Energy Broker Commission - Explained

Energy brokers assess your businesses' energy requirements (e.g. energy consumption, start date, etc.) and use this information to navigate the energy market and secure the lowest prices. Energy brokers can access cheaper rates than if you were to go to the supplier directly. A good energy broker will have developed excellent relationships with their suppliers. In return for gathering a large volume of customers for the energy supplier, the energy supplier will provide cheaper prices.

Energy brokers will add an uplift to the supplier's price. For example, if a supplier had quoted an electricity price of 26p / kWh, the energy broker could then add an extra 0.5p / kWh, making the total price 26.5p / kWh.

The customer usually pays their bills, and the energy supplier is responsible for paying the energy broker.

Previously, there were no laws surrounding energy brokers not disclosing their uplifts to customers, so many immoral brokers were mis-selling overly expensive energy contracts. OFGEM had to get involved in 2024 and made it a legal requirement for brokers to disclose their uplifts to customers.

If you think you have been mis-sold an energy contract and need help determining your next steps, contact us. We will be happy to assist you.

Why use an energy broker?

Some energy brokers provide services other than securing cheaper energy prices, which could be very handy for your business.

• Expert Advice – Get professional guidance to decide which energy contract best suits your business's needs.
• Time Savings – Save time navigating the energy market and contacting suppliers. Let us do all the hard work for you.
• Competitive rates – Unlock the most competitive rates on the market.
• Help with switching – Get help switching suppliers and dealing with any objections or issues which may prolong the process
• Account monitoring— Stay on top of your energy contracts. We will manage your contracts for you and let you know when one is due for renewal, so you don't find yourself stuck with expensive out-of-contract rates.
• Energy Software Management – Purely Energy has released our new energy management software – Purely Insights. Get real-time data on your energy consumption.

How do I know which broker is right for me?

Some energy brokers can be dodgy! Hidden fees and commissions can leave you paying more than you thought you agreed to. Here are some key things to look for in a broker;

• Check their credentials. Accreditation by a relevant government agency or industry association is now a requirement for all energy brokers.
• Do they have a good reputation? Make sure the energy broker has good reviews, e.g. on Trustpilot.
• Ask about fees and charges. A good broker will always be open and honest about any fees or charges for their service.
• Check if they offer any other services. Some other brokers, such as Purely Insight, offer additional services in addition to securing good energy prices.

How can Purely Energy help?

If you think you have been mis-sold a contract or would like help securing the best rates on the market with an energy broker you can trust, then contact us.

If you have any queries about how commission works for energy brokers or would like help lowering your energy costs, contact us at 0161 521 3400 or email us at Info@purelyenergy.co.uk. Alternatively, get a quick quote.

This Article was written by Megan Glover of Purely Energy. If there are any suggestions or questions - Please get in touch with us.