EnergyScope
Broker fees and commission
Commission may be charged separately or reflected in the rate. Do not add embedded uplift twice when comparing costs.
Broker fees or commission can be presented in different ways. When comparing costs, separate what is reflected in the unit rate, charged separately or treated as another cost. Do not count the same amount twice.
Clarify the fee explanation
- Who pays: the business, supplier, a third party or more than one party.
- How it is calculated: fixed amount, usage, term, percentage or another method.
- When and how it is disclosed: request a written explanation of fees, commission or related arrangements.
- Comparison basis: confirm matching usage, term, tax basis and included/excluded costs.
Keep these records first
- Written fee/commission explanations and each version.
- Rates, standing charges and other stated costs in each quote.
- Usage, days and tax assumptions used for comparison.
Ofgem · UK
Relevant UK rules and Ofgem guidance
Protections depend on the business type, contract and payment arrangement. Ofgem does not currently license brokers; its 2026 good-practice page also says new rules are still being developed. The points below separate current law/supplier requirements from official guidance, and are not legal advice for an individual case.
- Misleading marketing and identifying the caller
- Ofgem says brokers/TPIs must comply with the Business Protection from Misleading Marketing Regulations 2008. Its TPI guidance says they should identify themselves and the purpose of the call at the start; suspected criminal breaches can be handled by Trading Standards or the CMA.
- Marketing and personal data
- Ofgem’s good-practice guidance lists PECR 2003 and the Data Protection Act 2018. Those rules apply to relevant marketing and personal-data activity; this does not mean every contact is automatically unlawful.
- Commission and Principal Terms
- Where broker/TPI costs are added by the supplier to your bill, Ofgem says all businesses should receive that cost information in the Principal Terms and on request. If the business pays the broker directly, the supplier’s Principal Terms do not have to state that direct charge.
- Supplier protections for microbusinesses
- A microbusiness’s supplier must provide clear contract information, with additional evergreen termination-notice and renewal-information requirements. These are supplier protections; they do not mean a broker is licensed by Ofgem.
Frequently asked questions
Must a broker search the whole market?
No. Ofgem’s TPI guidance says some TPIs represent only one or a small group of suppliers. Ask the broker to state its search scope and exclusions in writing.
Will commission always appear as a separate line in the quote?
Not necessarily. First establish whether you pay the broker directly or indirectly through a supplier bill. Where costs are added to the bill, ask for the relevant Principal Terms and a written explanation.
Can I change my mind after agreeing by phone?
Business energy contracts generally have no cooling-off period and an agreement by phone may be binding. Do not treat this page as an individual assessment; request the complete documents and written confirmation first.
Are brokers licensed by Ofgem?
Ofgem says it does not license brokers/TPIs. If a broker is paid by a supplier, Ofgem recommends checking its membership of an approved redress scheme before using it.
What information should I ask to be told?
Ask for the broker’s identity and who it represents, search scope, services, principal contract terms, the amount and payment route for fees/commission, and the complaint or redress route.
What if commission or terms are unclear?
Ask for a written explanation and the full terms before agreeing. Do not treat unexplained costs as zero or assume a quote covers the whole market.