The Murky World of Energy Contracts

The Murky World of Energy Contracts

How brokers are paid and how that affect your energy prices

How are energy brokers paid?


You may or may not be aware that typically, when you sign an energy contract using an energy broker/TPI, you are paying a commission uplift on top of the base rates that the energy supplier has given an energy broker.

An uplift in simple terms is the commission that your broker will make for you signing the contract. If your business uses a medium to large amount of energy, you will undoubtedly receive bespoke quotes from numerous suppliers.

Again, the energy broker is given these at a base rate and then they build an uplift. Therefore, the total amount you will pay will include the base rate and the commission uplift. The energy supplier pays the broker in most cases unless your broker offers a 1 off consultancy fee and you have been sold the prices at base rates.

How much commission am I paying?


The energy contracts that businesses typically receive from energy brokers DO NOT state the commission uplift. Therefore, unless your energy broker has confirmed in writing what they have built into the price, you’re none the wiser.

The commission amount is also not specified therefore as a customer you are somewhat deceived in what the energy broker is paid for by the supplier (Remember it’s sold to the broker at base and then they add in the uplift to make their money).

You can go directly to your supplier and ask them how much uplift the broker has built into a contract; you can also ask your broker how much they have built into price to work out how much a broker has made on your particular contract.


But what about the gimmicks offered by other brokers?


You may be familiar with so called “benefits” that brokers can offer you such as:

  • Cash Back
  • Free Installation of Energy Management System (EMS)
  • Gifts such as high street vouchers

You may be unaware of this, but you are paying for these “benefits” through your energy contract. The cosy will have been factored into their uplift and your company will be paying higher unit rates as a result.

We get better prices than other brokers. We all have the same relationships with the same suppliers, some brokers might have 1 or 2 that we don’t but the chances are minimal, and it comes down to how much uplift that brokers put in that makes them competitive or not!

Some brokers just put in the maximum uplift that the supplier allows and don’t care about the affordability for your business just their commission.


How Are Tribe Different to Other Brokers/TPI’s?


Unlike most brokers, Tribe are transparent. We won’t just state that we are, but we will show it through confirming with you in writing before you sign any contracts what uplift we have built into the contract or let you decide based upon the work we have carried out.

We will never hide our uplifts from you.

We will always disclose our contracted commission amount, so you are able to see clearly how much we are to be paid by the supplier. Furthermore, we offer a unique cost approach whereby we provide a base rate price and allow the customer to take control over their uplift based upon the work we have completed – We are 1 of a few in the whole industry that offer this service.

We do not forget about you once a contract is signed; our relationship and account updates are ongoing throughout the contract. In addition, we work with a legal partner who can help with any mis-sold contracts and help you recover costs.



For all other enquiries or questions, contact our team today.