What Are Energy Broker Commission Claims?
Energy broker commission claims are legal claims made by UK businesses to recover undisclosed payments their energy broker received from the supplier. When a broker arranges your business energy contract, they are legally required to disclose any commission paid by the supplier and obtain your informed consent. Where that disclosure did not happen, you can make a claim against your energy broker, the supplier, or both.
The relationship between a business and its energy broker is typically one of agency: the broker acts on your behalf to find the best available energy deal. Under UK law, agents who act in this capacity have a fiduciary or contractual duty to disclose any payment they receive from the other party to the transaction.
Where a broker arranged your contract and received a commission from the supplier - whether through an uplift on the unit rate, a direct payment, or a volume bonus - without your informed knowledge and consent, you have grounds to pursue the return of that commission plus interest.
Common Types of Broker Commission
- Unit rate uplift: The broker adds a margin (e.g. 0.5p–3p per kWh) on top of the supplier's base rate. This isn't visible on your bill as a separate line item.
- Lump sum or fixed fee: The broker receives a one-off payment from the supplier per contract signed, often without telling the client.
- Volume bonuses: The broker earns a bonus for steering a certain number of clients to one supplier - creating an obvious conflict of interest.
- Renewal commissions: The broker continues to earn on renewal or rollover contracts, often without the client's awareness.
The Legal Basis for Your Claim
Claims are typically founded on the principles of undisclosed agent commission, as established in English contract law and reaffirmed in recent case law. Where a broker (agent) acts on behalf of a business (principal) and receives a secret profit from the counter-party (supplier) without the principal's informed consent, the principal is entitled to:
- Rescission of the contract
- Recovery of the commission as money had and received
- Damages where a loss can be established
- Compound interest on amounts recovered
Important: You do not need to prove the broker acted dishonestly. The duty to disclose applies regardless of intent - even if the broker believed their commission arrangements were standard practice.