Business energy brokers
Business Energy brokers are all over the UK, and you may wonder whether you should use a business energy broker or go directly to a business energy supplier. In this article, we talk all about the word of energy brokers.
An energy broker is a company that works as an intermediary between you and business energy suppliers.
They search the market on your behalf and collect business energy quotes from suppliers. They will then organise your contract and ensure a smooth transition from your current supplier to your new one.
Business energy brokers earn a commission on contracts they arrange, which the business energy supplier pays.
This is usually paid as an amount per unit of energy (kWh) you use. For example, they may add an uplift to your unit rate or your standing charge.
It’s important to know that the unit rate you are provided by your energy broker, including the uplift, is usually cheaper than a unit rate you would get directly from the supplier, as brokers get preferential rates from suppliers.
Energy brokers can be very trustworthy, and as per Ofgem, business energy brokers are duty-bound under the law of the agency to disclose commissions to their customers. It’s important to ensure you read all of your documents carefully and ask the question regarding commission earnt.
Business energy brokers can get preferential rates from suppliers due to the amount of business that they provide.
Even with their commission added, the rates you receive can be much better than going directly to a supplier.
There’s no harm in checking to see what rate a supplier can offer directly.
Here are some of the frequently asked questions about business energy brokers.
There are currently 1,731 energy brokers registered in the UK – these can be found on the ombudsman services website, and you can search to make sure the energy broker you plan on using is on there.
Business energy brokers do not need to be accredited to trade in the UK.
Ofgem has recently set up a dispute resolution service for any issues you might have when using a business energy broker. Learn more about the complaints process here.