s panel provides more than enough choice – especially if the broker is experienced and transparent about who they work with.

Why should businesses use a broker?

There are plenty of reasons to use an energy broker, especially if you’re busy running a business and don’t have time to shop around. A broker can take care of the comparison process, speak to suppliers on your behalf and manage all the paperwork.

They can also help you avoid rolling into costly out-of-contract rates, by keeping track of your renewal date and making sure you switch or renew in time. Most importantly, they’re there to offer guidance – so you don’t have to make decisions alone.

Using a broker can also save you money. Brokers often have access to exclusive deals that aren’t available to the general public, and they know how to negotiate terms that suit your business.

A broker can also cut the amount of time it takes to compare quotes. If you go it alone, you'll need to ring around a range of suppleirs and get separate quotes for business gas and business electrcity. A broker should be able to do this on one call.

When should you speak to a broker?

You don’t need to wait until your current contract is up to speak to a broker. In fact, it's often the case that the earlier you start looking, the better.

If your contract has already ended and you’ve been moved onto higher rates, a broker can help you find a better deal quickly. Or if you know your renewal is coming up, they can help you lock in a new rate and avoid price volatilty.

Even if you’re not sure when your contract ends, a broker can find this out for you – all they usually need is your business address and a few other details.

What information do you need before calling a broker?

To get the most accurate quote, it helps to have a few bits of information to hand. You’ll need your business address, the name of your current supplier, and your MPAN (Meter Point Administration Number) for electricity or MPRN (Meter Point Registration Number) for gas. You’ll also need to provide a signed letter of authority on your business letterhead, which gives the broker permission to act on your behalf.

Don’t worry if you don’t have everything – most brokers can still get started with your postcode and fill in the blanks along the way.

How do brokers compare energy deals?

When comparing deals, brokers look at several factors – not just price. They consider the length of the contract, the supply type at your business premises, and other terms.

They’ll also take into account current market trends and your business’s needs to recommend the right deal for you. Once you’ve picked a deal, they’ll help you switch and manage the setup process, so there’s no interruption to your energy supply.

Pros and cons of using a broker

Using a broker has plenty of benefits. It can save you time and money, help you avoid rolling onto expensive rates, and give you peace of mind that you’re getting the right deal. You’ll also get expert advice along the way and won’t have to pay a fee upfront.

On the downside, brokers don’t always search the full market, and they won’t usually offer detailed advice on energy efficiency or long-term strategy. If that’s what you need, a consultant may be a better fit.

But for most small and medium-sized businesses, a broker is probably the quickest, simplest way to get a better energy deal.

What should you look for in a broker?

Before signing up with any broker, it’s worth doing a bit of homework.

Check which business energy suppliers they work with – this should be clearly stated on their website. Make sure they’re transparent about commission and don’t hide extra fees in the small print. It’s also a good idea to read customer reviews and see whether they publish regular guides or insights, which shows they’re keeping up with the market.

You should also check how they handle contract renewals and ongoing support. A good broker will stay in touch throughout your contract and be available if you have questions or problems down the line.

Are brokers the same as comparison sites?

Not quite. While both help you find a new deal, they do it in different ways.

Most price comparison websites are online-only. They let you view tariffs and switch at the click of a button – great if you want something fast and simple. But they often focus on domestic energy and don’t offer tailored advice.

Brokers, on the other hand, offer a more personalised service. They speak to suppliers directly, negotiate better terms and talk you through the process so you know exactly what you’re signing up for. This is especially useful for business energy, where there’s no cooling-off period and contracts can be more complex.

Final tips before you switch

Always choose a broker you trust. Make sure you understand the letter of authority before signing it, and ask how they earn their commission. Be cautious about handing over personal details unless you’re sure who you’re dealing with.

If you’re ready to switch, call our energy experts now on 0800 140 4667 or give us your postcode to start a business energy price comparison.