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Energy costs are one of the biggest controllable overheads for small businesses, and with over 70 active business energy suppliers in the UK market, knowing how to find the right deal really matters. The question most SME owners arrive at sooner or later is whether to use an energy broker or spend hours comparing tariffs themselves.
Neither route is wrong, but the right answer depends on the size of your business, how much energy you use, how complex your contract situation is, and how much commission you're prepared to pay.
What Does a Business Energy Broker Do?
A business energy broker (sometimes called a Third Party Intermediary (TPI)) acts as an intermediary between your company and energy suppliers. Rather than you contacting multiple suppliers directly, the broker approaches their panel of suppliers on your behalf, compares quotes, and presents you with a recommended contract.
Business energy brokers typically handle:
Gathering quotes from a panel of suppliers
Comparing unit rates, standing charges, and contract lengths
Handling the paperwork and Letter of Authority (LoA)
Managing the renewal process
Sometimes, providing ongoing account management and advice
The key word is ‘panel’. Most brokers don't have access to every supplier in the market. Instead, they work with a select group of trusted partners. If a particular supplier isn't on that panel, you won't see their rates. This isn't necessarily a deal-breaker, but it's worth understanding.
Total active suppliers: 70+
Typical online platforms: 8-20 suppliers
Typical broker panels: 10-30 suppliers
How Energy Brokers Make Money
The majority of UK energy brokers don't charge an upfront fee. They're paid a commission by their partner - sometimes called an ‘uplift’.
Commission rates vary substantially. According to Connection Technologies (April 2026), typical broker uplifts in the UK are:
Micro-businesses (under 25,000 kWh/year): 0.8p-2.5p per kWh
Small businesses (25,000-100,000 kWh/year): 0.5p-2.0p per kWh
Larger businesses: 0.1p-0.5p per kWh
To put that into context, a small business using 50,000 kWh per year with a 1.5p uplift is paying £750 in broker commission annually as part of their unit rate.
Since October 2024, energy suppliers have been required to disclose TPI commission to microbusiness customers. This is an improvement for transparency, but you can still ask for a written commission disclosure from a broker before signing anything.
Regulation of Energy Brokers in the UK
For a long time, the UK market had approximately 3,000 brokers operating under no mandatory licensing, which allowed pressure selling, hidden commissions, and mis-selling.
That has now changed. In October 2025, the Government announced it would appoint Ofgem as the formal regulator for TPIs, including energy comparison services for businesses. As stated in an official UK Parliament written statement on 23 October 2025, Ofgem will gain powers to set conduct rules, investigate misconduct, and enforce compliance, with TPIs required to register and meet ‘fit and proper’ standards.
Comparing Online Yourself
Online comparison is straightforward in principle. You enter your business details, consumption figures, and current contract information, and receive a set of quotes from suppliers on that platform's panel.
The advantages are:
Immediate visibility of live market rates
No commission embedded in the quotes you see
No pressure from a salesperson to accept a particular deal
Full control over the comparison and decision timeline
There are also limitations. Online platforms typically show only the suppliers with whom they have commercial relationships. You won't necessarily see bespoke or negotiated rates, and there's no one advising you on contract timing, flex products, or whether your current deemed rate means you're overpaying.
If you're on a deemed contract energy rate, which can cost up to 80% more than a negotiated deal, online comparison is still the fastest way to get off it.
For straightforward situations, a single-site business with modest consumption and a standard contract approaching renewal, comparing online is often sufficient.
Broker vs Online Comparison
Here's how the two approaches compare across the factors that matter most to small business owners:
Factor | Online Comparison | Energy Broker |
Speed | Very fast | Slower |
Coverage | Limited | Limited |
Commission | None embedded | 0.5p-2.5p/kWh |
Advice | None | Yes |
Management | DIY | Handled |
Best For | Micro/small business | Higher usage, complex contract |
Renewals | Varies | Often included |
Transparency | Rates visible | Request disclosure |
Businesses that save the most through a broker tend to be either those coming off expensive default or out-of-contract rates, or those with multiple sites and significant consumption. According to Advantage Utilities, SMEs regularly save 15-30% when negotiating via a broker, and in cases where a business has been left on a variable or rollover rate, savings above 40% are possible.
