Business Energy Hidden Commission Guide (2025)

1. How business energy brokers are typically paid

Most business energy brokers in the UK are paid via one or both of the following:

• Uplifts on unit rates or standing charges: a small margin is added to the price you pay, and the difference goes to the broker.
• Direct fees: a visible consultancy or management fee, sometimes used for larger or more complex portfolios.

Neither approach is automatically a problem. The issue is whether you are told how it works and given enough information to judge whether the overall deal is fair.

2. What is an uplift and where does it appear?

An uplift is typically added to your:

• Unit rate (pence per kWh)
• Standing charge (pence per day)

For example, a supplier might offer a base rate of 28.00p/kWh. A broker might add 1.00p/kWh as their commission, meaning you pay 29.00p/kWh and the additional 1.00p covers their service. In general,around 1p per kWh is widely viewed as a reasonable broker fee for most small and medium businesses, though some contracts may fall above or below this. Varying factors are always taken into consideration on a case-by-case basis, especially for higher-usage sites or more complex supply agreements.

The key point is that this uplift is:

• Explained clearly when you sign up
• Consistent with what you have been told about how the broker is paid

3. When commission becomes “hidden”

Commission becomes “hidden” when:

• You are told the service is “free” without explanation of uplifts
• You are not informed that a broker is adding margin to your rates
• Questions about how the broker is paid are ignored or deflected

None of this is good practice. A transparent broker should be comfortable explaining how they are paid and what value they provide in return.

4. Questions to ask about commission and uplifts

Before agreeing a contract through a broker, ask:

• How are you paid on this contract?
• Have you added any uplift to my unit rates or standing charges?
• Roughly how much (in p/kWh) is included for your commission?
• Do you receive any other payments or incentives from this supplier?
• Can you confirm this in writing?

The exact numbers may vary by supplier and contract, but the explanation should be straightforward and consistent. If it is not, consider getting a second opinion.

5. Why transparency matters more than “cheapest price” claims

A broker that claims to be the “cheapest” but will not explain how they are paid should be treated with caution. In many cases:

• A slightly cheaper headline rate with poor terms can cost more overall
• Excessive or hidden uplifts can lock you into expensive contracts
• Lack of clarity makes it harder to compare alternatives fairly

Our comparison model favours brokers that are clear and consistent about how they are remunerated, not just those that shout loudest about savings.

6. Red flags to watch for

Common warning signs include:

• Pressure to sign immediately, with no time to review documents
• Refusal to provide written confirmation of how they are paid
• Unwillingness to show alternative supplier options
• Inconsistent or evasive answers about pricing

If you encounter any of these, pause the process. You can always seek another broker or review your options via an independent platform like WhichBusinessEnergy.com.

7. How to protect your organisation

To protect yourself:

• Ask for key terms and commission structure in writing
• Check that contract terms match what you were told verbally
• Read our Bill Protection / Avoid Getting Ripped Off guide
• Use our Switching Guide to understand timings and options

Being informed does not slow the process down. It simply means you sign a contract with your eyes open.

8. Using WhichBusinessEnergy.com for a more transparent process

WhichBusinessEnergy.com is designed to highlight brokers that demonstrate better transparency and support. You can:

1. Use our broker comparison to see overall scores, strengths and Key Summary notes.
2. Read Power Pages like this Hidden Commission Guide and our Switching Guide to understand how the market works.
3. Submit your details via Get Quoted so we can route your enquiry to brokers we believe are a good fit.

No supplier will contact you directly unless you choose to proceed with a contract.