How do I check whether a broker is trustworthy?

Brokers aren't licensed by Ofgem, so check them yourself: confirm they belong to a dispute scheme, ask in writing how they are paid and which suppliers they compare, and read the Principal Terms before agreeing. Walk away from anyone who pressures you to sign by phone.

Last reviewed · By the Biz Energy editorial team · How we check facts

Anyone can call themselves an energy broker. Ofgem does not license them, and direct regulation by Ofgem is still being prepared, so the checks fall to you.

1. Confirm the dispute scheme

Where a broker is paid by a supplier, it must belong to a qualifying dispute scheme. Citizens Advice names the Energy Ombudsman, the Utilities Intermediaries Association and the Dispute Resolution Ombudsman. Ask which one, then check that scheme's member list. If the broker isn't registered you may not be able to complain through the scheme. See what a QDSS is.

2. Ask Ofgem's five questions

  1. Which suppliers will you approach?
  2. How many offers will you give me?
  3. What will you do to help me switch?
  4. What services come with the contract?
  5. How am I charged, directly or indirectly?

Also ask how much of the market they search. Not all do.

3. Look for a voluntary code

Ofgem's market review mentions voluntary codes run by RECC and the Utilities Intermediaries Association. Membership isn't compulsory or a guarantee, but it shows the broker has signed up to standards.

4. See the commission in writing

Costs must be in the Principal Terms. Compare the figure with what you were told. See how to find out what your broker is paid.

Warning signs

  • Claiming to be your supplier, Ofgem or "the government".
  • Pressure to agree on the call, or "this price ends today".
  • Refusing to put quotes in writing or name the supplier.
  • Vague answers about fees.
  • Asking you to sign a broad letter of authority before you have seen a quote.

A verbal agreement can bind you, and business contracts have no cooling-off period. Never agree on the phone unless you have seen written terms.

Example

A caller offers "a rate 15% below market" but won't say which supplier or the contract length. You reply by email asking for the supplier name, term, unit rate, standing charge and total broker cost. A trustworthy broker sends that the same day; an evasive one goes quiet.

What is changing

Ofgem said in July 2026 that it is preparing to regulate brokers but doesn't yet have formal powers; proposals are expected in 2027.

A five-minute checklist

  1. Search the firm's name with "complaints" and read recent patterns, not single reviews.
  2. Check it has a real UK address, company number and website that matches its emails.
  3. Call the scheme it names to confirm membership.
  4. Ask for a sample Principal Terms showing broker costs.
  5. Sleep on it: legitimate offers survive a day's wait, and a price movement is not a reason to skip checks.

Next steps

Read the full guide to choosing a business energy broker, and see whether energy brokers are regulated.

Sources

  1. Ofgem: Third party intermediaries - what your microbusiness needs to know
  2. Citizens Advice: Problems with your business energy supplier or broker
  3. Ofgem: Third-Party Intermediaries Market Review - Call for Input (June 2026)
  4. Ofgem: Third party intermediaries - supporting better outcomes for consumers

General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.