Last updated: Sunday 4 October 2026 (Europe/London).
Next update: when Ofgem updates intermediary / TPI guidance or suppliers change how broker commission appears on principal terms.
By: Switch Editorial Team, Switch Squid Ltd
As of 4 October 2026, UK SMEs comparing business energy quotes should treat broker commission as a line they can ask for in writing — suppliers have been required to disclose third-party intermediary (TPI) service fees more clearly since 1 October 2024, and Ofgem’s good-practice guidance still expects intermediaries to explain how they are paid before you sign. This guide helps you read commission uplifts on commercial quotes. Primary buttons go to SwitchSquid’s business-energy journey only — not a residential comparison site.
Sources: Ofgem — setting up energy contracts: good practice, Ofgem non-domestic market review materials on TPI fee transparency, and HMRC / GOV.UK pages for related commercial energy costs where relevant.
Get a business energy quote (transparent path)
- Non-domestic meters only — not residential MoneySuperMarket links
- Have MPAN/MPRN, usage and contract end date ready
- Main limitation: quotes need accurate site details and consumption
Broker fee facts SMEs should insist on (October 2026)
| Question | What good disclosure looks like | Red flag |
|---|---|---|
| How is the broker paid? | Clear uplift in p/kWh and/or £ total over the term | “Don’t worry, the supplier pays us” with no numbers |
| Where does the fee sit? | Shown in principal terms / on request from the supplier | Fee invisible on every document you are shown |
| Microbusiness vs larger SME | Microbusinesses should also see monetary amounts; others see cost-per-unit formats | One vague percentage with no worked example |
| Letter of authority (LOA) | Limited scope, time-bound, easy to revoke | Open-ended LOA that lets anyone renew for you forever |
| Dispute route | Qualifying redress scheme membership where required | No complaints path if the quote goes wrong |
Commission is usually collected through your energy unit rate, not a separate invoice you notice monthly. That is why a “cheap” headline rate can hide a large uplift. Ask for the pence-per-kWh broker element and a pounds estimate across the full contract.
Why October 2026 is a good moment to re-check fees
Many SME contracts renew on winter-facing dates. Household headlines about the £1,723 residential price cap do not set your business rates — but they do distract owners into signing the first broker email that lands. Use renewal season to demand written commission disclosure, compare at least one direct or alternative quote path, and refuse LOAs you do not understand.
How to interrogate a broker quote in 15 minutes
1. Ask for the uplift in p/kWh for electricity and gas separately, plus the estimated £ total over the contract.
2. Ask whether the fee is embedded in the unit rate or billed another way.
3. Request the supplier’s principal terms so you can see the TPI disclosure the licence rules expect.
4. Cap the LOA to a named site, fuel and date range.
5. Compare a second route — another broker, a supplier direct desk, or SwitchSquid’s business-energy form — using the same kWh and contract length.
Business energy quote after the commission check
- Get broker uplifts in writing before you sign
- Compare like-for-like kWh and term length
- Use SwitchSquid’s business-energy form — not residential Compare
When a broker still earns their fee
Good brokers save time across multi-site portfolios, catch out-of-contract drift, and surface suppliers you would not reach alone. Pay for that value knowingly. If the only “service” is forwarding a single PDF with an opaque rate, the uplift is harder to justify.
Fit summary
Good for: SMEs and microbusinesses renewing or leaving deemed / out-of-contract rates who need commission transparency before winter.
Consider alternatives: if you already have a trusted tender process with disclosed fees — keep it, but still re-read principal terms annually.
Not for: domestic homes — use residential energy guides and MoneySuperMarket links on those pages instead.
Important conditions
- This is general information, not legal or procurement advice.
- Ofgem rules put disclosure duties on suppliers; brokers should still explain fees clearly under good-practice guidance.
- Climate Change Levy, VAT and standing charges are separate from broker uplifts — read each line.
- Half-hourly sites and complex capacity charges need specialist quoting beyond a simple SME form.
