Like many other businesses, energy brokers typically add a margin to the products they sell.<\/p>\r\n\r\n\r\n\r\n
Some charge their clients a monthly fee or a percentage of savings, but the vast majority add an uplift to a client\u2019s unit rates.\u00a0<\/p>\r\n\r\n\r\n\r\n
This is often preferred because it means the fees are included within the energy costs, rather than a separate bill. It can however result in transparency issues if the broker doesn’t disclose their margin.<\/p>\r\n\r\n\r\n\r\n
Businesses should be wary of any broker claiming to offer a free service because, frankly, this is usually false.\u00a0 Energy brokers are commercial companies and, like any other, they exist to make profits.<\/p>\r\n\r\n\r\n\r\n
Whilst the commission paid to brokers is sent to them by the energy suppliers, the supplier adds an equivalent amount to the customer\u2019s unit rates, so in reality, it\u2019s the customer that pays the broker\u2019s fees.<\/p>\r\n\r\n\r\n\r\n
If an electricity supplier offers a base rate of 11.5p per kWh, and the broker requests an uplift of 0.5p, the rate on the customer\u2019s contract will be 12p. \u00a0<\/p>\r\n\r\n\r\n\r\n
To calculate the broker’s fee, simply multiply your electricity usage by the broker’s margin.<\/p>\r\n\r\n\r\n\r\n