Seven questions you must ask your energy broker

1. Did you genuinely tender our business across the whole market?

“Whole market” should mean more than contacting two or three familiar suppliers.

Ask for a complete tender record showing:

• Every supplier approached

• Every quotation received

• Suppliers that declined to quote

• The reasons suppliers declined

• Any suppliers excluded by the broker

• How the final recommendation was selected

Not every supplier will quote for every business. Credit, consumption, sector, meter type and contract structure can all affect supplier appetite. The important point is that the process is visible and properly documented.

2. Are you independent of the suppliers you recommend?

Ask whether the broker has:

• Preferred-supplier arrangements

• Exclusive supplier relationships

• Volume targets

• Enhanced commission agreements

• Supplier incentives

• Minimum placement commitments

These arrangements do not automatically produce a poor outcome, but they should be disclosed so that you can understand whether they might influence the recommendation.

3. Exactly how does your commission work?

Ask for the broker’s earnings to be stated in pounds and pence over the full contract term.

Clarify:

• Whether commission is added to the unit rate

• The commission rate per unit of energy

• The total forecast commission

• Whether the broker also charges a separate consultancy fee

• Whether commission varies between suppliers

• What happens if consumption is higher than forecast

• Whether commission continues after the broker stops providing services

A fraction of a penny per kilowatt-hour can become a substantial cost when multiplied across several sites and several years.

4. Why are you recommending this particular contract?

The cheapest headline price is not always the best overall contract.

Ask the broker to explain:

• Why the supplier was selected

• Whether the price includes all identifiable charges

• Contract length

• Fixed and pass-through elements

• Volume tolerance

• Change-of-tenancy provisions

• Additional-site and site-removal terms

• Renewable-energy credentials

• Payment terms

• Portal and customer-service functionality

• Risks associated with the recommendation

The answer should be specific to your organisation and its future plans.

5. What credit checks, deposits or security requirements apply?

Energy suppliers normally conduct credit checks before accepting a contract. Depending on the result, the supplier may request:

• A cash deposit

• A security deposit

• A parent-company guarantee

• A director’s guarantee

• Direct Debit payment

• Shorter payment terms

• Increased credit support

• Payment in advance

Ask whether the quoted price is conditional upon credit approval and what happens if the supplier changes its credit requirements during the contract.

Do not assume that accepting a quotation means the supplier has provided unconditional final approval.

6. What risks are contained within the contract?

Your broker should explain the risks before asking for a signature.

These may include:

• Early-termination charges

• Take-or-pay provisions

• Consumption-volume tolerances

• Charges for exceeding or falling below forecast usage

• Pass-through increases

• Deemed or out-of-contract rates

• Automatic renewal provisions

• Credit-support requirements

• Site addition or removal charges

• Change-of-ownership provisions

• Delays with meter registration

• Responsibility for inaccurate consumption forecasts

• Flexible-contract trading exposure

Request a plain-English risk summary alongside the supplier’s formal terms.

7. What support and data will we receive after signing?

Procurement should not end when the contract is signed.

Ask whether the ongoing service includes:

• Contract and renewal monitoring

• Supplier onboarding

• Invoice checking

• Meter-reading management

• Billing-query resolution

• Consumption reporting

• Market updates

• Budget forecasting

• Flexible purchasing reports

• Portfolio changes

• Support when opening or closing sites

• Named account-management contacts

• Portal training

• API or dashboard integration

Make sure these services are written into the agreement rather than relying on verbal assurances.