Hidden Commission In Business Energy Contracts

by | Feb 20, 2021

Hidden Commission In Business Energy Contracts

An average of £1500 in commission is added by energy brokers and comparison sites for using their service. 

The power companies don’t pay this commission, you do.

Example 1 – High User  

You agree a 2 year energy contract, your broker includes 0.007 £/per/kWh commission in the unit rate. Your annual consumption of energy is 737,837 kWh’s. Total commission paid to the broker is £10,329.71

Example 2 – Low User

You agree a 5 year energy contract, your broker includes 0.01 £/per/kWh commission in the unit rate. Your annual consumption of energy is 35,398 kWh’s. Total commission paid to the broker is £1,769.90

Commissions for even very low, energy consuming businesses can be several hundred pounds a year, while larger energy consumers such as care homes, hotels and restaurants can find literally thousands of pounds added on in hidden commission.

Some sites and brokers are obscuring the amount of commission they earn by declaring it in pounds per kWh instead of the pence per kWh format that electricity and gas tariffs are quoted in. A commission of 0.01 £/per/kWh on the face of it,  doesn’t look too bad. However, in reality it will increase your unit rate from 12 pence per kWh to 13 pence per kWh, that’s 8% of your energy costs in commission!

“It’s not unheard of for broker commission to account for 50% of a business users energy costs”.

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