What is an energy broker?

Energy broker meaning

Ofgem groups energy brokers, energy consultants and price comparison services under one name: third-party intermediaries, or TPIs. In Ofgem's words, energy brokers "can help you find a suitable contract for your business, and then negotiate with your chosen supplier."

In practice a broker:

• Collects your supply details, consumption and contract end dates
• Asks the suppliers it works with to quote for your supplies
• Presents the quotes so you can compare them
• Arranges the contract with the supplier you choose
• Often helps after the contract starts, for example with renewals, billing queries or moving premises

A broker is not your energy supplier. The supplier holds an Ofgem licence, supplies the energy and sends the bills. The broker arranges the deal. That distinction matters, because the government's 2025 response on regulating brokers highlighted business-market brokers misrepresenting themselves as energy suppliers.

On this site, Forever Communications works as an agent of Fidelity Energy, an independent business energy broker. You can read how that works on our business energy broker page.

Brokers, consultants and comparison sites compared

The labels overlap, and many firms do more than one of these things. As a rough guide:

Forever Communications introduces customers to Fidelity Energy, which arranges and manages the contract, and we say so on every page where it matters. Fidelity Energy itself describes its service as a consultancy as well as a broker: it also offers bill validation, flexible procurement, green energy procurement and an energy management platform.

How do energy brokers make money?

Ofgem says brokers "charge you for their services. Some charge an upfront fee, but most are paid a commission by the energy supplier you choose."

Commission is usually an uplift: a small amount added to each kWh you use, to the daily standing charge, or both. It is included in the prices you are quoted, so you do not see a separate bill from the broker, but you do pay it through your energy bills for the length of the contract. A longer contract or higher consumption means more commission in total.

For business energy contracts signed on or after 1 October 2024, Ofgem's rules require suppliers to show broker costs in the principal terms, and to give you the information if you ask (microbusinesses have had this since 1 October 2022). So you can see what you are paying for the broker's service before you agree.

Fidelity Energy is normally paid this way, and you can opt at the start to pay it by invoice instead. Forever Communications is paid by Fidelity Energy out of that commission. Our energy broker fees page explains exactly how it is worked out.

Panel or whole market?

Not every broker compares every supplier. Ofgem's advice for price comparison services is a sensible test for any broker too: check which suppliers are included, and whether the comparison covers the whole market or only a selection of suppliers. The government's 2025 response on regulating brokers lists a lack of transparency about "market coverage", alongside commission structures, among the problems it wants to fix.

Fidelity Energy says it works with a network of 24+ suppliers. That is a panel, and we describe it as one. A panel is not a bad thing in itself. What matters is that you know what was compared.

If you have a supplier in mind that you want included, say so when you ask for quotes. The government's response on regulating brokers lists "only seeking quotes from favoured suppliers" among the concerns it wants to address, so asking the question is reasonable with any broker.

Are energy brokers legit? How to tell

Plenty of brokers do a good job, but the government's own consultation response describes "a subset of unethical and exploitative actors" in the market, with concerns about hidden commission and poor sales practice. Ofgem's advice is blunt: "Because there is no cooling-off period after you agree to your contract, it's important you make sure you use a trustworthy broker."

These checks separate the two:

1. Check the redress scheme. A broker paid by suppliers must belong to an approved redress scheme. Ofgem points to the Energy Ombudsman broker register and the UIA accredited member list. See energy broker ombudsman.
2. Ask how it is paid, and how much. A good broker answers plainly and the figure matches the broker costs in your principal terms.
3. Ask which suppliers it compares. A panel is fine; being vague about it is not.
4. Check who you are dealing with. A broker should say it is a broker. Be wary of anyone who implies they are your current supplier or calls about an urgent price rise.
5. Read the terms before agreeing. Contract type, length, exit fees and what happens at the end. There is no cooling-off period for business energy once you agree.
6. Be wary of pressure. Deadlines are real when a quote is about to expire, but a decision you are pushed into on the first call deserves a second look.

Microbusinesses get extra protection under Ofgem's rules: see microbusiness energy rules.

Do you need an energy broker?

You can arrange a business energy contract yourself. Ofgem says so, and notes that the best option may even be your current supplier. A broker earns its commission when it saves you time, gets you quotes you would not have collected yourself, explains the terms clearly and helps when something goes wrong.

A broker tends to help most when:

• You have several sites, meters or contract end dates to manage
• You are on out-of-contract rates or deemed rates and want to move quickly
• You use enough energy that flexible purchasing is worth considering
• You want help with green electricity, half-hourly supplies or reporting

If you would like to see what Fidelity Energy's panel offers for your supplies, contact us with a recent bill. Prices are confirmed by the supplier at quote.