Energy Broker
Save SMEs money on gas + electricity by switching suppliers and earn upfront commission
Save SMEs money on gas + electricity by switching suppliers and earn upfront commission.
As an energy broker, your day-to-day work involves researching energy suppliers, comparing tariffs, and advising SMEs on the best options. You'll spend time on the phone cold calling potential clients, managing leads, and following up with existing ones. Building relationships with suppliers and staying updated on market trends is crucial for providing the best service. Additionally, you'll handle the administrative tasks of processing contracts and managing commissions to ensure a smooth operation.
Now is an ideal time to start an energy brokerage due to the escalating energy prices and increased awareness of cost-saving measures among SMEs. The energy crisis has prompted businesses to seek out competitive rates and better deals, positioning brokers as valuable allies in navigating the complex landscape of energy supply. Moreover, the UK government continues to encourage energy efficiency and cost management, making your services even more relevant.
A founder suited for this role should have a background in sales or customer service, strong communication skills, and a basic understanding of the energy market. Realistically, you should expect to dedicate 15-20 hours a week initially to develop a client base and establish partnerships. Networking and building rapport with SMEs will be critical to your success, as well as ongoing education about industry changes and regulations.
Within 12-24 months, the potential upside is significant as you build a solid reputation and a loyal customer base. With effective marketing and a focus on customer service, you could generate £50,000 to £100,000 in revenue. Scaling your business could lead to higher commissions per contract and the possibility of hiring additional brokers to expand your reach.
- Sales
- Negotiation
£200–£2k upfront per contract
You can expect a gross margin of around 70% on each contract after costs.
The current energy crisis in the UK has led SMEs to seek out cost-saving solutions, making energy brokers highly sought after. With energy prices fluctuating, businesses are more open to switching suppliers to save money.
Small and medium-sized enterprises (SMEs) across various sectors that are looking to reduce their energy costs. These businesses often lack the time or expertise to navigate the energy market effectively.
The UK energy brokerage market is estimated to be worth over £1 billion, with a growing number of SMEs becoming aware of the potential savings. Recent reports indicate that businesses can save up to 30% on energy costs by switching suppliers, highlighting the value of brokers.
Revenue & pricing
You will earn upfront commissions ranging from £200 to £2,000 per contract, depending on the size of the business and the energy savings achieved. This model encourages you to find the best deals for your clients.
- Basic service: £200 per contract for switching suppliers.
- Premium service: £500 per contract with ongoing energy consultancy.
- Corporate package: £1,000 per contract for large SMEs with complex needs.
- Annual subscription model: £2,000 for ongoing monitoring and switching services.
Costs
- TPI cover£200
- Marketing materials£100
- Website hosting£100
- Business registration£12
- Phone/communication costs£88
- Website maintenance£20
- Phone/communication£30
- Marketing/advertising£50
- Accounting software subscription£15
First steps
- 1Get TPI cover
- 2Partner with supplier panel
- 3Cold call SMEs
Your first 90 days
- Register your business and obtain TPI cover.
- Build a simple website to showcase your services.
- Develop a targeted call list of potential SME clients.
- Create marketing materials to explain your services.
- Start cold calling and networking with local business groups.
- Secure your first contracts and earn commissions.
- Establish partnerships with at least three energy suppliers.
- Refine your sales pitch based on initial feedback.
- Launch a basic online marketing campaign.
- Attend networking events to increase visibility.
How to get customers
Cold calling
Directly reach out to SMEs to introduce your services.
Networking events
Attend local business meetings to build relationships.
Social media
Use platforms like LinkedIn to connect with business owners.
Email marketing
Send informative emails to your contact list about energy savings.
Tools you'll actually use
| Tool | Cost | Why |
|---|---|---|
| Tide Business Account | Free | For managing business transactions. |
| Xero Accounting Software | £10/month | To manage invoices and accounting. |
| Calendly | Free | To schedule meetings with clients easily. |
| GoCardless | 1% fee per transaction | For easy direct debit payments from clients. |
| Notion | Free | To organize notes and client information. |
Common mistakes to avoid
- Neglecting to research energy suppliers thoroughly.
- Failing to follow up with leads in a timely manner.
- Overpromising and underdelivering on savings.
- Not keeping up with energy market trends.
- Ignoring the importance of customer service.
How to scale this
- 1Start as a solo broker focusing on local SMEs.
- 2Build a reputation and gather testimonials from satisfied clients.
- 3Hire additional brokers to expand your client reach.
- 4Develop a referral program to incentivise existing clients.
Risks & mitigations
Regulatory changes affecting the energy market.
Stay updated on regulations and adapt services accordingly.
High competition from established brokers.
Differentiate through exceptional customer service.
Potential for low conversion rates from cold calls.
Refine your pitch and target the right businesses.
Market fluctuations leading to reduced savings.
Continuously monitor market trends to advise clients effectively.
UK legal & compliance
- Register your business with Companies House to comply with UK laws.
- Ensure you have appropriate insurance cover for your brokerage activities.
- Obtain the necessary licenses if required by the FCA for financial advice.
- Comply with GDPR by protecting client data and ensuring privacy.
FAQ
How do I find SMEs to contact?
You can use local business directories, networking events, or social media.
What if a client is unhappy with their new supplier?
Assist them in understanding their options and support them through the switching process.
How long does it take to switch suppliers?
Typically, the process can take 4-6 weeks from initiation.
Can I operate this business part-time?
Yes, many brokers start part-time while building their client base.
What happens if I miss a commission payment?
Contact the supplier immediately to resolve any issues with payments.
Written and maintained by
Business Pathfinder Editorial TeamEditorial research and publishing team
The Business Pathfinder Editorial Team researches and maintains practical guides for UK founders.
Guides are reviewed against relevant primary sources where practical. Financial, legal and tax content is general information, not personal advice.
Turn this idea into a useful next step
These practical playbooks help you validate demand, manage early commitments and make setup decisions before you spend heavily.
Validate a business idea before you spend heavily
A practical seven-day validation plan for UK founders: define a customer problem, test demand, price a small offer and decide what evidence you need next.
Build a practical path to your first 100 customers
A founder-first system for choosing a narrow audience, making an offer, creating a customer list and learning which acquisition channel earns a repeatable next step.
Ready to start this one?
Every business idea on this site needs two things from day one: a separate business bank account and a way to float expenses. Here are the two we recommend.
Tide Business Account
A digital business account with Free, Smart, Pro and Max plans; suitability and protection depend on account type.
Get £75 after spending £100 on the Tide card within 30 days. Get a further £125 by opening an eligible Tide Instant Saver, depositing £5,000 within seven days and maintaining the qualifying balance for 30 days. Eligibility and campaign terms apply.
- Free plan available with no monthly fee
- Up to £200 partner reward: £75 for £100 card spend plus £125 for an eligible Instant Saver balance held for 30 days
- Open and manage the account in the app
- Accounting integrations including Xero, QuickBooks, FreeAgent and Sage
- Expense categorisation and receipt capture
Capital on Tap Business Credit Card
A UK business credit card offering 1% uncapped cashback, subject to eligibility.
Worth £75. Awarded after your first card transaction within 30 days of sign-up, subject to approval, eligibility and campaign terms.
- 7,500 bonus reward points worth £75 after your first card transaction within 30 days
- 1% uncapped cashback on eligible spending
- No joining fee or annual fee
- Free additional employee cards
- Accounting integrations and spend notifications