UK Energy Brokerage

Business energy brokers – sometimes known as Third Party Intermediaries or TPIs – work as intermediaries between energy suppliers and businesses who need an energy contract. Energy brokers usually have working relationships with one or more energy suppliers and can search the market to find competitive contracts on behalf of the business looking to source energy. Energy brokers might offer a range of contracts for customers to choose from, depending on the customer’s needs.  Using a good energy broker can usually help businesses save the time, hassle and risk of comparing the energy market themselves, and can also provide businesses with access to better energy deals than they might find themselves.  

If your business aims to significantly reduce the time spent on sourcing energy, needs support with energy contracts, or is looking for ways to reduce energy costs, using an energy broker could be the right solution. Using a good energy broker can help businesses in several ways, from saving time researching and comparing the energy market to helping businesses manage the actual switch to a new tariff or a new supplier.  Some energy brokers, such as World Kinect, can also offer additional services, for example helping advise clients about their commercial energy consumption, how to be more energy efficient, and how to help minimise the impact of volatility in the energy market caused by global events. 

The UK energy regulator, Ofgem (the Office of Gas and Electricity Markets), has been aiming to improve the experience of non-domestic energy consumers when choosing tariffs and making energy decisions. As a result, energy suppliers should only be working with brokers who are accredited and signed up to a qualifying Dispute Resolution scheme (also known as an Alternative Dispute Resolution scheme, or ADR scheme), which helps support businesses in the event of a complaint or issue. There are also voluntary accreditations that brokers can be members of, for example the Utilities Intermediaries Association (UIA), which governs the brokers and consultants within the business utilities sector and which operates a formal Code of Practice. World Kinect has been an accredited member of the UIA since 2006.

Energy brokers get paid commissions by energy suppliers. Typically, the energy broker’s commission is incorporated into the electricity or gas supplier’s price as a pence-per-kWh uplift, or occasionally as an upfront or fixed fee when a new contract is signed. The fee is included in the contracted rates that businesses pay their energy supplier. Commission rates vary between brokers and can range from 0.05 to 5 pence-per-kWh.

•    If you’re considering working with an energy broker, you’ll need to inform the broker of your business’s energy requirements. This includes your consumption and usage, as well as specifics such as whether you want to only use green energy, expected fluctuations in your consumption, or the names of any specific suppliers you either do or don’t want to use.
•    It’s worth checking how the energy brokers will charge their fees. Most often, energy brokers charge a service fee that’s included in your energy bill but, for some additional services, you might need to pay fees for the broker's services up front.
•    Check which suppliers the energy broker works with. Good brokers will work with a wide range of suppliers and can provide access to all the available tariffs and discounts. 
•    Check the terms and conditions of the broker’s service and read about how to avoid unfair terms in sales contracts on GOV.UK. Ofgem, Britain’s energy regulator, also publishes energy advice for businesses.
•    Check whether the broker will send you your offer along with its terms and conditions before you agree to a business energy contract.  Don’t forget, if you agree to a contract over the phone, it will be legally binding and you won’t be able to change your mind. 

For a broker to search the market on a business's behalf, a Letter of Authority (or similar authorising document) is required. This letter won’t mean you’re liable to pay any brokerage fees, but it does give the broker authorisation to liaise with suppliers on your behalf.  The letter is an essential step for enabling the broker to do their job of negotiating and quoting, as well as switching energy provision if your business chooses to use the broker’s services.

A Letter of Authority (or LOA) is a document used to reach an agreement between three or more parties. Essentially, it’s a special permission slip that you give to an energy broker, letting them speak with other businesses on your behalf within agreed limits. A Letter of Authority allows your chosen third party to do things like: tender out to energy suppliers on your behalf based on your requirements, obtain offers from suppliers for you to sign up to, manage the switching process and manage any account queries.

