- Energy brokers are formally called Third Party Intermediaries (TPIs), and as of 2026 they are not directly authorised or regulated by Ofgem in the way energy suppliers are.
- Most brokers are paid through commission added to your unit rate (pence per kWh) by the supplier, not by an upfront fee, so the cost is recovered across your contract term.
- The TPI Code of Practice is a voluntary self-regulatory standard run through an independent panel; signatory status is a useful filter but is not a legal licence.
- Ofgem has confirmed it will introduce a regulatory framework for TPIs serving non-domestic customers, with new rules expected to take effect from 2027.
- Since December 2022, microbusinesses gained the right to take broker disputes to the Energy Ombudsman where the supplier or broker is in scope.
A business energy broker (TPI) negotiates supply contracts on your behalf and is usually paid commission baked into your unit rate. Check for TPI Code signatory status, ask how they are paid, and keep written records. Ofgem regulation arrives from 2027.
Last reviewed: June 2026
What a business energy broker actually does
A business energy broker is the company or individual who sits between your business and the energy suppliers. In the industry they are known as Third Party Intermediaries, or TPIs, a term that also covers comparison services, consultants, and bureaux that handle bill validation. When a broker contacts you about your gas or electricity, what they are offering is a service: gathering quotes from a panel of suppliers, presenting options, handling the paperwork, and arranging the switch on your behalf.
For a small or medium business, that service has genuine value. The non-domestic energy market does not work like the domestic one. There is no price cap on most business contracts, rates are quoted bespoke for your meter and consumption profile, and prices can change daily in line with wholesale movements. A broker who knows the market can shortcut a process that might otherwise take a finance manager several days of phone calls. The catch is that the broker is not neutral. They are paid by someone, and understanding who pays them is the single most important thing to grasp before you sign anything.
How brokers are paid: commission built into your unit rate
The most common payment model in UK business energy is supplier-paid commission. The broker does not usually send you an invoice. Instead, the supplier agrees to add an amount to your unit rate, expressed in pence per kilowatt hour, and pays that uplift back to the broker over the life of the contract. So if the raw rate a supplier could offer is, say, 24 pence per kWh, the broker might agree a contract at 25 pence and collect that one penny on every unit you consume.
This matters for three reasons. First, the commission is real money: across a multi-year contract for a business using hundreds of thousands of kilowatt hours, a fraction of a penny adds up to a substantial sum. Second, because it is folded into the unit rate, many business owners never see it itemised and assume the broker is "free". Third, the model creates a structural incentive: a broker paid more commission by one supplier may be tempted to favour that supplier. Reputable brokers manage this transparently; the risk is real where they do not.
Some brokers charge a flat fee or a management fee instead, particularly for larger or more complex accounts where they provide ongoing bill validation and portfolio management. A minority use a hybrid. The model itself is not the problem. Opacity is the problem. You are entitled to know the amount, and as of 2026 the direction of travel in regulation is firmly towards mandatory disclosure of commission.
The TPI Code of Practice
Because TPIs have historically sat outside direct regulation, the industry developed a voluntary self-regulatory standard known as the TPI Code of Practice. It is overseen by an independent governance panel and sets expectations around honest sales conduct, clear disclosure of the broker's role, fair treatment of microbusiness customers, accurate quoting, and a complaints process. Brokers who sign up commit to those standards and can be subject to review and, in principle, removal for breaches.
Signatory status is a meaningful signal. A broker willing to be held to a published code, with their name listed publicly, has chosen accountability over anonymity. But it is important to be precise about what the code is and is not. It is voluntary. It is not a licence issued by Ofgem, and it does not carry the statutory enforcement weight that supplier licences do. A broker can operate lawfully without signing it. So treat signatory status as one filter among several, not as a guarantee.
Ofgem TPI regulation arriving from 2027
The voluntary picture is changing. Following extensive consultation on the non-domestic market, Ofgem has confirmed it intends to bring TPIs into a formal regulatory framework, with rules expected to take effect from 2027. The aim is to close the long-standing gap whereby suppliers were tightly regulated but the brokers selling their contracts were not.
The core elements under development include mandatory transparency over commission so businesses can see what their broker is earning, redress requirements giving customers a clear route to complain and seek compensation, and minimum conduct standards backed by enforcement rather than voluntary opt-in. For business owners, the practical effect should be a market where the broker's pay is visible on the page and where poor conduct has consequences. Until those rules are live, the protections that exist are a mix of voluntary code, supplier licence conditions that touch brokers indirectly, and ombudsman access for the smallest businesses.
How to check if a broker is a TPI Code signatory
Checking is straightforward and worth doing before any contract conversation gets serious. The TPI Code of Practice maintains a public list of signatory companies, so you can confirm directly whether a broker appears on it rather than relying on their own marketing claims. Search for the broker's registered company name, not just their trading name, and cross-check that name against Companies House so you know who you are actually dealing with.
