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01Guide

Business energy brokers: how the market works, and how to grow one.

This guide is written for two readers. The first is a business owner or finance manager trying to work out what business energy brokers do, how energy brokers for business are paid, and whether a commercial electricity broker is worth using at all. The second is the person running the broker — the one asking how to build an energy broker business that isn’t dependent on bought data. Both questions have the same underlying answer: the value sits in supply data, contract timing and panel breadth, not in a headline rate.

02

The role

What a business electricity broker actually does.

A business electricity broker sits between a non-domestic customer and the supplier market. The sequence is consistent across the sector: a Letter of Authority is signed, the broker pulls supply detail from the MPAN or MPRN and the current contract, twelve months of consumption or an EAC/AQ figure is established, and pricing is requested across whichever suppliers hold that customer’s credit profile and meter type.

The part customers rarely see is normalisation. One supplier returns a fully fixed price, another passes network and policy charges through at cost, a third quotes a fixed commodity with pass-through third-party costs. Presenting those side by side as three p/kWh numbers is meaningless. The work a good commercial electricity broker does is turning them into a like-for-like comparison the customer can actually decide on — the mechanics of which are set out in our business energy comparison guide.

03

Commercials

How energy brokers for business make money.

The dominant model is an uplift: a small addition to the unit rate, collected by the supplier and paid to the broker across the contract term. Fee-based and hybrid models exist, particularly on large half-hourly and multi-site portfolios where a flat management fee is cleaner than an uplift on volume. None of these are inherently better or worse; what matters is whether the arrangement is disclosed and whether the customer can see the uplift expressed in p/kWh.

For the broker, the commercial consequence is that revenue is earned over years and renewal retention decides profitability. That is why the marketing that works in this sector is built around contract-end dates rather than generic acquisition campaigns.

04

Definitions

Broker, TPI, consultant: the terms aren’t interchangeable.

Third Party Intermediary is the regulatory umbrella. Business energy brokers place contracts. Energy consultants advise on procurement strategy and may never place one. Bureau providers handle validation and reporting on bills already in place. Many firms do two or three of these, which is exactly why a site that describes itself only as “business energy solutions” loses the searcher looking for one specific capability.

05

Growth

How to grow an energy broker business.

Bought data is the default and the trap. A lead sold to five brokers converts like a lead sold to five brokers. The alternative is owned flow, and it has four parts: a site structured around desk types — SME, half-hourly, deemed rate, multi-site — so a visitor can self-select in seconds; search visibility on renewal, out-of-contract and deemed-rate intent rather than domestic switcher volume; paid media qualified on supply-number capture instead of form fills; and CRM discipline that surfaces a renewal ninety days before the out-of-contract window rather than after it.

Those four are the services we build: broker website design, business energy SEO, paid media and lead generation.

06

FAQs

Questions we get asked about the broker model.

What do business energy brokers actually do?

Hold an LOA, pull supply data from the MPAN or MPRN, price across a supplier panel, normalise the quotes onto a like-for-like basis and manage the switch or renewal through to live supply.

How are energy brokers for business paid?

Usually an uplift inside the unit rate, settled by the supplier over the contract term. Fee-based and hybrid models are common on large half-hourly portfolios. The arrangement should be disclosed either way.

What's the difference between a commercial electricity broker and a TPI?

TPI is the umbrella term. A commercial electricity broker is one type of TPI, alongside consultants, bureau providers and procurement advisers.

How do you grow an energy broker business?

Owned lead flow over bought data: desk-structured site, renewal-intent search visibility, paid media qualified on MPAN capture, and renewal dates worked before the out-of-contract window.

Is a business electricity broker cheaper than going direct to a supplier?

Not automatically. A business electricity broker adds value through panel breadth, timing and quote normalisation rather than a discount a supplier wouldn’t otherwise offer. Direct can win on a single low-consumption supply; a broker usually wins across multiple meters, half-hourly data or a credit profile that needs placing carefully.

How do I choose between business energy brokers?

Ask five things in writing: how many suppliers sit on the panel, how commission is disclosed in p/kWh, whether fixed and pass-through quotes are shown side by side, who handles objections and erroneous transfers, and how renewal dates are tracked.

Are energy brokers for business regulated in the UK?

Energy brokers for business aren’t licensed by Ofgem the way suppliers are, but they sit inside the Third Party Intermediary framework and the microbusiness rules — which require commission disclosure and access to a qualifying alternative dispute resolution scheme.

What is a Letter of Authority, and why does a commercial electricity broker need one?

It’s written permission for a commercial electricity broker to request supply data and pricing on the customer’s behalf. Without it, suppliers won’t release consumption history or issue quotes, so no like-for-like comparison can be built.

How much does it cost to start an energy broker business?

Regulated barriers are low; commercial ones aren’t. Beyond company setup, insurance and a CRM, the real cost is lead flow plus cash-flow cover while commission pays out over the contract term rather than at signature.

What marketing works best for business energy brokers?

Renewal-intent and out-of-contract search terms, desk-specific landing pages, and paid media qualified on supply-number capture. Generic “compare business energy” campaigns pull domestic switchers who rarely have a quotable MPAN.

Can a broker switch a business supply without the customer signing?

No. An LOA permits data access and pricing, not contracting. A contract needs verifiable acceptance — a signature or recorded verbal agreement — and an erroneous transfer can be objected to by the losing supplier.

Next step

Running a broker desk and want more of your own enquiries?

Send us your site and we’ll tell you which commercial terms you’re missing and where the enquiry journey leaks. Start with our business energy solutions or go straight to a free audit.