Energy broker fees: here’s what you need to know about how much energy brokers make?

Energy broker fees: here’s what you need to know about how much energy brokers make?

Understanding energy broker fees is key to determining whether you are paying a fair amount for your business energy, as increasing numbers of brokers are being found guilty of charging too much

Energy is one of the main sources of spending for businesses, no matter the size or speciality of the organisation. Energy broker fees are a standard part of this, but it’s important to be able to differentiate fair energy broker fees from unfair ones.

Unfortunately for businesses, the commercial energy market is not very well regulated, especially when compared to the stringent rules in place for domestic energy suppliers. This has led to some brokers taking advantage of their customers, and charging hidden fees as part of their business energy deals.

How do energy broker fees work?

The majority of contracts arranged by a broker include an energy broker fee, or commission, in the price you pay per kWh for gas and electricity. How much the broker gets paid depends on the agreement made between energy brokers and the supplier. Energy suppliers can allow brokers to set very high levels of commission, and this increases the price of energy in your contract. Due to the fact that energy contracts are unregulated, these fees don’t necessarily have to be made clear to the customer.

While some broker fees will be explained in the terms and conditions, the energy broker fees you pay indirectly through your bills are rarely made clear. Even if you ask them directly, some brokers may delay or refuse to acknowledge your request. This should act as a warning sign that you are paying too much for your energy.

How much do energy brokers make?

Energy brokers and energy consultants can make a substantial profit, even without charging hidden business energy commission. In the US, the average energy consultant salary is $70,000 per year. Many energy brokers operate in a perfectly fair and transparent way, only charging fair fees for their business consumers. However, unethical energy brokers will use hidden business energy commission as a way to boost their earnings.

When brokers care more about looking after themselves than providing the best deals for their business energy customers, hidden business energy commission becomes the norm. It’s important to be aware of this potential risk so that you can investigate whether you’re paying a fair amount for your business energy.

How much commission do energy brokers make?

The amount of energy that brokers make depends on the rates they charge. Broker commissions usually start at 0.05p per kWh, and are usually capped at 1p or 2p per kWh by the majority of energy suppliers. You may need to do some investigating and interrogating with your broker in order to find out exactly how much commission you are paying as part of your business energy deal.

Because of this, many businesses are seeking out support from legal specialists like Winns Solicitors, who are helping business energy customers fight against unfair commission rates and win back the money that they should never have paid in the first place.

The issue of hidden business energy commission has become so widespread that even Ofgem, the energy regulator, has committed to investigating the matter further and implementing changes to make it harder for energy brokers to charge high commission fees without first making it clear to their business energy customers.

If you think that you’ve been victim to a mis sold business energy claim, the time to act is now. Get in touch with Winn Solicitors by visiting and find out more about how to pursue a no win no fee claim.

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