In the UK, most businesses don’t buy their energy directly from suppliers. Instead, they go through brokers—also called Third Party Intermediaries (TPIs). These middlemen are meant to make things easier, but the way the market is set up often works against businesses. At Vester, we believe it’s time to shine a light on how things really work—and why transparency matters more than ever.
The Hidden Cost of “Free” Advice
Brokers often present themselves as free advisors, but in most cases, they’re getting paid by the supplier—directly through your energy bill. Their commission is hidden inside the unit rate you pay for electricity or gas, often without you even knowing.
- Suppliers offer higher commissions to win more brokered business.
- Brokers are incentivised to pick the supplier that pays them most—not the one that saves you money.
- You end up with a higher bill and no idea why.
How Much Is This Really Costing You?
It’s not uncommon for broker commissions to add 2–5p per kilowatt-hour to your rate. Multiply that over a year and you could be paying thousands more than necessary -without ever seeing the cost line itemised.
Example: A 1 GWh contract with a 3p/kWh uplift = £30,000 in hidden broker fees.
It’s Not Just Bad Practice—It’s Being Challenged in Court
Thousands of small businesses are now taking legal action over these secret commissions. Some brokers and suppliers are under investigation, and cases have already led to multi-million pound claims.
- The Guardian: Secret broker fees spark lawsuits
- Pinsent Masons: Legal rulings on broker commissions
- Ofgem: Non-domestic market reforms (2024)
What Is a Microbusiness—and Why It Matters
Ofgem offers extra protection to businesses classified as microbusinesses. These protections include the right to know if you’re paying broker commission and access to the Energy Ombudsman for complaints.
To qualify, your business must meet any of the following:
- Fewer than 10 employees (or full-time equivalents)
- Annual turnover or balance sheet total of less than €2 million
- Annual electricity use of less than 100,000 kWh or gas use under 293,000 kWh
Unfortunately, we’ve seen cases where suppliers or brokers have asked businesses to opt out of microbusiness protections—even when they clearly qualify. This is unacceptable. If your business meets the criteria, you have a legal right to fair treatment.
If you’re unsure where you stand, get in touch and we’ll help you assess your status – and make sure you’re not being taken advantage of.
What Can You Do About It?
If you’re unsure whether you’re paying a fair price – or whether your broker is working for you or against you – here are some steps to take:
- Ask your broker for written confirmation of their commission—don’t accept vague answers.
- Compare direct quotes from suppliers with any broker offer.
- Work with partners who put transparency first – and don’t take kickbacks.
At Vester, we don’t take commissions. Our only incentive is to get you the best possible outcome.
Got questions? Need clarity? Our team’s here to help — whether it’s a quick query or a deeper dive into your energy setup. Either:
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Transparency shouldn’t be revolutionary. But in the UK energy market, it still is. We’re here to change that.