How to choose a business energy broker (and check they are trustworthy)

Choose a broker by checking how they are paid, which suppliers they actually compare, whether they belong to a dispute scheme, and whether they will put all costs in writing before you sign. Be wary of anyone who promises the "cheapest" deal without showing their workings. This site is independent, takes no commission and does not rank brokers.

What a broker is, and is not

Ofgem describes brokers as one kind of third party intermediary (TPI): firms that advise on buying energy or managing needs. Your supply contract is always with a supplier, not the broker. You do not have to use a broker, even if one calls you first. Some brokers check the whole market; others represent one supplier or a small group. Ofgem also stresses that a TPI is not required to find you the best deal.

Words like "consultant" and "advisor" have no special legal meaning here. What matters is how the firm is paid; see broker versus energy consultant.

Check 1: how are they paid?

Ofgem says a TPI can be paid:

• Directly, by you, such as a flat fee or a per-deal charge; or
• Indirectly, by the supplier, with the cost built into your rates.

Rules require broker costs to be shown in the contract Principal Terms for microbusinesses (from 1 October 2022) and for all non-domestic customers (contracts from 1 October 2024). The amount is a total in pounds and pence for the full term, and estimates are allowed. Fees you pay a broker directly do not have to appear in the supplier's Principal Terms, so ask the broker to state them in writing. Read more in how broker commission works.

Check 2: dispute scheme membership

Suppliers may only deal with brokers who belong to a qualifying dispute settlement scheme (QDSS): from 1 December 2022 for microbusiness contracts and 19 December 2024 for small business contracts. Recognised schemes include the Energy Ombudsman and the Utilities Intermediaries Association (UIA); Citizens Advice also lists the Dispute Resolution Ombudsman. Ofgem itself does not approve schemes, so ask the broker which one they use and confirm it with your supplier. See what is a QDSS.

Check 3: regulation and codes

Brokers are not directly regulated by Ofgem yet. Ofgem's July 2026 blog says it is preparing to regulate and has no formal powers yet, with initial proposals expected in 2027. Meanwhile, brokers can sign up to voluntary codes such as the RECC TPI Code or the UIA code, and Ofgem has published six voluntary principles for brokers: honesty, respect, accuracy, transparency, customer focus and professionalism. We have not reviewed the detailed contents of each code, so ask the broker which code it follows and what that code commits it to. A code is a good sign but not a guarantee. More in are energy brokers regulated?.

Check 4: which suppliers will they quote?

Ofgem recommends asking: which suppliers will you approach, how many offers will you show me, how will you help me switch, what will you do during the contract, and how are you paid? A broker unwilling to say which suppliers they use, or who shows only one quote, is giving you a partial picture.

Check 5: the paperwork

• Get quotes in writing, with contract length, rates, standing charge, end date, termination terms and the broker's cost.
• Read any letter of authority carefully; see is it safe to sign one?.
• Remember there is no cooling-off period, and a verbal agreement is binding, even by phone.

Worked example: comparing two quotes

A shop uses 30,000 kWh of electricity a year. Broker A quotes 27.0p/kWh and discloses a £900 broker cost over a three-year term. Broker B quotes 26.5p/kWh with the cost "included". Over three years the unit-rate gap is:

• Broker A: 30,000 x 3 x £0.270 = £24,300 (broker cost already in the rate; £900 is part of this figure)
• Broker B: 30,000 x 3 x £0.265 = £23,850

B is £450 cheaper before standing charge and tax, but only if its standing charge, term and fees are no worse. Ask B to state its cost too. The numbers are hypothetical, to show why you compare totals, not just a headline rate.

Red flags

• Cold calls that claim to be "from your supplier" or "from Ofgem". Ofgem does not make such calls; see cold calls about business energy.
• Pressure to agree today, or refusal to give terms in writing.
• Claims to be able to recover "undisclosed commission" for a fee. Ofgem warns scammers say it has forced brokers to repay; it has no such power.
• No answer on how they are paid.

"Cheapest" and "best" broker searches

Lists of the best or cheapest brokers are frequently marketing, often paid for by the firms listed. No independent source we can verify ranks brokers on price. Compare actual quotes instead, including a quote directly from suppliers where they offer one; see broker vs direct vs comparison site.

If something goes wrong

Complain to the broker first. Micro and small businesses can then use the broker's QDSS; the Energy Ombudsman also covers energy brokers. See broker mis-selling and what to do if a broker mis-sold my contract.

Ask for a sample of the process

A trustworthy broker should be able to explain the whole journey in plain terms: how they collect your usage data, how they request quotes, how long quotes stay valid, how you will accept one, what happens at switch and how they will remind you before the contract ends. Quotes from suppliers often expire within hours or days, so a good broker will say how that works and not rush you into agreeing the same day. Ask whether they will give you a copy of every quote they obtained, not just the best one. Seeing the spread shows how competitive the winning offer is, and whether the broker is really shopping the market.

It is also sensible to check the firm exists as it says it does: look for a company registration, a physical address and consistent contact details, and be careful of anyone who will not give them. Ask the broker which scheme it belongs to, and ask your supplier to confirm that the broker is registered with a qualifying scheme before you sign a letter of authority.

Next steps

1. Write down your annual usage and contract end date.
2. Ask two or three brokers the Ofgem questions above.
3. Get every cost in writing, then compare totals.