Transparent Energy Broker Commission: Know What You Pay

A business energy quote should make two things clear: what the contract costs and how the intermediary arranging it is paid. This guide covers business energy brokerage in Great Britain.

Transparent broker commission means more than saying that a fee exists. For a useful comparison, you need to understand the calculation, the expected amount and whether it is already included in the prices shown.

How do business energy brokers get paid?

A broker may charge your business directly, receive payment through the supplier, or use a combination of arrangements. Supplier-paid remuneration may be recovered through the energy price. No upfront invoice therefore does not automatically mean the service has no cost to you.¹

Ask about the actual arrangement for your quote. Do not assume every broker uses the same model or that a supplier's direct offer will necessarily be cheaper. Compare the complete offers available to you.

What does commission per kWh mean?

Some arrangements express commission as an amount per kilowatt-hour. Consider this illustrative example—not Openlight's fee or a market average:

Actual consumption-based commission changes with the energy used. The example excludes VAT and any separate fees.¹

If commission is already included in the quoted unit rate, show it separately for clarity—but do not add it again when calculating the total contract cost.

What should transparent broker commission look like?

Before agreeing to a contract, ask for a written explanation that answers four questions:

How are you paid? Establish whether there is a direct fee, supplier-paid commission or both, and what services that payment covers.

How much is it likely to be? Request the calculation basis and an expected total over the proposed term, using the same consumption assumptions as the quote. Label an estimate as an estimate.

Is it included in the comparison? Confirm which displayed rates already contain the payment, and identify any separate charges. A low unit rate is not a complete comparison when other costs sit outside it.

Which offers were considered? Ask which suppliers were approached and whether the recommendation is limited to a particular panel or route. Avoid treating a panel comparison as proof of the cheapest deal across the entire market.

Ofgem's guidance states that intermediary costs added through supplier bills must be disclosed in the contract's Principal Terms and on request to business customers. Ask separately about direct fees under any broker agreement.¹

Does a lower commission guarantee a better deal?

No. Consider two hypothetical contracts at identical consumption: one has lower commission but higher supply rates; the other has higher commission but a lower overall cost. Commission alone would not tell you which contract is cheaper.

The sensible comparison is the complete cost and terms, with remuneration visible. Also consider whether the proposed services are useful: reviewing your consumption profile, explaining contract differences, handling the agreed procurement process or providing defined ongoing support.

Ask for those services to be described in writing rather than relying on a general promise to “manage everything”.

What should I ask about an existing brokered contract?

Request the signed contract, Principal Terms, commission disclosure and any separate service agreement. Identify what was disclosed, what was agreed and which charges were included in the price.

The existence of commission alone does not demonstrate that your energy bill is wrong. A concern about disclosure and an arithmetic billing error are different questions and may need different evidence. Avoid assuming that every old brokered contract creates a refund entitlement.

Openlight's approach to broker commission

Our approach is to show you how we are paid alongside the contract comparison, before you decide. We explain the quotes considered, the relevant charges and the terms that affect your business.

The objective is not to hide the fee inside a headline saving. It is to help you assess the offer with the payment structure visible.

A contract that fits. Commission you can understand. The decision stays with you.

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Our online bill checker currently covers business electricity. Information about gas brokerage in this guide does not imply that the checker accepts gas bills.

Related guides: Compare business energy prices · Business energy bill errors