What Does a Business Energy Consultant Actually Do?

I’ve been advising UK businesses on their energy contracts since 2002. In that time the market has been through privatised calm, the 2008 crash, the 2021–22 supplier collapse and the price cap era — and the one constant is that most business owners still sign energy contracts they haven’t properly compared, at prices they can’t benchmark.

That’s the problem a business energy consultant exists to solve. Here’s what the job actually involves, what it should cost you, and how to tell a consultant from a salesperson with a nicer job title.

Consultant vs broker: the distinction that matters

The terms get used interchangeably, but the business models differ.

A typical energy broker is paid commission by the supplier whose contract you sign — a margin added to your unit rate that you often never see itemised. There’s nothing inherently wrong with supplier-funded commission, but an undisclosed one creates an obvious incentive problem: the broker’s best-paying supplier may not be your best-priced one.

A consultant works for you. At Telnergy the fee is agreed upfront and you choose how to pay it — directly by invoice, or via the supplier built into the rate. Either way, you see the number before you sign. Since 2022, Ofgem requires suppliers to work only with brokers offering alternative dispute resolution for microbusiness customers; we’re an Ofgem registered third-party intermediary (TPI) with ADR membership (Ref E3561). Ask any consultant you’re considering for both.

What the work actually looks like

A proper engagement runs in four stages:

1. Position review. We start with your current contracts: end dates, notice periods, unit rates, standing charges, and whether you’re on out of contract rates without knowing it. In my experience roughly one in five businesses that come to us is paying deemed rates on at least one meter.

2. Market comparison. Whole-of-market quotes on a like-for-like basis — same duration, same consumption profile, all charges included. The headline unit rate is where suppliers hide things; the comparison has to include standing charges, capacity charges on larger supplies, and pass-through costs.

3. Negotiation and contracting. Suppliers price differently for a consultant bringing a portfolio of business than for a single company ringing the sales line. We handle contract negotiation, termination notices on the old contract, and the switch itself.

4. Lifecycle management. The renewal date goes in our diary, not just yours. Most overpayment happens at renewal, when the incumbent supplier’s “renewal offer” quietly prices in your inertia. See our renewal guide for how that works.

When you need one — and when you don’t

You’ll get the most value from a consultant if any of these apply:

• Multiple meters or sites (aggregated procurement gets better pricing)
• Half-hourly metered supplies, where contracts are bespoke
• You’re out of contract now, or within six months of renewal
• Nobody in the business owns energy as a responsibility

If you’re a single small meter on a recent competitive fixed rate, a consultant’s honest answer may be “stay put” — and you should expect to hear it. We tell clients this regularly; a consultancy that always recommends switching is a sales operation.

What it should cost

Our model, plainly: the fee is agreed before you sign anything, and if you don’t proceed, no fee becomes payable. Across the industry, supplier-funded commissions typically run 1–2p/kWh — on a 100,000 kWh site, that’s £1,000–£2,000 a year built into your rate whether anyone tells you or not. The difference with a consultancy is not that the work is free; it’s that you see the price of it.

Frequently asked questions

Is an energy consultant regulated? TPIs aren’t licensed the way suppliers are, but Ofgem requires ADR membership for those serving microbusinesses, and suppliers vet the intermediaries they’ll work with. Check for an ADR reference and Companies House history — ours is CRN 04576876, trading since 2002.

Can’t I just use a comparison site? For a single small meter, you can. Comparison sites are brokers with a web front end — same commission model, less negotiation, and nobody managing your renewal in two years’ time.

Do you work with businesses outside Dorset and Hampshire? Yes — we’re based in Christchurch and most of our clients are across Dorset, Hampshire and London, but energy contracts are national and so are we.

Talk it through

The simplest starting point is a review of your current contract position — send us a recent bill and we’ll tell you where you stand. Fee agreed upfront; it only becomes payable if you proceed.

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Johnny Arthur runs Telnergy Ltd, an independent commercial energy consultancy established in 2002. Telnergy is an Ofgem registered TPI (ADR Ref E3561), registered in England & Wales, CRN 04576876.