Last updated: 15 October 2026
A business energy broker is a company that finds, compares and arranges gas and electricity contracts for businesses. Instead of you contacting suppliers one by one, the broker gets prices from a panel of suppliers, explains the options and handles the paperwork.
What does a business energy broker do?
A broker acts as a go-between for your business and energy suppliers. In the industry, brokers are called third party intermediaries, or TPIs, and both suppliers and the regulator use that term. SmartestEnergy lists TPIs in its energy glossary and works with brokers, consultants and TPIs as partners who buy energy on behalf of their clients.
Most brokers will do some or all of the following:
- Read your current bills and contract end date
- Ask several suppliers for prices based on your usage
- Explain the difference between contract types and lengths
- Recommend options that fit your budget and risk appetite
- Complete the switch or renewal paperwork with the supplier
- Remind you before your contract ends so you are not left on higher rates
A broker does not supply energy itself. Your supply contract is still with the supplier.
How are energy brokers paid?
Most brokers are paid commission by the supplier, which is added to the price you pay. Some charge a separate fee instead, or a mix of both. Either way, the cost of the broker is paid by you in the end, so it should be shown clearly.
Commission is usually built into the unit rate (the price per kWh) and sometimes into the standing charge. This means a broker’s quote may look like a normal supplier price, even though part of it pays the broker. That is why disclosure matters.
What do Ofgem’s rules say about broker commission?
Since 1 October 2024, suppliers must show broker fees clearly in the principal terms of the contract for contracts signed on or after that date. Ofgem confirmed this in its April 2024 decision on the non-domestic market review. The rule extended an existing requirement that covered only microbusinesses to all non-domestic customers, and suppliers must also give you this information on request.
Ofgem also confirmed in the same decision that suppliers should only work with brokers who are members of a redress scheme when arranging contracts for small businesses. This was set to apply from December 2024, subject to the new small business definition becoming law, according to Ofgem’s factsheet on the decision. Ofgem names the Energy Ombudsman and the Utilities Intermediaries Association as examples of schemes that can resolve broker disputes.
Where can I complain about a broker?
First, complain to the broker directly and give it a chance to put things right. If that fails, you can take the complaint to the redress scheme the broker belongs to. The Energy Ombudsman runs an Energy Broker ADR scheme, which it says went live in December 2022, and other approved schemes also exist.
Should I use a broker, go direct or use a comparison website?
All three routes can work, and the right one depends on your time, your usage and how much help you want. The table below compares them.
| Route | What you get | Watch out for | Suits |
|---|---|---|---|
| Going direct to a supplier | One supplier’s prices and terms, no broker in the middle | You only see one price unless you contact many suppliers yourself | Businesses with time to shop around and simple needs |
| Energy broker (TPI) | Prices from a panel of suppliers, advice, switching and renewal handled for you | Commission or fees, and the quality of brokers varies | Busy owners, multi-site businesses, renewals with tight deadlines |
| Comparison website | Quick online quotes from listed suppliers | Panel may be limited, little advice on contract terms | Small, simple single-site businesses |
If you want to understand how quotes are compared, see our guide to business energy comparison.
What contract types will a broker explain?
The main choice is between fixed and flexible contracts, and then how “fixed” a fixed deal really is. A broker should explain these clearly before you sign.
| Contract type | How the price works | Who it tends to suit |
|---|---|---|
| Fully fixed | Unit rate and standing charge fixed for the term, with non-commodity costs included | Businesses that want budget certainty |
| Fixed with pass-through | Wholesale price fixed, some non-commodity costs passed through at actual cost | Businesses happy to accept some movement in exchange for a different price |
| Flexible | Energy bought in portions over the term on the wholesale market | Larger users with an energy team or broker support |
Fixed contracts
A fixed contract locks in the wholesale part of your price for a set term. SmartestEnergy’s fixed supply page explains that non-commodity charges can either be fixed too or passed through at actual cost, with terms from one to five years. Fixed deals suit businesses with steady usage that want a known rate.
Pass-through versus fully fixed
Not every contract sold as “fixed” is fully fixed. SEFE Energy warns in Is Your Fixed Price Contract Truly Fixed? that some pass-through contracts are marketed as fully fixed. Your bill includes the wholesale cost plus transport charges, levies and other third party costs, and on a pass-through deal some of these can change.
SEFE suggests checking these points:
- Are all non-commodity charges included in the price?
- Are new or revised charges, such as Nuclear RAB and changes to TNUoS, built in?
- Does the contract have any pass-through clauses?
- Are both the unit rate and the standing charge fixed?
- Is the contract described clearly and honestly?
SEFE also notes that even on fully fixed deals, government levies and taxes can still change. Ask your broker to point out exactly which parts of the price could move.
Flexible contracts
A flexible contract buys your energy in stages rather than all at once. SmartestEnergy describes flexible supply as spreading purchases across the term, with decisions made by you or your consultant or TPI. It says these contracts suit businesses with in-house energy management or broker support, such as large single sites or multi-site groups with a central energy team.
When does a broker help most?
