What is a business energy broker?
What is a business energy broker?
The main role of a business energy broker is to help businesses gather quotes for their energy contracts, which can be a time-consuming and confusing process for businesses to do themselves.
Using a business energy broker vs. going direct to suppliers
There are various advantages to getting your new business energy contract via a commercial energy broker versus going directly to business energy suppliers.
| Using a business energy broker | Going directly to business energy suppliers |
|---|---|
| They save you time researching and contacting suppliers | You have to spend time contacting suppliers to get individual bespoke quotes |
| They can use their experience to get you a better deal | You might end up spending more than you need to |
| They keep you in the loop about your renewal dates | You have to remember when your contract is ending |
| They don't work with all providers so it's unlikely you'll get a full market quote | You can - if you have time - get quotes from every supplier |
| Best for those who are due to renew and want to save time | Best for those who happy to spend time doing their own research for peace of mind |
How business energy brokers make money
Business energy brokers generally earn commission from suppliers when they complete a deal. The supplier passes this cost on to the customer, either as a small add-on to unit rates or as an upfront cost.
It's worth asking for transparency about how this cost works and what's expected from you before you sign any contracts, because it can differ from broker to broker.
How do I choose a business energy broker?
There are around 3,000 business energy brokers operating throughout the UK, so it's important you choose a broker that you're comfortable using and that meets your needs as a business.
Things to look for include:
Things to look for
- Extensive supplier partners
Each broker will have partnerships and relationships with different suppliers, which should be stated on their websites. If there are any suppliers you particularly want to get quotes from or avoid, it's worth looking to see which brokers have the partnerships you're looking for.
- High level of knowledge
Does the broker seem like a business energy expert? Does it have a lot of information about business energy on its website or is it only a couple of pages? If it seems competent and expert, it's probably a good bet.
- Transparency
The business energy broker market is unregulated, which means you could inadvertently employ an unscrupulous operator which charges hidden fees. Look for signs of transparency on its website - are fees clearly laid out? How does it earn commission?
- Strong overall support
The most reputable brokers don't simply organise the new contract and consider the job done. They provide support between the agreement and the contract actually starting (which can be the best part of a year) and let you know when the contract is nearly over so you can start looking for a new one.
Things to avoid
- Pressure tactics
Pressure tactics - for example, if a broker suggests that prices are only available today - don't indicate scrupulous practices.
- Vague pricing
Prices should always include unit rates and standing charges.
How much does it cost to use a commercial energy broker?
The cost of using a commercial energy broker varies between brokers and can also depend on the deal and supplier you sign up to.
You may not pay an upfront fee to a commercial energy broker, but you may pay via a small add-on to the cost of each unit of energy you use. It's important to be clear about how payment will be taken before signing anything.
How much could a business energy broker save my business?
It depends on the price you’re currently paying and the deals that a broker can access. Brokers can save you time and admin, but the ultimate cost of your energy depends on your business needs and overall usage.
If you haven’t switched tariffs recently, you’re likely missing out on substantial savings that a business energy broker could help you to get.
We work with energy suppliers from across the whole market, from bigger names to up-and-coming providers. And if you're not within your renewal window, we can monitor the situation and get back in touch with a great business gas quote and business electricity quote when the time is right.
Give us a call today on 0800 188 4930 to find out how much you could save.
How much should my business pay for energy?
Every business uses energy differently and has different energy efficiency measures in place, so there’s no way of definitively saying how much energy your business should be using or working out the rates you should be paying.
What affects my quote?
