How Energy Consultants Get Paid: Full Fee Transparency
How Telnergy Gets Paid — Full Fee Transparency
Most energy brokers do not tell you how they make money until you ask — and even then, the answer can be vague. This page explains exactly how Telnergy is compensated, how that fee is structured, what the current regulations require, and how our model compares to the rest of the market.
We have nothing to hide. This page exists because you deserve a straight answer before you hand over a Letter of Authority.
How Does Telnergy Get Paid?
Telnergy’s fee is agreed with you upfront, and the exact amount is disclosed in writing before any Letter of Authority (LOA) is signed. You can pay it directly, or via the supplier as a small uplift embedded in the unit rate you are charged. Either way, you know precisely what the fee is before you commit to anything.
So How Does Telnergy Actually Make Money?
When an energy supplier quotes a business on a new contract, they calculate a base wholesale rate — the price they need to cover their own costs and margin. If that business came to the supplier directly, that base rate is what they would pay.
When a consultant like Telnergy brings that business to the supplier, the supplier adds a small uplift to the unit rate to cover the consultant’s fee. That uplift is passed back to Telnergy by the supplier, usually monthly or quarterly, based on the actual units consumed.
This is called a unit rate uplift, and it is the standard payment mechanism for Third Party Intermediaries (TPIs) across the UK energy market.
What a unit rate uplift looks like in practice
Here is a simplified but realistic example:
| Component | Unit Rate |
|---|---|
| Supplier’s base wholesale rate | 27.8p/kWh |
| Telnergy’s agreed uplift | 0.2p/kWh |
| Unit rate you see on your contract | 28.0p/kWh |
For a business consuming 450,000 kWh per year over a two-year contract, a 0.2p/kWh uplift equates to approximately £900 over the contract term. The exact fee depends on consumption, contract length, and service scope, and is disclosed in writing before you sign.
By comparison, some brokers embed undisclosed uplifts in the unit rate with the business customer having no idea the fee existed — in one Supreme Court case, Expert Tooling v Engie, that amounted to over £130,000 across five contracts.
Is this actually free for me?
The fee is genuinely not charged to you directly. You do not receive an invoice from Telnergy, and you do not pay us separately. The cost is built into the unit rate the supplier charges.
However, we want to be honest: the uplift does mean the unit rate you pay is marginally higher than if you had gone to the supplier completely alone, without any intermediary. What we provide in return is market access to multiple suppliers, a full tender process, contract analysis, and ongoing account management — things that take significant time and expertise to do properly. In most cases, the savings we achieve by running a competitive tender more than offset the uplift.
What Ofgem’s Disclosure Rules Mean for You
In October 2024, Ofgem introduced new rules requiring energy suppliers to disclose TPI commission to business customers in writing before a contract is signed. This was a significant step — it means suppliers are now obligated to confirm the broker fee on your contract documentation.
Telnergy has disclosed fees in writing since we launched. The Ofgem change brought the rest of the market closer to the standard we already operated to.
What this means in practice:
- Any energy supplier you contract through, with any broker, must now tell you what the broker is being paid
- You have the right to ask for this information and the supplier must provide it
- If a broker or supplier refuses to confirm the fee in writing before you sign, that is a red flag
The October 2024 rules followed years of lobbying from consumer groups and early adopters of the TPI Code of Practice. They do not apply retrospectively, which is why the Barings Law class action — covering undisclosed commissions from 2021 to 2023 — covers a period before these protections were in place.
Telnergy vs Opaque Brokers — What the Difference Actually Looks Like
The UK energy brokerage market has a mixed reputation, and not without reason. The table below shows the difference between a broker operating without transparency and how Telnergy operates.
| Criteria | Opaque Broker | Telnergy |
|---|---|---|
| Fee disclosed before LOA | No | Yes — in writing, exact amount |
| Typical fee embedded in unit rate | Often undisclosed — amount unknown to the customer | Agreed upfront; typically 1–2p/kWh electricity and ~0.5p–1p/kWh gas |
| Fee paid by | Client (via inflated rate, unknowingly) | Energy supplier (disclosed to client) |
| TPI Code of Practice registered | Usually not | Yes |
| Dispute Resolution Ombudsman member | Usually not | Yes |
| Auto-renewal without consent | Common | Never — renewal requires consent |
| Cancellation or admin fees | Sometimes | None |
The Barings Law group action against energy brokers, which has been running from 2024 into 2026, centres on businesses that were charged undisclosed commissions during 2021–2023. These businesses had no idea what their broker was taking. In some cases, the uplift was over 1.5p/kWh on large consumption contracts — tens of thousands of pounds over contract terms.