Of course!  Businesses can go directly to the energy suppliers themselves if they choose to, and there are more than 100 gas and electricity suppliers to choose from in the UK. It’s worth noting, though, that comparing the energy market and finding the most suitable tariffs for your business can be a complex and time-consuming job. Also, businesses might not get access to all the available energy deals that a broker can access.  If your business prefers to deal with energy suppliers directly, you may still be able to leverage energy brokers to help with additional products and services. For example, in addition to energy procurement and brokerage, World Kinect can still help with Client Services and Energy Services as well as Sustainability Solutions. 

Although we believe the benefits of using a good energy broker easily outweigh the pitfalls, unfortunately – like many commercial sectors – some disreputable energy brokers in the market can lack expertise, and sometimes can’t be trusted to act in their customers’ best interests. Some brokers might use ‘hard sell’ tactics to pressure businesses into signing contracts that aren’t necessarily right for them.  Others might grab customers’ attention with energy deals and discounts which look appealing in the short term but then recommend energy tariffs that don’t make commercial sense in the long run.  

At World Kinect, we follow a strict code of practice and offer fair, honest and transparent energy brokerage that always serves our customers’ best interests.  Our 35-year track record has given us a solid reputation and unbeatable expertise in utility provision, which means that our customers can count on our advice and support on everything from choosing a new tariff and completing the switch to making their business more sustainable and compliant.  We’re also a Fortune 100 company and a fully accredited member of the Utilities Intermediary Association in the UK, which helps underline our credentials as a reputable and trustworthy company. 

Business energy brokers typically work with SMEs and microbusinesses, although we can also serve larger businesses. At World Kinect, we also act as energy consultants and offer related energy procurement services to mid and large businesses around the world, as well as energy supply across the US and Europe. 

There’s no set timeframe to start looking for your next contract. Even if you’re still in contract with an energy supplier or have only just started a new contract, an energy broker could help offer insight into the market and help you identify the best time to secure your next contract.

Yes, a good energy broker should provide a knowledgeable account manager. At World Kinect, all our customers across the UK benefit from a named account manager who can help with ongoing questions about energy contracts and usage, as well as securing new contracts at the time of renewal.

This depends on the energy broker.  Some brokers will pick suppliers based on reputation, supplier service levels, ability to get a suitable third-party agreement or other criteria. However, a good energy broker should work with a range of suppliers to ensure varied access to the products available in the market. World Kinect works with a wide range of major energy suppliers in the UK for electricity, gas and water.

There are various energy contract types available to suit the needs of different businesses, but generally, contracts can be considered as Fixed or Flexible. Fixed contracts, where the unit price is fixed and known for a set period, can offer more budget certainty, whereas Flexible contracts offer more flexibility for your purchasing needs. Within these contracts with World Kinect, you can also choose the type of energy you want, for example brown, nuclear, biomass, natural (wind, solar, hydro), or carbon offset. Contact our expert team to discuss which contract type might be most suitable for your business.

If you don’t change your contract before it expires, your supplier will probably move you to variable tariffs, which are usually much more expensive than the rates you may have had on your previous energy contract. This occurs when you reach the end of your fixed tariff without making arrangements to renew or switch business energy suppliers. Each supplier will have different procedures for these situations, but some common examples include a new 12-month automatic renewal, on a variable or deemed rate.

No, not all energy brokers offer the same deals. Some brokers may have commercial relationships with specific energy suppliers, which could influence the options they present to their clients. Energy brokers will only have access to products and deals for those suppliers they have an agreement with. Suppliers may offer differing deals to brokers, depending on requirements and expertise. Other factors can also influence the deal an energy broker will get, such as market conditions, price volatility and regulatory changes.

Energy prices are subject to fluctuations and volatility for various reasons, but some of the most common include supply chain issues, oil price changes and the state of national and global economies. As we see more and more at the moment, climate change and global political instability can also have an impact on the price of energy.  You can request our webinars for helpful market updates and information about price volatility.