A good business energy broker can save time, explain a complicated market and help you compare suitable contracts. The risk is not using a broker; it is agreeing before you know who the caller represents, what market they searched, how they will be paid and what the contract requires from your business.
The Energy Ombudsman's 2026 annual review shows why careful checks matter. Sales issues accounted for 93% of the broker disputes it accepted during 2025. Recurring themes included misrepresented market coverage, pressure selling, differences between quoted and contracted prices, poorly explained product terms, pass-through charges and broker termination fees following a premises move.
This guide does not suggest that every broker uses poor practices. It explains warning signs that any UK business can check before agreeing to a commercial gas or electricity contract.
Do and Don't: Protect Your Business Before You Agree
DON'T agree verbally. A commercial energy agreement made by telephone may be binding. Ask for the quote, principal terms and full contract by email, then take time to review them before agreeing.
DO verify the caller independently. If somebody says they are calling from a supplier, regulator, metering service or renewal department, tell them to email you and end the call. Contact the organisation using details from its official website or a genuine bill. An email address alone is not proof of identity.
DON'T disclose account details during an unsolicited call. Do not provide meter numbers, renewal dates, payment information, passwords or personal details until you have confirmed who is asking and why.
DON'T allow a broker to sign or renew a contract for you. Do not grant contractual signing authority through a letter of authority. If an LOA is needed to collect data or quotations, restrict its purpose, list the relevant meters and premises, and add an expiry date.
DO check every term in writing. Compare the quotation with the supplier's principal terms and full terms. Check unit rates, standing charges, broker fees, contract dates, pass-through costs, consumption clauses, renewal wording, moving-premises terms and termination fees.
DO sign the final contract yourself. You, or a named colleague who is properly authorised, should sign only after confirming the legal business name, supplier, premises, meter details, prices, contract length and obligations.
DON'T be rushed by a âtoday onlyâ offer. Ask for the quotation's validity period, the broker's market coverage and any claimed saving in writing. Pressure is a reason to pause.
DO keep your evidence. Save emails, quotes, principal terms, full terms, letters of authority and call recordings. After signing, confirm the supplier, prices and contract dates directly with the supplier.
GOLDEN RULE: no verified identity, no written terms, no authority and no agreement.
The Caller Is Unclear About Who They Represent
A broker should identify its legal business name, explain its role and say whether it represents particular suppliers or is acting as an intermediary. Treat a call cautiously if the caller creates the impression that they are your current supplier, the regulator, a meter service or an official renewal department when that is not clear.
Ofgem's guidance for intermediaries says customers should be able to understand who an intermediary is, what it does and whether it acts for a supplier or as an impartial intermediary. Before discussing contract authority, ask for the caller's legal name, website, complaints procedure and redress-scheme membership. Verify these independently.
âWhole Marketâ or âBest Priceâ Claims Are Not Evidenced
Not every broker searches every supplier. A recommendation based on a limited panel may still be suitable, but it is not the same as a whole-market comparison. Ofgem explains that some intermediaries represent only one supplier or a small group and are not necessarily required to find the best available deal.
Ask which suppliers were considered, which provided quotations, which declined and whether commercial relationships affected the shortlist. Request the supplier list in writing. A precise answer is more useful than a broad âbest dealâ claim.
Urgency Relies on an Unsupported Market Prediction
Energy prices move, so a broker may reasonably discuss market risk. The warning sign is certainty without evidence: prices will definitely rise today, an offer will disappear immediately, or the business must commit during the call.
Ask for the quotation's expiry time and the reasoning in writing. A forecast is not a fact. A decision affecting years of business expenditure deserves time to understand the terms, even when a genuine quote has a short validity period.
You Are Asked to Agree Before Receiving the Principal Terms
Business owners sometimes assume nothing is binding until a document is signed. That can be wrong: Ofgem warns that a commercial energy contract can be agreed over the telephone and that there is no general cooling-off period, even when the agreement is verbal.
Before saying yes, obtain the principal terms and the full terms. Check the price, contract length, start date, renewal provisions, termination conditions and early-exit charges. If the seller will not allow a reasonable opportunity to review them, stop the call.
The Spoken Price and Contract Price Do Not Match
Compare the call summary, written quotation and supplier contract line by line. The Energy Ombudsman's 2026 broker review records disputes where the quoted price differed from the contracted price or where total cost and unit rates were described inconsistently.
Record every unit rate, standing charge, meter-specific charge, tax and levy for each supply. If somebody describes a monthly saving, ask for the annual consumption figure, current-cost baseline and assumptions used to calculate it.
Broker Commission or Service Fees Are Not Clear
Broker remuneration is often added to the energy rate and collected through the supplier bill. That is a common payment arrangement, but the customer should understand it.
For non-domestic contracts signed on or after 1 October 2024, Ofgem's supplier rules require principal terms to display broker fees, and suppliers must make the information available on request. Ask for the fee basis, such as pence per kWh or a direct charge, and the estimated total over the contract term. A direct fee paid separately to the broker should also be documented clearly.
A âFixedâ Contract Contains Unexplained Variable Items
Fixed does not always mean every part of the bill is fixed. Some products allow network, policy or other third-party costs to pass through, and those costs can change during the term.