A broker is most useful when time is short, the market is moving, or you have lots of meters to manage. Three situations stand out.
At contract renewal
Renewal is when many businesses lose money, often by doing nothing. SEFE’s guide on managing energy contract renewals in a volatile market (24 September 2026) says wholesale gas and power prices have kept rising in recent months. For October renewals, SEFE’s market observations showed costs around 30% to 45% higher than a few weeks earlier, and it cites Cornwall Insight finding energy bills up 25% since February.
SEFE also says that waiting for prices to fall can lead to higher costs, with winter weather, global supply and demand and geopolitics all in play. NGP makes a similar point in The Strategic Illusion of Hope, arguing that putting off a buying decision is a form of unhedged speculation. NGP reports that Winter 2026 gas prices passed 200 pence per therm, the highest since late 2022.
Read more in our guide to business energy contract renewal.
Avoiding out-of-contract rates
If your contract ends and nothing new is agreed, you may be moved onto out-of-contract rates. SEFE says these are typically considerably higher than contracted prices. SEFE advises speaking to your supplier or third party intermediary early, and a broker who tracks your end dates helps you avoid this.
Multi-site businesses
With several sites, each meter may have a different supplier, end date and price. A broker can line these up, compare them together and keep one record of every contract.
What should I ask a broker before signing?
Ask direct questions and expect clear answers in writing:
- How are you paid, and how much commission is in my price? It should match what appears in the supplier’s principal terms.
- How many suppliers are on your panel? A wider panel gives more choice, but ask which suppliers actually quoted for you.
- Are you a member of a redress scheme? Ask which one and check the member listing yourself.
- Who will my contract be with? Your supply contract should be with the supplier, with the broker’s terms set out separately.
- Is this fully fixed or pass-through? Ask which charges could change during the term.
- Can I see the quotes side by side? You should be able to compare unit rates, standing charges and contract lengths.
What are the red flags with energy brokers?
Most problems come from pressure, vague pricing or big promises. Walk away, or at least slow down, if you see any of these signs:
- Pressure selling. Being told a price is “only valid for the next hour” or being pushed to agree on a call without seeing terms.
- Unclear commission. Refusing to say how they are paid, or saying the service is “free” without explaining that commission sits in the price.
- Promises of the “cheapest” deal. No broker can see every price on the market at every moment, and the lowest rate is not always the best contract.
- No redress scheme. No membership, or a name you cannot check.
- Contract confusion. Being unclear about whether you are signing with the broker or the supplier.
How does Utility Market Watch work?
Utility Market Watch is a business energy broker based in Leicester that compares business gas, electricity and water from a panel of suppliers. Our panel includes suppliers such as British Gas, EDF, E.ON, SEFE Energy, SmartestEnergy, ScottishPower and ENGIE. We explain the options, handle the switch and manage renewals so your contracts do not roll onto higher rates unnoticed.
We do not claim to be the cheapest, because no broker can honestly promise that. What we aim for is a clear comparison, clear terms and a contract that suits your business. You can compare business electricity and gas with us, together or separately.
Our free UMW Health Check reviews your current bills for errors, checks you are getting any discounts you are entitled to and completes supplier paperwork for you. Utility Market Watch, trading name of Steeris Holdings Ltd, is a member of the Dispute Resolution Ombudsman, and you can view our member listing.
Frequently asked questions
What is an energy broker in simple terms?
An energy broker is a company that compares energy contracts from several suppliers for your business. It explains the options and handles the switch or renewal for you. Your supply contract is still with the energy supplier.
Is a business energy broker the same as a TPI?
Yes, a broker is a type of third party intermediary, or TPI. The term also covers energy consultants and comparison websites that arrange contracts for businesses. Ofgem and suppliers use TPI in their rules and documents.
Are energy brokers free to use?
Usually you do not pay the broker directly, but that does not mean it is free. Most brokers are paid commission that is included in your unit rate or standing charge. Always ask how much commission is in your price.
Do I have to be told how much commission my broker earns?
For contracts signed on or after 1 October 2024, Ofgem requires suppliers to show broker fees clearly in the principal terms of the contract. This applies to non-domestic customers, and suppliers must also provide it on request. Check the terms before you sign.
Can I use a broker for business water as well?
Yes, some brokers also compare business water, so you can manage your business utilities in one place. Utility Market Watch compares business water alongside gas and electricity. Ask your broker which water suppliers it works with.
When should I contact a broker about my renewal?
Contact a broker well before your contract end date, ideally several months ahead. SEFE advises speaking to your supplier or TPI early, as out-of-contract rates are typically considerably higher. Starting early gives you more time to compare offers.
What can I do if I have a problem with my broker?
Complain to the broker first and keep a written record. If it is not resolved, take it to the redress scheme the broker belongs to, such as the Energy Ombudsman or another approved scheme. Utility Market Watch is a member of the Dispute Resolution Ombudsman.
Get a quote
If your contract is coming up for renewal or you want a second opinion on your current deal, we can help. Request a business energy quote, call us on 03333 601010 (Monday to Friday, 9am to 5pm) or contact our team.