Energy brokers, comparison sites and introducers: how each one gets paid

If someone offers to find you a business energy deal for free, a fair first question is: who is paying them? Ofgem says you can arrange a contract yourself, or use a broker, consultant or price comparison service (together called third-party intermediaries). Each works differently, and the differences matter.

This guide compares comparison websites, brokers and introducers: how each is paid, what you should be told, what protections the regulator points to, and what to ask. We are an introducer ourselves, so we say so up front and explain exactly how we are paid. We do not give advice or recommendations, and nothing here is a recommendation of any route.

The three routes at a glance

Comparison websites

Ofgem says price comparison websites help you compare business gas and electricity contracts from different suppliers. Its advice is to check which suppliers are included in the comparison, whether the site compares the whole market or only a selection, and whether it receives commission from energy suppliers or other sources.

Citizens Advice adds three practical points. Not all sites show the same suppliers or tariffs, so use more than one. Business energy prices depend on your situation, so many sites will take some details and then contact you to discuss prices, usually by phone. And once you have a deal you like, contact the supplier directly to check they offer what you were quoted. Ofgem’s list of genuine comparison websites is aimed at household customers, though Citizens Advice says most of those sites also compare business tariffs. If you use a different site, check it is genuine.

Energy brokers

Ofgem says brokers can help you find a suitable contract and negotiate with your chosen supplier, which can save you time and resources. It also says they can help you understand your bills, energy grants you could apply for and how to make your business more energy efficient.

How brokers are paid

Ofgem says brokers charge for their services. Some charge an upfront fee, but most are paid a commission by the energy supplier you choose. Some may also charge a service fee that is included in the bill from your supplier. Ofgem says your supplier must give you details of any service fees included in your bill if you ask.

Citizens Advice describes the same two patterns: you might pay a one-off fee when you sign up, or pay as part of the cost of your energy while you are in the contract. It says the broker must give you this information in writing, and that you should consider their fees when deciding whether to sign.

What you should be told about commission

This is where the rules differ by business size, according to Citizens Advice:

• Microbusiness. If your broker is paid by your supplier, the broker has to tell you how much the supplier pays them before you agree to a contract. Your supplier must tell you the total amount your broker is getting for setting up your contract, in a way that is easy to understand, plus how much they get per unit of energy and from your standing charge.
• Not a microbusiness. The supplier does not have to tell you the total, but must tell you how much the broker is getting from each unit of energy and from your standing charge.
• Terms. For a microbusiness, the supplier or broker should send the terms and conditions within 10 days of agreeing a contract, including details of any fee the broker will get.

Citizens Advice suggests you can check your supplier’s figures against what your broker told you.

Registration and redress

Ofgem says that if your broker is paid by an energy supplier, they must be a member of an approved redress scheme, and it lists two places to check: the Energy Ombudsman broker register and the Utilities Intermediaries Association (UIA) accredited member list. Citizens Advice says check before you agree to use a broker, because if they are not registered you will not be able to complain if something goes wrong.

The Energy Ombudsman says that from 19 December 2024 small businesses (within its published size criteria) can receive free dispute resolution support for disputes with an energy broker, as long as the broker is signed up to its scheme. You will need to follow the broker’s own complaints process first, and the Ombudsman says it may be able to help after 8 weeks or once a deadlock letter has been issued. The UIA says it has operated a Code of Practice and Redress Scheme for business consumers since 2006.

The letter of authority

Citizens Advice says that when you work with a broker you normally sign a letter of authority, a document that lets the broker act for you, for example to look for a cheaper tariff and switch it for you using your consumption information. Read it carefully so you know what the broker can do. Ofgem also says to pay close attention to what activities you give the broker permission to carry out on your behalf.

Introducers

An introducer connects you to a business that does the comparing. That is how we work. You send us your bill; we introduce you to our energy partner, who gathers quotes and options from 50+ suppliers. When an introduction leads to a qualifying contract, we receive a commission from our energy partner. It is free to you, and we do not give advice or recommendations. You compare the options and make the call.

Be aware of what Ofgem says about commission in general: it lists “any broker fees or commissions included in the price” among the things to know before you agree a contract. So whichever route you use, the right question to ask is not “is it free?” but “how is everyone in this chain paid, and is any of it in the price?”. You can put that question to us, to a broker and to a supplier.

Ten questions to ask anyone who offers to help

1. How are you paid, and is any fee or commission included in the price I will pay?
2. Is there an upfront fee, and what does it cover?
3. Which suppliers do you work with, so I know how much of the market I am seeing?
4. Do you compare the whole market or a selection?
5. Will I see the full contract and its terms in writing before I agree?
6. What will you be allowed to do on my behalf, and what is in the letter of authority?
7. If you are a broker paid by a supplier, which redress scheme are you signed up to, and can I check the register?
8. What happens at the end of the contract, and who will tell me when the switching window opens?
9. What happens if something goes wrong, and who do I complain to first?
10. Can I have all of this in writing?

Things to be careful about

• No cooling-off period. Ofgem says there is none once you agree a contract, even by phone.
• Phone agreements are binding. Citizens Advice says you can agree to use a broker over the phone and that this is binding. Ask for information in writing before you agree.
• Mis-selling. Ofgem says to be careful of anyone who might be mis-selling energy contracts, and that you could end up paying higher bills or be locked into a long-term contract you do not want. If you think a broker is mis-selling, Ofgem says to report it to Trading Standards.
• Unexpected calls. Ofgem’s advice is to verify unexpected calls, and if in doubt stop and check the caller’s details.
• Going direct can be an option. Citizens Advice says you might get a better contract contacting suppliers directly, and that once you have broker quotes you can go back to your current supplier to see if they can offer a better deal.

For the complete picture of what to check on any contract, see our guides to how switching works and to fixed and variable contracts.

Frequently asked questions

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