How much commission do energy brokers take?
There is no standard rate. Broker commission is usually built into your unit rate or standing charge by the supplier, or charged to you as a direct fee, and it varies by broker and contract. Since 2022 the total for a microbusiness contract must appear in your Principal Terms.
We have not found a reliable, independent figure for what brokers typically earn, so we won't quote one. What can be said is how the money flows and how to see your own number.
How brokers get paid
Ofgem describes two routes:
- Indirect: the supplier pays the broker, and the cost is added to your bill through your rates. You never write a cheque.
- Direct: you pay the broker yourself, for example a flat fee or a charge per trade.
Ofgem also notes that commission is based on estimated consumption. If you use more than estimated, you pay for your actual use, so a bad estimate can raise the total.
What must be disclosed
For microbusiness contracts since 1 October 2022, and for all non-domestic customers on contracts signed from 1 October 2024, third-party costs must appear in the contract's Principal Terms as a total in pounds and pence for the whole term (estimates allowed). If you pay the broker directly, that fee need not appear in the supplier's terms. Supplier sales staff are not required to disclose their commission.
Worked example
Imagine a quote includes an uplift of 0.5p per kWh for the broker (a made-up figure for illustration). For a business using 50,000 kWh a year on a three-year contract:
- Per year: 50,000 × £0.005 = £250
- Over the term: £250 × 3 = £750
That is the number that should be shown in the Principal Terms. A longer contract or higher usage multiplies it.
Questions to ask
- How are you paid: by me, by the supplier or both?
- What is the total in pounds over the whole term?
- Does the commission change if my usage changes?
- Which suppliers do you actually compare?
Ask for two quotes: one with commission included and one without. The gap is the broker's cut. If the broker won't separate them, treat that as a warning.
If you were not told
Ofgem cannot make brokers repay commission, and warns that people claiming otherwise are scammers. You may be able to pursue undisclosed commission through legal action after independent advice. See what to do if a broker mis-sold your contract.
Why comparing fee types matters
| Structure | What to check |
|---|---|
| Uplift per kWh | Rises with your usage; ask for the pence figure |
| Uplift on standing charge | Paid daily, even when closed |
| Upfront fee | Clear, but ask what happens if you leave early |
| Flat service fee | Easier to compare, but may still be paid twice if commission also applies |
Always compare the total cost of the contract, not the headline rate.
Be wary of anyone who says commission is "free" or paid entirely by the supplier. The supplier recovers the cost through your rates.
Next steps
Learn how to find out what your broker is paid and read our guide to brokers and commission.
Sources
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.