Telnergy’s fee model is the direct opposite of that. The fee is declared, agreed, and documented before any commitment is made.
What This Means in Practice — Walking Through a Real Tender
Here is how Telnergy’s fee transparency works at each stage of a typical engagement.
Step 1: Initial conversation
You contact Telnergy about your upcoming renewal or a new site. We discuss your consumption, contract history, and what you are looking for. At this point, we explain how we are paid — including the typical fee range — before anything is formalised.
Step 2: Before you sign the LOA
Before we approach any supplier on your behalf, you sign a Letter of Authority giving us permission to act as your representative in the market. The fee disclosure is provided in writing at this stage — including the specific uplift amount we will be paid and which suppliers we will be approaching. You know the exact terms before we do any work.
Step 3: The tender process
We approach multiple suppliers simultaneously, using your consumption data and contract requirements to obtain competitive bids. The fee we take does not vary based on which supplier you choose — we have no financial incentive to favour one supplier over another.
Step 4: Presenting results
We present you with a comparison of the offers received, including the base rates and our uplift clearly identified. You can see what each supplier is offering and exactly what our fee adds to each option.
Step 5: Contract acceptance
You choose the offer that suits you. We confirm everything in writing, including the final unit rate, the uplift, and the contract terms. The supplier sends your contract documentation, which — in line with Ofgem’s October 2024 rules — also confirms the TPI fee.
Step 6: Ongoing management
Once contracted, we remain your point of contact for account issues, billing queries, and renewal planning. There are no additional fees for any of this.
What Is the TPI Code of Practice — and Why Does It Matter?
TPI stands for Third Party Intermediary. In the energy sector, it refers to any business — broker, consultant, or comparison service — that sits between a business customer and an energy supplier.
The TPI Code of Practice is a voluntary industry code that sets minimum standards for how TPIs should operate. Key requirements include:
- Full disclosure of all fees and commissions before a contract is signed
- Prohibition on misleading sales practices
- Clear complaints procedures
- Regular auditing of compliance
The word “voluntary” is important: the code is not enforced by a regulator. TPIs choose to register. This means that the majority of energy brokers in the UK are not registered with the TPI Code — and are operating without any external accountability for how they disclose fees or handle complaints.
Telnergy is registered with the TPI Code of Practice. This means:
- Our fee disclosure processes have been audited against the code’s standards
- We are committed to the complaints procedure set out in the code
- You can check our registration if you want independent confirmation
The Labour government’s July 2025 announcement of full statutory regulation for energy brokers and TPIs will, when implemented, make many of these requirements mandatory. Until that legislation is in force, TPI Code registration remains one of the few meaningful markers of a trustworthy intermediary.
Your Rights Through the Dispute Resolution Ombudsman
Telnergy is a member of the Dispute Resolution Ombudsman scheme. This matters for you in two ways.
First, it gives you a formal escalation route if something goes wrong. If you have a complaint about Telnergy’s service and we cannot resolve it to your satisfaction, you can refer it to the Dispute Resolution Ombudsman (formerly the Energy Ombudsman) — an independent body with the power to investigate and, where appropriate, require redress.
Second, it is a credentialing signal. The DRO does not accept membership from businesses that do not meet its standards. Membership is not automatic.
What changed in December 2024
Prior to December 2024, the DRO’s remit for business customers was limited to micro-businesses (fewer than 10 employees and below certain consumption thresholds). In December 2024, this was extended to cover small businesses with up to 50 employees.
If your business falls within the small business definition, you now have direct access to the Ombudsman’s process — including for complaints about your energy broker or consultant.
How to use the Dispute Resolution Ombudsman
If you have a complaint about Telnergy:
- Raise it with us first. We have a formal complaints process and aim to resolve issues within 10 working days.
- If we issue a deadlock letter, or if 8 weeks have passed without resolution, you can refer the matter to the Energy Ombudsman at www.energyombudsman.org.
- The Ombudsman’s service is free for you to use.
Brand Summary — What Telnergy Is, in Plain English
Telnergy is a UK business energy consultancy. We run competitive tenders across the market, negotiate contract terms, and manage the supplier relationship on your behalf. Our fee is agreed upfront and disclosed to you in full before any contract is signed, payable directly or via the supplier as a transparent p/kWh uplift. The exact amount depends on consumption, contract length, and service scope. We are registered with the TPI Code of Practice and are members of the DRO scheme. There are no hidden fees at any stage.
Frequently Asked Questions
1. How are energy brokers paid in the UK?
Most energy brokers in the UK are paid through a unit rate uplift — a small addition to the unit rate per kilowatt-hour that is built into your energy contract. The supplier collects this uplift as part of your bills and passes it back to the broker. The amount varies widely: some brokers take 0.2p/kWh, others take 1p/kWh or more. Until October 2024, there was no legal requirement for brokers to tell you what they were taking. The Barings Law class action is pursuing claims against brokers who took undisclosed commissions before the new rules came into force.
