A business energy broker may charge a direct fee, receive commission through the supplier, or use a combination. Understanding the amount, calculation and service covered helps you compare proposals. A fee paid through your energy price is still relevant to your decision, even if the broker does not send you a separate invoice. This guide concerns business supplies in Great Britain.
Ask how the broker will be paid
Ofgem explains that brokers charge for their services: some charge upfront, while most receive commission from the chosen supplier. The arrangement should be explained before you commit.
Ask for a written answer to three questions: who pays the broker, how the amount is calculated and whether you will receive any separate invoice. “The supplier pays us” does not tell you the full calculation or whether remuneration is included in the quoted price.
Distinguish a supplier's energy offer from the broker's own service agreement. Review both where they exist. Keep the explanation alongside the quotation so that the business can understand it later without relying on a sales conversation.
Understand the different charging arrangements
| Arrangement | What to clarify |
|---|---|
| Direct fee | The amount, payment date, services included and any renewal or cancellation terms. |
| Commission within the supply price | The calculation, expected amount over the term and whether it varies with usage. |
| A combination | Which costs are already in the quotation and which will be billed separately. |
For contracts signed from 1 October 2024, Ofgem extended the requirement for principal terms to display broker fees to all non-domestic customers, with suppliers required to make the information available on request. Ask for the relevant principal terms and an explanation of anything unclear.
Do not assume that an old contract follows the same disclosure arrangements, or that an estimated commission figure is a fixed total regardless of consumption. Ask which assumptions were used.
How much does commission per kWh add up to?
Hypothetical illustration: a broker explains that its commission is 0.5p per kWh within the quoted price. Assume consumption of 100,000 kWh a year for three years, with that commission rate unchanged.
Convert pence to pounds, then calculate:
£0.005 × 100,000 kWh × 3 years = £1,500.
That is an illustrative amount based on invented assumptions, not a typical market fee or a BBA quotation. Actual remuneration could differ with consumption and the agreement. Ask whether VAT or any other fee applies.
If the commission is already included in the supplier's quoted unit rate, do not add it to the quotation again when comparing totals. You need to understand the remuneration and the complete customer cost without counting the same element twice.
Compare the service alongside the total price
Ask what the broker will actually do: gather quotations, explain terms, manage the supplier enquiry, check bills or assist with meter projects. Confirm any ongoing support and exclusions rather than assuming every service is included.
Use the same supply details, consumption and contract term when comparing offers. A smaller disclosed fee does not by itself establish the lowest overall cost or the most suitable contract. Equally, a wider service description needs enough detail for you to judge whether it meets your needs.
BBA Energy's services page describes its procurement, bill-validation and meter-coordination work. Ask which services and remuneration apply to the particular proposal you are reviewing. Use the quote-comparison guide to put competing offers on a consistent basis, then the renewal checklist for the final checks before signing.
Resolve unclear charges before accepting
Pause if the explanation, broker agreement and supplier paperwork do not match. Ask the broker and supplier to reconcile them in writing. Where an existing charge is disputed, retain the quotation, principal terms, service agreement and correspondence, then use the relevant complaints process.
Check the broker's redress-scheme membership and your business's eligibility if independent dispute resolution may be needed. The Energy Ombudsman explains its broker scheme; not every dispute falls within the same route.
For practical checks on pressure, permissions and disputed acceptance, read avoiding an unwanted business energy contract. A clear fee explanation is one part of an informed agreement, alongside the price, duration and authority to accept it.