Ask which elements are fixed, which can vary, how changes are calculated and where this is written. The Energy Ombudsman has reported disputes where businesses thought a fixed contract covered charges that were actually passed through separately.
Consumption Estimates or Volume Rules Are Glossed Over
An inaccurate annual-consumption figure can distort projected bills and broker remuneration. Some contracts include volume-tolerance or volume-variance provisions that may create charges when actual use differs materially from the agreed range.
Use a recent 12-month consumption total where possible. Ask what happens if the business expands, contracts, changes opening hours, installs generation, becomes insolvent or closes a site. If you expect to move, tell the seller in writing and ask how that affects both the supply contract and any separate broker agreement.
The Letter of Authority Is Broader Than the Task
A letter of authority can allow a broker to obtain supply information and speak to suppliers for you. Read its scope carefully. It should say whether the broker may only collect data and negotiate quotations, or whether it purports to submit a contract, renew an agreement or appoint others.
Limit an LOA by purpose, meter, premises, supplier and expiry date. Remove any power you do not need. Retain a signed copy and written confirmation of how to revoke it. Never provide authority wider or longer than the service you requested.
Renewal or Extension Terms Are Treated as an Afterthought
A low opening rate can distract from renewal mechanics. Check when the fixed term ends, whether any service agreement with the broker runs separately, what notice is required and whether an extension can be arranged without a fresh, informed decision.
Put the contract end date and every notice date in more than one calendar. Ask the supplier to confirm them directly once the contract starts. Do not rely solely on a future reminder from the broker.
Moving Premises Could Trigger a Broker Termination Fee
This deserves special attention. The Energy Ombudsman's 2026 review describes cases where businesses moving premises incurred broker fees equivalent to lost commission. It questioned how clearly these terms had been explained and whether it was fair to expect reimbursement when a business left a location, sometimes involuntarily and at short notice.
An expensive clause is not automatically unlawful or unenforceable. The answer depends on the wording, how the term was incorporated and brought to the customer's attention, what was said during the sale, the customer's legal status and the surrounding evidence. Before agreeing, ask in writing what happens if you move, sell, close, lose the lease, suffer insolvency or the supply never starts.
If you are moving: tell the supplier promptly, keep dated evidence of the change of occupier, photograph meter readings and review both the supplier contract and any separate broker-service agreement. If a fee demand or legal letter arrives, do not ignore it; obtain advice on the particular documents and deadlines.
The Complaints and Redress Route Is Vague
Micro and small-business brokers covered by the rules should belong to a Qualifying Dispute Settlement Scheme. Ask which scheme applies and verify the broker on the scheme's register. Be cautious if the broker will not provide a complaints procedure or explain how an unresolved complaint can be escalated.
Citizens Advice's business energy complaints guidance recommends contacting the broker promptly and keeping a written record. Depending on the scheme, an eligible complaint may be escalated after deadlock or after the applicable waiting period. Check the current rules of the broker's named scheme rather than assuming every route has the same deadline.
A 10-Minute Checklist Before You Agree
- Verify identity. Confirm the broker's legal name, role, contact details and redress-scheme membership independently.
- Check market coverage. Ask whether the comparison is whole-market or panel-only and request the supplier list.
- Get the documents first. Obtain the quotation, principal terms and full terms before giving verbal or written agreement.
- Confirm the complete price. Check unit rates, standing charges, pass-through items, taxes and estimated annual cost.
- Ask about remuneration. Request the broker fee or commission basis and its estimated total over the term.
- Check every date. Confirm the start, end, renewal and notice dates and any cooling-off provision actually offered.
- Read the difficult clauses. Review volume variance, early exit, change of tenancy and lost-commission terms.
- Restrict authority. Limit any LOA by purpose, meter, duration and power to contract.
- Keep evidence. Request the sales-call recording and retain every version of the offer and terms.
- Know the complaint route. Confirm the broker's process and applicable ADR or QDSS scheme.
What to Do If You Think a Contract Was Mis-Sold
- Gather call recordings, emails, quotations, principal terms, full terms, bills, letters of authority and notes of dates and names.
- Write to the broker. State the exact representation, omitted term or disputed charge and the outcome you want.
- Write to the supplier separately if its contract, bill or switching action is involved.
- Use the appropriate dispute-resolution scheme if the complaint reaches deadlock or the relevant waiting period expires.
- Obtain independent legal advice promptly if money is demanded or proceedings are threatened. Do not assume a charge is automatically valid or invalid without reviewing the contract and evidence.
A Balanced View
Energy brokers can offer real value through supplier access, market knowledge, tender management and ongoing support. Commission is not improper merely because a broker is paid through the energy bill, and a demanding contractual term is not automatically unlawful simply because it is expensive.
The practical test is transparency and informed choice. Did the business know who the broker was, what market was searched, what service would be delivered, how the broker would be paid, what the energy would cost and what could happen if circumstances changed?
This article provides general information for businesses in Great Britain and is not legal advice. Contract rights depend on the wording, facts, dates and parties involved. Seek independent legal advice about an active dispute, threatened claim or court deadline.