- The type of business - this often dictates the energy usage pattern. Businesses that consume most of their energy when there is less demand from the network will have lower rates
- Your business’s credit rating - this impacts the overall cost of your energy and the suppliers available to you
- The amount of energy your business uses in a year - a higher volume normally means a lower price, but if unit rates decrease, the daily standing charge can increase. Always check your overall offer for the cost incurred for a full year, rather than unit prices
- The size of your business - this determines your energy buying power. If you compare business gas brokers and business electricity brokers, you’ll see that there are some that specialise in group energy buying services for small and medium businesses, but they’re rare
- Your location - energy prices vary around the country. Scotland has some of the highest prices in the UK, whereas the Midlands has some of the lowest
- The length of your contract - on average, each year you extend your contract adds an additional 6% to the unit cost, whilst 2%-6% is deducted from the standing charge. Negotiation plays a part in determining contract length so it’s important to both compare business electricity brokers and compare business gas brokers to find a representative that’s a leading expert in their field.
Using the same supplier for electricity and gas may get you a discount. This is another reason to properly compare business gas brokers and business electricity brokers to find one that works with many different suppliers.
The only way to find out how much you should be paying is to run a business energy comparison, but we’ve compiled a list of average usage figures to help you get a rough idea of how much you should be paying for your business energy according to company size. You should keep this in mind when you come to compare deals.
How to switch business energy with Uswitch
Using Uswitch to compare business energy deals and switch can help to save you both time and money. Unlike when switching with other brokers or going directly to suppliers, we only need your postcode to kick off your comparison. And we compare rates from our panel of trusted UK suppliers in one phone call.
If you go directly to the suppliers, you'll need to have the following information to hand:
- Your MPRN to help the supplier locate your supply.
- Your energy consumption and how much you currently pay
- When your switching window opens and your contract end date
And you'll need to run through all these details with each supplier you contact.
Remember, you need to compare rates from a range of suppliers to make sure you're on the best rates. This can be very time consuming and quite frustrating. And if you need to switch both business gas and business electricity suppliers, you'll need to go through the whole process twice
If you've got the time and patience to do it yourself, once you've agreed a new deal then need to let your current supplier know you're leaving. Your switch will take place when your existing contract ends.
Or you can let our energy experts do all the hard work for you. We use smart data to cut the amount of time it takes to gather the information we need to compare quotes. And we only need to take your information once to compare business energy prices from our panel of trusted UK energy suppliers.
Give us a call now on 0800 188 4930 or pop your postcode in the box on the right and we'll get back to you.
How Uswitch business energy comparison works
Your comparison is free.
If you decide to switch, we’ll be paid a commission by the new supplier that is included in the prices we quote.
We find your details
Just enter your business address and we'll use industry data to accurately find and understand your energy usage.
We talk through your quotes
One of our UK-based experts will search our supplier panel and give you a call to talk you through the results on screen.
You choose the deal you want
With all the information to hand, you choose the deal that best suits your business and we'll handle the switch for you.
Compare UK business energy suppliers with Uswitchforbusiness
Compare prices from trusted UK business energy suppliers and get your next business energy deal in minutes.
By clicking ‘Compare business tariffs', you agree for us to search your current energy supplier and usage through industry-held data.
FAQs
How do I check if a broker is legitimate?
If your business energy broker is paid by your supplier, then it must be registered with one of the following organisations:
- the Energy Ombudsman
- the Utilities Intermediaries Association (UIA)
- the Dispute Resolution Ombudsman (DRO).
You can check these companies' registers to see if your broker is on there. If it is, it's held to certain professional standards of conduct.
Are business energy brokers regulated?
Brokers in the UK don't need a formal licence. It's a good idea to check if a broker you're thinking of using is a member of an organisation like the Energy Ombudsman, Utilities Intermediaries Association (UIA) or Dispute Resolution Ombudsman (DRO). This indicates a willingness to practice with transparency and integrity.
Is it cheaper to go direct to suppliers?
In theory, yes - you probably won't find better prices, but you won't be paying any commission fees to brokers.
Why do brokers ask for my usage and meter details?
Brokers need these details to provide you with the most accurate quotes.
What if I feel pressured or think a quote is misleading?
If you think a quote is misleading, you can check directly with the supplier. In the event of feeling pressured, you're free to walk away at any point, but it can be more difficult after you've signed a contract because there's no cooling-off period for business energy.