If a broker tells you they are a signatory, ask them to confirm in writing and verify it against the published list yourself. If they are not listed, that is not automatically disqualifying, but it should prompt sharper questions about how they are paid and what redress you would have if something went wrong. Be wary of any broker who is vague about their legal identity, reluctant to disclose commission, or who pressures you to sign quickly to "lock in" a rate before it disappears.
What the Energy Ombudsman covers
The Energy Ombudsman is a free, independent dispute-resolution service. Since December 2022, its remit was extended so that microbusinesses can bring complaints not only against suppliers but, in defined circumstances, against brokers where the relevant party is in scope of the scheme. A microbusiness for these purposes is broadly one with fewer than 10 employees and low annual consumption or turnover, as defined in the supplier licence conditions.
To use the ombudsman, you generally need to complain to the broker or supplier first and either receive a final response you are unhappy with or wait the prescribed period (commonly up to eight weeks) without resolution. The ombudsman can direct an apology, corrective action, or financial compensation where it finds in your favour, and its decision is binding on the business if you accept it. Larger businesses fall outside microbusiness protections and typically rely on contract law and, increasingly, on the redress mechanisms that Ofgem's 2027 framework is expected to introduce. Keep every email, quote, and recorded call reference, because a documented trail is what makes a complaint stick.
Questions to ask before using a broker
The conversation before you sign is where most problems are avoided. The table below sets out the questions that surface how a broker is paid, whether they are accountable, and what happens if things go wrong. A trustworthy broker will answer all of these without hesitation.
| Question to ask | Why it matters | Good answer looks like |
|---|---|---|
| How are you paid, and exactly how much commission is in my unit rate? | Reveals the true cost folded into pence per kWh. | A specific figure in writing, in pence per kWh. |
| Are you a TPI Code of Practice signatory? | Indicates willingness to be held to a published standard. | Yes, verifiable on the public signatory list. |
| How many suppliers are on your panel? | A whole-of-market view beats a two-supplier panel. | A named, reasonably broad list of suppliers. |
| What is your registered company name and number? | Lets you verify identity at Companies House. | A clear name and number, no evasion. |
| What is your complaints process and am I covered by the Energy Ombudsman? | Tells you your redress route if a dispute arises. | A written process plus confirmation of ombudsman scope. |
| Will you put the quote, term, and rates in writing before I commit? | Verbal-only deals are hard to challenge later. | A full written quote with no pressure to sign on the spot. |
Editorial firewall note: why kaeltripton.com stays out of the chain
It matters that you understand where this guide sits. kaeltripton.com does not act as an energy broker, does not refer readers to any broker or supplier, and does not receive commission, referral fees, or any payment for the contracts readers choose. Much of the business energy content you find online is published by brokers themselves or by sites paid to send leads to them, which means the "advice" doubles as a sales funnel.
That financial separation is the whole point. Because kaeltripton.com takes no commission from suppliers or brokers, there is no incentive to nudge you towards one supplier, one broker, or one contract length over another. The guidance here is editorial: explain the market honestly, point you to primary sources, and let you make your own decision or appoint your own broker on terms you can verify. When you read business energy advice anywhere, ask who pays the publisher. The answer should change how much weight you give it.
Frequently Asked Questions
Are business energy brokers regulated?
As of 2026, business energy brokers (TPIs) are not directly authorised or regulated by Ofgem in the way energy suppliers are. Many adhere to the voluntary TPI Code of Practice, and the smallest businesses can access the Energy Ombudsman, but a statutory framework specific to brokers is still being introduced and is expected from 2027.
What is the TPI Code of Practice?
It is a voluntary, industry self-regulatory standard for Third Party Intermediaries, overseen by an independent governance panel. It sets expectations on honest selling, clear disclosure of the broker's role, fair treatment of microbusinesses, and complaints handling. Signatories are listed publicly, but the code is not an Ofgem licence and does not carry statutory enforcement weight.
How do energy brokers make money?
Most are paid through commission added to your unit rate by the supplier, expressed in pence per kilowatt hour and recovered across the life of your contract rather than billed upfront. Some charge a flat or management fee instead, and a few use a hybrid. You are entitled to ask for the exact commission figure in writing before you sign.
What will Ofgem TPI regulation change?
Ofgem has confirmed a regulatory framework for TPIs serving non-domestic customers, with rules expected from 2027. The likely effects include mandatory disclosure of broker commission, a clear route to redress and compensation, and enforceable minimum conduct standards, replacing the current reliance on voluntary codes and limited ombudsman access.
How do I complain about a business energy broker?
Complain to the broker first and ask for a final response in writing. If you are a microbusiness and the matter is unresolved after the prescribed period (commonly up to eight weeks) or you are unhappy with the response, you may be able to escalate to the Energy Ombudsman where the broker is in scope. Keep all quotes, emails, and call references as evidence.
Do I have to use a broker at all?
No. You can approach suppliers directly and arrange a contract yourself, which avoids broker commission in your unit rate. A broker adds value by saving time and comparing a panel of suppliers, but the choice is yours, and for a confident finance team a direct approach is entirely viable.