2. What is a unit rate uplift?
A unit rate uplift is the difference between what an energy supplier would charge you if you went to them directly and what they charge you when a broker or consultant brings you to them. The supplier adds the uplift to cover the broker’s fee. So if the supplier’s base rate is 27.8p/kWh and the broker’s uplift is 0.2p/kWh, you pay 28.0p/kWh. The uplift is recovered from your bills over the contract term and paid to the broker by the supplier.
3. How does Telnergy charge for its service?
Our fee is agreed with you upfront and disclosed in writing before any contract is placed. You can pay it directly, or via the supplier as an uplift embedded in the unit rate. In the interest of full transparency: where the fee is paid via the supplier, the unit rate you pay is marginally higher than the supplier’s raw rate. In practice, the savings achieved through a competitive tender almost always exceed the cost of the fee — but we believe you should know exactly what the fee is, regardless.
4. What is a TPI in energy?
TPI stands for Third Party Intermediary. It is the regulatory term for any business that acts as an intermediary between a business energy customer and a supplier — including brokers, consultants, price comparison services, and procurement platforms. Ofgem uses TPI as the formal classification. The TPI Code of Practice is a voluntary industry body that sets conduct standards for TPIs.
5. Can I trust energy brokers in the UK?
The UK energy broker market has significant variation in quality and transparency. Some brokers operate ethically, disclose all fees, and act in the client’s interest. Others have historically taken large undisclosed commissions — a practice now the subject of group litigation. The markers to look for are: TPI Code of Practice registration, Dispute Resolution Ombudsman membership, written fee disclosure before the LOA is signed, and clarity on whether they represent multiple suppliers or have preferred-panel arrangements that affect their recommendations.
6. How much commission do energy brokers make in the UK?
It varies enormously, and at the opaque end of the market the numbers can be substantial: in Expert Tooling v Engie, the Supreme Court ordered the recovery of over £130,000 of undisclosed broker commission collected through unit-rate uplifts across five contracts. The customer knew a commission existed but was never told the amount — and that was enough to make it recoverable. Telnergy’s fee is agreed upfront and disclosed in writing before you sign; as a guide, it is typically 1–2p per kWh on electricity and approximately 0.5p–1p per kWh on gas. On larger consumption and multi-site contracts, we agree a lower rate or a capped fee — a p/kWh uplift that makes sense at 50,000 kWh would be indefensible at a million, and we price accordingly.
7. What is the TPI Code of Practice?
The TPI Code of Practice is a voluntary industry code for Third Party Intermediaries in the UK energy market. It sets minimum standards for fee disclosure, sales conduct, complaints handling, and data management. Registration requires businesses to be audited against those standards. It is not a statutory scheme, but it is one of the few independent conduct standards available in the sector before the Labour government’s planned full regulation of TPIs takes effect.
8. What does Telnergy’s Dispute Resolution Ombudsman membership mean for me?
It means you have a formal, independent escalation route if you are dissatisfied with our service and we cannot resolve your complaint internally. The Dispute Resolution Ombudsman can investigate, rule, and require redress. The service is free for you to use. In December 2024, the Ombudsman’s coverage was extended from micro-businesses to small businesses (up to 50 employees), meaning more business customers now have access to this process.
9. What is the Barings Law energy broker class action?
Barings Law has been running a group legal action since 2024 against energy brokers and suppliers who failed to disclose commissions to business customers during 2021–2023. The claim is based on the legal principle that undisclosed commissions in a fiduciary or agency relationship are unlawful. Businesses that contracted for energy in that period and were not told what their broker was being paid may be eligible to join the claim. Telnergy’s model of upfront written disclosure is designed to be the direct opposite of the conduct at the centre of that litigation.
10. Does Telnergy charge any other fees?
No. There are no onboarding fees, no management fees, no renewal fees, and no cancellation fees. Our entire commercial relationship with you is based on the single unit rate uplift paid by the supplier, disclosed before you sign anything. If we cannot find you a better deal than your current one, we will tell you that, and you owe us nothing.
Get a Transparent Quote
If you want to know what a competitive tender looks like — with the fee shown upfront before you commit to anything — get in touch with Telnergy.
We will confirm our fee in writing before you sign the Letter of Authority. No pressure, no surprises, no hidden numbers.
Telnergy Limited is an independent commercial energy consultancy established in 2002, based in Christchurch, Dorset. Ofgem registered TPI · ADR Ref E3561 · CRN 04576876.