Questions to ask your energy broker before you sign anything

Choosing an energy broker can feel straightforward, until you realise just how much money might be changing hands in the background. Before you sign your next energy contract, make sure you’re asking the questions that really matter. Here are the two big ones every organisation should be raising.

“How much commission do you earn from our energy contracts?”

Brokers are required to declare their commission. The trouble is, it’s not always front and centre. It’s often buried in the documentation and typically expressed as a p/kWh uplift. At first glance, this number can look tiny, but don’t be fooled. It can vary significantly depending on:

• Whether the contract is for gas or electricity

• Your annual consumption

• How much the broker believes they can “get away with”

• What level of service they intend to provide

For organisations with substantial usage, that small‑looking number can translate to tens of thousands of pounds over the life of the contract, sometimes over £100,000.

So, always make sure to:

• Ask exactly where the commission is disclosed in your documents

• Do the maths yourself, don’t rely solely on their explanation

• Understand what you’re paying for in relation to the services delivered

Important: Commission is calculated on your total kWh across the entire contract.

For example:

3‑year contract commission = Annual kWh × p/kWh uplift × 3 years

Even a small uplift quickly becomes a big number.

“What services are you actually providing?”

Most brokers will tell you something along the lines of:

“We constantly monitor the market to get you the best deal”

“We handle the paperwork and manage the switch for you”

Often, that’s the full extent of their involvement. To be fair, running a brokerage does involve system costs, staff time and many sales efforts that don’t lead to revenue. But there is still a limit to what is reasonable to charge.

Some brokers offer more comprehensive support, such as:

• Invoice validation and dispute resolution

• Cost and consumption reporting

• Budgeting and forecasting

These services can be valuable, but make sure you get absolute clarity on what is included. For example, some brokers will only investigate billing issues if you spot and raise them first.

Is Now Then Energy a Broker?

No, we are not a broker.

We are energy consultants, though some brokers do refer to themselves by the same title.

Here’s the key difference:

• We do not receive commission from suppliers.

• Our clients contract directly with us and pay for clearly defined services.

• We act as an outsourced Energy Manager, representing the client, never the supplier.

We are transparent and honest. And that’s how we believe the industry should operate.

In fact, it’s rare that we only manage contract renewals. Most new clients receive a significantly broader level of support from us, often for no more than they were already paying their broker in hidden commission for basic contract negotiation alone.