The broker’s commission doesn't negate those gains; it reduces them. Whether the result is better than self-serve depends entirely on whether the broker can access rates that the business owner couldn't find online.
Red Flags with Energy Brokers
The incoming Ofgem regulation will help prevent poor practice, but until full enforcement is in place, these warning signs should make business owners cautious:
Pressure to sign quickly before a deal expires
Refusal to disclose commission in writing
Refusal to tell you which suppliers are on their panel
Unusually high commission figures with no justification
No mention of the Energy Ombudsman as a complaints route
Claims to compare ‘the whole market’
A reputable broker will confirm the size of their supplier panel and give you a clear cooling-off period before your new contract goes live. If any of these are missing, it’s time to walk away.
Hidden Costs in Business Energy Contracts
Businesses often underestimate the impact of these costs:
Broker commission: £300-£10,000+/year depending on usage
Out-of-contract (deemed) rates: typically 40-80% higher
Auto-rollover contracts: often 5-20% above competitive rates
Early termination fees: £500-£5,000+
When Does an Energy Broker Make Sense?
A broker is likely the better route if:
Your business consumes more than 50,000 kWh of electricity or gas per year
You operate multiple premises and want contract management
You don’t have time to research live market rates
You're approaching contract end and want some advice
Your current contract is complex
Self-serve online comparison is probably sufficient if:
You run a micro-business with relatively low, predictable consumption
Your contract is straightforward
You have time to review a handful of quotes and make a decision
You want visibility of the rates you're paying without any uplift
One approach used by SMEs is a hybrid: compare online first to establish what rates are available in the market, then approach a broker to see whether they can improve on those figures. If the broker can't beat what you've already found after factoring in their commission, you have your answer.
It's also worth noting that platforms like BusinessComparison offer a sensible middle ground. Through a partnership with energy comparison specialists, SMEs can access comparisons that combine the transparency of free online tools and expert guidance with the support of friendly, experienced advisors who handle the quote process on your behalf.
Before Speaking to an Energy Broker
Whether you go online or contact a broker, having this information ready will speed things up:
Your MPAN (electricity) and MPRN (gas) meter point numbers
Your current supplier and contract end date
Your annual consumption in kWh (or recent bills)
Your business name, address, and registration details
A Letter of Authority (LoA), if you want the broker to negotiate on your behalf
Not sure what your consumption looks like relative to other businesses in your sector? The average energy consumption for businesses varies considerably by industry and premises size, so benchmarking yours is a useful first step before entering the comparison process.
Good Practice for Both Routes
A few principles apply regardless of the route you choose:
Don't Wait Until Your Contract Ends
Most business energy contracts allow you to start comparing and lock in a new deal 6-12 months before the end date. Waiting until the last minute limits your options and can leave you rolling onto expensive out-of-contract rates.
Understanding whether to fix your energy business rates early puts you in the strongest negotiating position.
Ask for Commission Disclosure
Since October 2024, this has been mandatory for microbusinesses, but it's good practice to ask for it regardless of your size. You have a right to know exactly what the broker is earning from your contract.
Compare Regularly
Energy market rates shift with wholesale prices, and what was a good deal 18 months ago may not be now. Keeping an eye on average UK business energy prices helps you decide when to act.
Watch for Rollover Contracts
Some suppliers automatically move you onto a new contract at the end of your term, often at worse rates. A good broker will flag this, but so will a good online comparison platform.
With Ofgem taking on TPI regulation and transparency improving across the market, both routes are becoming more reliable. But the fundamental question still comes down to your business's complexity, consumption level, and appetite for spending time on procurement versus paying a modest commission for someone else to handle it.
For a clear picture of what's available to your business right now, comparing business energy deals across leading UK suppliers is the most reliable starting point.
