The short answer
A broker or intermediary helps you compare options from the providers it works with; the provider supplies the service and contracts with you. Before using one, ask which providers it covers, how it is paid, who you will contract with and how complaints are handled. For business energy, suppliers must only work with brokers in a qualifying dispute resolution scheme and must provide broker cost information.
Brokers, intermediaries and providers: who does what
| Role | What it does | Who you contract with |
|---|---|---|
| Introducer | Refers you to a provider | The provider |
| Broker | Compares options from providers it works with and helps you choose | Usually the provider |
| Reseller | Supplies a provider's service in its own name | The reseller |
| Provider / supplier | Supplies and supports the service | — |
How brokers are paid
Most brokers are paid commission by providers, which is often included in the price you pay; some charge fees instead.
There is nothing wrong with commission, but you should understand it. Ask how the broker is paid and how much, and whether it varies between the providers it recommends.
Questions to ask any business broker
- Which providers do you work with, and do you cover the whole market?
- How are you paid, and how much commission is included in this quotation?
- Who will I be contracting with, and can I see their full terms?
- What are the contract length, renewal and exit terms?
- What happens at the end of the contract?
- How do I make a complaint, and is there an independent dispute scheme?
- Will you be my point of contact after the contract starts?
Rules for business energy brokers
Energy suppliers must only work with brokers that belong to a qualifying dispute resolution scheme, and for non-domestic contracts agreed from 1 October 2024 they must provide information about broker costs.
These Ofgem rules give microbusinesses a route to an independent dispute scheme for complaints about energy brokers, and make broker commission more transparent for all non-domestic customers. The UK government has also announced plans to give Ofgem powers to regulate energy brokers directly.
Warning signs
- Pressure to agree immediately, or terms given only verbally.
- Unclear about which provider you would contract with.
- Promises of guaranteed savings — prices depend on the market and your usage.
- Reluctance to explain commission or complaints procedures.
How Meridian works
Meridian Merchant & Energy Solutions Ltd is a UK business solutions intermediary covering payments, energy, water and connectivity. We tell you which provider you would contract with, give you their terms before you agree, and explain how we are paid.
We work with a selection of providers rather than the whole market, and we will tell you on request which providers we work with for a service. Enquiries are free and there is no obligation to proceed.
Related solutions
Frequently asked questions
Is it more expensive to use a broker?
It depends. Broker commission is often included in the price, but a broker may also find options you would not have found yourself. Compare quotations and ask about commission so you can judge.
Can a broker guarantee savings?
No. Prices depend on wholesale markets, your usage and each provider's terms. Be cautious of anyone who guarantees savings.
Who do I complain to about an energy broker?
Start with the broker's own complaints process. Microbusinesses can then use the qualifying dispute resolution scheme the broker belongs to — ask the broker which scheme that is.
Sources and further reading
- Ofgem — Third Party Intermediaries: what your microbusiness needs to know
- Ofgem — Ofgem confirms greater protection for businesses
This guide is general information for UK businesses, not financial, legal or tax advice. Rules and prices change — check the sources above and your provider’s terms before making decisions.