Energy broker vs going direct vs using a comparison site

There are three common ways to buy business energy: through a broker, directly from a supplier, or via a comparison site. None is guaranteed to be cheapest. Each has a different coverage of the market, a different way of being paid, and different protections if things go wrong.

The short comparison

	Broker	Direct to supplier	Comparison site
Who pays them	Often the supplier (built into your rates), or you directly	You pay only through your rates	Often commission from suppliers or brokers; check the site's own funding statement
Market coverage	Varies: some check widely, some use few suppliers	One supplier only	Suppliers that partner with the site
Effort for you	Low: they chase quotes	Medium to high: you request each quote	Low to medium
Cost disclosure	Must be in Principal Terms if indirect	Sales staff commission need not be disclosed	Check how the site is funded
Complaints route	Broker, then its dispute scheme	Supplier, then Energy Ombudsman	Site, then supplier

The table is a summary of the principles in Ofgem's guidance, not a measured ranking of prices.

Using a broker

Good for: multi-site businesses, awkward meters, people without time, or those wanting renewals managed.

Watch for: commission baked into the rate; partial market coverage; pressure on length of term. Ofgem notes a broker is not required to find the best deal, and brokers can represent a single supplier or a few. Make them state their cost. Our broker checklist covers how, and commission explained shows how the cost reaches your rate.

Since 1 December 2022 suppliers have only been able to use brokers that belong to a qualifying dispute scheme for microbusinesses (19 December 2024 for small businesses), giving you somewhere to complain if things go wrong.

Going direct to suppliers

Good for: simple needs, one or two sites, and owners happy to ring around.

Watch for: you only see that supplier's prices, so you have to repeat the process for each. Business prices are mostly not published, and suppliers choose which customers to accept, for example based on credit rating or size. Ofgem points out that supplier in-house sales staff do not have to disclose their commission. A direct quote may or may not be cheaper than the same supplier's price through a broker, since brokers can add an uplift or negotiate terms, so ask for a quote both ways if you can. Check the supplier's pages for each firm, such as our list of UK business energy suppliers.

Using a comparison site

Good for: a quick, indicative view of prices from partner suppliers.

Watch for: many sites are paid by suppliers or brokers when you sign, so the order and coverage of results can reflect commercial arrangements. Look for the page where the site explains how it makes money. See how comparison sites choose suppliers. Some route enquiries to brokers or call centres. Treat displayed prices as indicative and confirm them in a written quote. Read comparing business energy and is comparing free?.

Is it cheaper to use a broker?

Sometimes yes, sometimes no. A broker may have access to supplier rates you cannot get, or negotiate a better term; the commission may also push your rate up. The only reliable test is to compare total cost over the contract term across all routes.

Worked example: compare totals, not rates

A salon uses 12,000 kWh of electricity a year and is offered three written quotes for two years. Rates are hypothetical, with standing charges the same at 58p a day (annual £211.70).

Route	Unit rate	Two-year cost
Broker (cost included in rate)	27.5p	12,000 x 2 x £0.275 = £6,600 + 2 x £211.70 = £7,023.40
Direct	28.0p	12,000 x 2 x £0.28 = £6,720 + £423.40 = £7,143.40
Comparison site	27.8p	12,000 x 2 x £0.278 = £6,672 + £423.40 = £7,095.40

Here the broker route is £120 cheaper than direct over two years (£7,143.40 - £7,023.40), but it would not be if the broker's term were longer or fees were charged separately. The sums are made up to show the method; always add standing charges, exit terms and any fees. Our cost calculator can help.

What stays the same on every route

• Your contract is with the supplier.
• There is no price cap on business energy and no cooling-off period.
• Verbal agreement can be binding.
• You can use the Energy Ombudsman for supplier disputes if you are a micro or small business.

Also see is it cheaper to go direct or use a broker? and how to switch.

Questions to ask on any route

• What is the unit rate, the standing charge and the contract end date?
• Is this price fixed, or can parts of it change during the term?
• Is there a broker or introducer cost built into the rates, and what is the total?
• How long is the quote valid, and what are the exit terms?
• Who do I contact, and how do I complain, if there is a problem?

The answers let you compare like with like. If someone cannot or will not answer, treat that as information about the offer.

If something goes wrong with a broker

Complain to the broker in writing first. Suppliers can only work with brokers that belong to a qualifying dispute scheme for micro and small business contracts, and the Energy Ombudsman handles complaints about brokers that are signed up to it as well as about suppliers. Ask the broker at the outset which scheme it belongs to, and note the answer with your quote. Ofgem does not yet regulate brokers directly, so that scheme is your main route to an independent decision.

Using more than one route

You are free to mix routes. Many owners ask their current supplier for a renewal price, request a broker's quote and run a comparison-site search, then take the lowest total with acceptable terms. Be aware that some quotes expire quickly and that approaching several brokers about the same supplier can cause confusion over who is entitled to submit the deal, so tell each one who else you have spoken to. Keep a simple table of each offer with rates, term, broker cost and exit terms. The exercise takes an hour or two and, as the worked example shows, differences of a few pence per kWh can be worth hundreds of pounds over a contract.

Next steps

1. Decide how much time you have and how complex your sites are.
2. Get at least one quote from each route if feasible.
3. Compare total cost over the term, plus exit terms, then choose.