Choosing the right energy broker can save your business thousands of pounds. Choosing the wrong one could lock you into an expensive contract with excessive uplifts, hidden charges and unexplained terms and conditions, quite often these contracts can be for years. If you’re reviewing quotes from different energy brokers, this guide will help you compare them properly beyond just the headline unit rate so you can make a confident, cost-effective decision.

Why Comparing Energy Broker Quotes Isn’t Straightforward?

Unlike domestic tariffs, commercial energy pricing can be complex, two different brokers or energy consultants may present varying different contract offers and structures, these could include

• Different suppliers

• Different contract structures

• Different contract lengths

• Different pass-through cost assumptions

• Different commission models

On paper, one quote might look considerably cheaper however the total cost over the contract term could be significantly higher, this could be due to pass through costs, hidden supplier terms including exit charges, volume tolerance charges and more.

Step One – Compare the full annual cost, not just the unit rate

Most business owners focus only on the actual unit rates as pence per kwh or the daily standing charge, rarely both and what is also included with each contract option that they have been presented.

But to ensure an accurate comparison of suppliers you also need to understand your annual usages, what is included in the contract and what isn’t, this could include non-commodity costs, capacity charges. You also need to under the contract length, estimated annual costs, and ask each broker or consultant to provide a total cost based on your actual historic usage. This will give you a true like for like comparison.

Step Two – Check the contract type

Make sure you understand whether the quote is a fixed rate contract or a flexible or pass through contract.

With a fixed rate contract, your unit rate remains fixed for the contract term, with a flexible or pass through contract, wholesale energy costs may be fixed but other charges may not be these could be network charges. If one broker is quoting a fully fixed price contract and another is quoting a pass-through contract the comparison is not equal.

Make sure to clarify with the broker or consultant which elements of the contract are fixed, what elements are variable and what risk does your business carry?

Step Three – Understand the Broker’s Commission

Energy brokers and consultants in the UK are typically paid commission by suppliers. This is normally included in the unit rate as a pence per kwh uplift. You are entitled to know how your broker is being paid, and how much this will equate to throughout the term of your contract.

Ask your broker or consultant if the commission is included in the rate, how much commission per kwh, and the annual or total contract amount. Additionally you should also understand what your energy broker or consultant will offer for this fee and whether those charges could become payable by you if you are in breach of a supply contract.

Step Four – Check the Contract Length

Longer contracts 3-5 years may offer lower unit rates but they can also increase your exposure if costs fall or if not a fully fixed contract you may be subject to a mid contract price rise.

Compare, 12, 24,36,48 or 60 month contract options and ask yourself how stable is the energy market?

Does your business expect changes in consumption?

Are you expanding or relocating? Flexibility can have value.

Step Five – Review Supplier Quality

The cheapest quote is not always the best option for businesses. You will need to consider, the level of customer service quality and response times from the supplier, ease of contract management, billing accuracy to name just a few. A slightly higher rate with a reliable supplier, with good customer service and favourable contract terms can save operational headaches later.

Step Six – Check Renewal & Termination Terms

Important questions:

• What is the notice period?

• Are there early termination penalties?

• What happens if you move premises?

Some supply contracts have charges payable to the supplier if your business vacates the property prior to the contract term ending. Additionally some brokers will also charge a fee should you fail to honour the contract terms that have been agreed so it is important to understand what you may be liable for later down the line.

Step Seven – Confirm your Consumption Assumptions

Quotes are based on annual usages, if one broker uses outdated or inflated consumption data it can distort the comparisons between suppliers and also brokers. Always verify that they are using the most recent 12-month usage, are they including seasonal variations? Incorrect assumptions can lead to inaccurate projections.

Step Eight – Ask about Risk Strategy not just price

A good broker should explain:

• Market conditions

• Wholesale energy trends

• Recommended contract timing

• Risk management strategy

If the conversation is purely about “today’s cheapest rate,” that’s a red flag.

Step Nine – Watch for Hidden Costs

Common Hidden or Misunderstood Costs can include

• Capacity charges
• Volume Tolerance Charges
• Environmental Levies
• Change of Tenancy/Early Termination Penalties

Step Ten – Evaluate Service Level & Ongoing Support

Some energy brokers only secure supply contracts, they do not provide post sale support or assist with disputes. Others offer ongoing account management, consumption monitoring, contract reminders and market reviews before renewal. The cheapest broker isn’t always the best long term partner.

Red Flags When Comparing Energy Broker Quotes

🚩 Pressure to sign immediately
🚩 Lack of written breakdown of costs
🚩 Refusal to disclose commission
🚩 Only one supplier option provided
🚩 Unclear contract terms

Transparency is essential.

Questions to Ask Every Energy Broker

How are you paid, and how much commission is included?

What elements of this quote are fixed vs pass-through?

What is the total estimated annual cost based on my real usage?

What happens if I terminate early?

When is the renewal notice deadline?

How will you support me after the contract is signed?

If a broker can’t clearly answer these, reconsider if this is the correct option to proceed with for you.

Should You Always Choose the Cheapest Quote?

Not necessarily.

The best choice balances:

• Competitive pricing

• Transparent commission

• Appropriate contract length

• Supplier reliability

• Risk management strategy

Energy contracts often last several years. A small oversight can have long-term cost implications.

Need Help Reviewing Competing Energy Broker Quotes?

If you’ve received multiple quotes and want an independent, side-by-side comparison, a professional review can help you:

• Identify hidden costs

• Understand risk exposure

• Negotiate improved terms

• Avoid expensive mistakes

Even small differences in structure can translate into substantial savings over the life of a commercial energy contract.