- Never invent residential price-cap maths for a business meter.
- Primary CTAs on this page go only to SwitchSquid’s business-energy journey.
Quote checklist once fees are understood
1) Export 12 months of invoices and note current rates and any broker labels.
2) Diary the contract end date and notice window.
3) Request written commission figures from any intermediary.
4) Submit the same consumption to SwitchSquid’s business-energy form and at least one other route.
5) Sign only when principal terms, uplift and exit fees are clear.
Final decision card
Renewal in the next 90 days → demand written TPI/broker disclosure, compare a second path, then choose.
Already mid-contract with a painful exit → fix billing errors first; diary the notice window for a clean retender.
Domestic home meter → leave this page and use residential guides instead.
Check business energy quote options
- Submit accurate MPAN/MPRN and annual kWh
- Ask every intermediary for p/kWh and £ commission totals
- Decline open-ended letters of authority
Worked example: why a small uplift still matters
Suppose your site uses 50,000 kWh of electricity a year. An opaque 0.5p/kWh broker uplift is £250 per year before you count gas. Over a three-year contract that is £750 — enough to justify a second quote route even if the broker still wins on total value. Larger sites see the same pence turn into five-figure sums. Ask for the uplift on both fuels, multiply by your own kWh, and put the pounds next to any “we’ll handle everything” promise. If the broker cannot show the arithmetic, pause.
Also separate one-off tender fees from embedded uplifts. A transparent fixed consultancy fee can be healthier than a quiet unit-rate embed you will still be paying in year three. Whichever model you accept, keep the email trail with the principal terms PDF.
Microbusiness rights and redress in plain English
If you qualify as a microbusiness under Ofgem definitions, you should see monetary commission figures as well as unit formats, and you have clearer routes into dispute schemes when intermediaries mishandle a sale. Small businesses gained broader Energy Ombudsman access pathways after 2024 reforms for many broker-related complaints — check current eligibility on Ofgem / Ombudsman pages when you need them. None of that replaces reading the contract. It does mean you should not accept “no one discloses fees in this industry” as an answer in 2026.
Keep residential and business metres mentally separate. Staff who work from a home office on a domestic meter belong on SwitchSquid’s home energy guides with MoneySuperMarket links. Warehouse, shop and office supplies belong on this business path with the SwitchSquid form only.
FAQ
Do UK business energy brokers have to disclose their commission in 2026?
Suppliers must disclose TPI service fees to non-domestic customers under rules that took effect from 1 October 2024, including cost-per-unit formats and additional monetary detail for microbusinesses. Ofgem also publishes good-practice expectations for intermediaries. Always ask for the numbers in writing.
How much commission do business energy brokers typically charge?
Industry guides often describe uplifts of a few pence per kWh depending on fuel and deal — but there is no single official cap in the materials we cite. Treat any figure as a starting question for your quote, not a universal tariff.
Is broker commission included in the unit rate?
Often yes. The supplier collects it through your bills and pays the intermediary. That is why you should request an explicit p/kWh uplift rather than assuming the headline rate is “clean”.
What should a letter of authority include?
Named business, sites, fuels, a clear end date, and permission limited to obtaining quotes — not an open-ended right to switch you without fresh consent. Revoke LOAs you no longer need.
Does the £1,723 domestic price cap apply to my SME?
No. The £1,723 Oct–Dec 2026 figure is a residential typical-use sketch. Business contracts are negotiated or deemed commercial products without that household cap.
Can I compare business energy without a broker?
Yes. Use supplier desks and trusted non-domestic journeys. SwitchSquid’s business-energy form is the primary path on this page.
What if I am already out of contract?
Deemed or out-of-contract rates can be expensive. Gather usage, request disclosed quotes quickly, and avoid signing the first opaque offer under time pressure.
Where do I go for a SwitchSquid business energy quote?
Use switchsquid.com/business-energy/ — not residential MoneySuperMarket links.
