Energy Brokers for Business: What They Do, What They Cost, and How to Choose

There Are Around 3,000 Energy Brokers Operating in the UK Business Market. Here’s How to Tell the Difference Between the Good Ones and the Rest.

Energy brokers for business — also referred to as Third Party Intermediaries (TPIs), commercial energy consultants, or energy management companies — are the intermediaries between UK businesses and the energy suppliers who power their premises. Their core function is to access the market on your behalf, compare contracts from multiple suppliers, and recommend the option that best suits your business profile and commercial requirements.

In principle, this is straightforward and genuinely valuable. In practice, the UK energy broker market ranges from highly professional independent consultants providing expert, transparent advice, to volume-driven operations whose business model depends on maximising commission income from the highest-paying suppliers — at your expense.

This guide explains exactly what energy brokers do, what they cost, and how to identify which type you’re dealing with.

What an Energy Broker for Business Actually Does

A commercial energy broker performs several distinct functions, not all of which every broker delivers equally well:

Market access: The broker approaches multiple energy suppliers on your behalf, requesting quotes for the supply of electricity and/or gas to your premises. The quality of this function depends directly on the breadth of the supplier panel — a broker with access to 15–20 suppliers provides a more comprehensive market comparison than one with relationships with 4–5 suppliers.

Quote comparison and analysis: The broker analyses the quotes received, comparing unit rates, standing charges, contract terms, supplier credentials, and — on all-inclusive versus pass-through contracts — the allocation of non-commodity charge risk. A good broker presents this analysis transparently; a poor one presents a pre-selected recommendation without the underlying comparison.

Contract recommendation: Based on the market comparison and your business’s specific circumstances — consumption profile, risk tolerance, budget requirements, operational calendar — the broker recommends a contract. The recommendation should be specific to you, not a generic “best price in the market.”

Execution and transition: Once you accept a recommendation, the broker manages the contracting process — completing supplier documentation, managing notification to your incumbent supplier if you’re switching, coordinating meter transfer, and ensuring the new contract starts without a supply gap.

Ongoing contract management: A full-service broker tracks your contract renewal dates, flags the notification deadlines, and initiates the next market review at the appropriate time — typically 5–6 months before your contract expires. This ongoing management is what distinguishes an energy consultant from a one-off comparison service.

What Energy Brokers Cost

Commercial energy brokers in the UK are compensated through commission paid by the energy supplier, not as a separate fee charged directly to the business. The commission is embedded in the unit rate you pay: the supplier adds a “broker uplift” on top of their base supply rate, and passes this to the broker over the course of the contract.

This structure means you don’t write a cheque to your broker. But you do pay them — through the unit rate on every kWh you consume. The commission is real, it is material, and it is yours to know about under Ofgem’s TPI Code of Practice.

What the commission range looks like:

• Low end (volume brokers, competitive market): 0.1–0.2p/kWh
• Mid-market (standard independent brokers): 0.3–0.5p/kWh
• High end (some smaller or less competitive operations): 0.5–1.5p/kWh

On a business consuming 300,000 kWh per year, the difference between 0.2p/kWh and 1.0p/kWh commission is £2,400 per year — invisible on your bill, but real money paid for the same market access.

The Five Things to Check Before Working with an Energy Broker

1. Are they Ofgem TPI registered? The Ofgem TPI register is publicly searchable. Registered brokers have committed to the TPI Code of Practice — a minimum standard for commission disclosure, independent advice, and adequate market access. Unregistered brokers are operating without this commitment. Telnergy is an Ofgem registered TPI.

2. How many suppliers are on their panel? A genuinely competitive market comparison requires access to 10–15+ suppliers. A broker with a panel of 3–4 suppliers is not comparing the market — they’re comparing a subset of it, almost certainly for commercial reasons.

3. Will they disclose their commission? Ask directly: “How much commission will you receive on the contract you’re recommending, in pence per kWh or as a total £ amount?” A compliant broker answers immediately. Evasion or deflection (“we’re paid by the supplier, not you”) is a non-compliance signal.

4. Do they have preferred supplier arrangements? Some brokers receive enhanced commission from specific suppliers in exchange for volume commitments. This creates a structural bias toward recommending those suppliers regardless of whether they’re the best option for the client. Ask directly whether any such arrangements exist.

5. Do they provide ongoing contract management or just one-off comparisons? One-off comparison services get you a contract. Full-service energy consultants track your renewals, flag deadlines, and manage the process proactively. For businesses with more than one energy contract — multiple sites or dual fuel — the ongoing management element is particularly valuable.

Types of Energy Broker: Understanding the Market

Independent energy consultants: Specialists who work exclusively on energy procurement and management for business clients. Typically serve SME and mid-market clients with a full-service model. Telnergy falls in this category.

Price comparison platforms: Online comparison tools that aggregate quotes from a subset of suppliers. Useful for simple, single-site SME contracts but typically don’t provide the analysis depth, non-commodity charge review, or ongoing management that specialist consultants offer.

Facilities management and procurement companies: Larger organisations that include energy procurement within a broader FM or procurement service. May not have dedicated energy expertise, and their commission structures are not always transparent.

Direct from supplier: UK energy suppliers accept direct applications from business customers without a broker involved. You pay no broker commission in this scenario, but you access only one supplier’s rates and don’t benefit from market comparison. For businesses confident in managing their own procurement, this is a viable option — but the competitive market access a broker provides typically delivers savings that more than offset the commission cost.

When to Engage an Energy Broker

The right time to engage an energy broker for your business is 5–6 months before your current contract expires. This gives adequate time to run a proper market comparison, evaluate options without deadline pressure, and execute a contract in a favourable market window if one presents itself.

If your contract has already expired or you’re on out-of-contract rates, the right time was 6 months ago — but the second best time is right now. Every day on out-of-contract rates is an avoidable cost.

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📧 Email: hello@telnergy.com

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Telnergy Limited · Independent commercial energy consultancy since 2002 · Ofgem registered TPI · ADR Ref E3561 · CRN 04576876 · Christchurch, Dorset