The TPI Code of Practice: Why Broker Commission Transparency Matters

If you've ever used a broker to source a business energy contract, you may not have realised that the broker doesn't charge you a fee directly — instead, they're paid a commission by the supplier, built into the rate you're ultimately quoted. This is standard practice across the industry, but it only works fairly for the customer if it's disclosed openly rather than buried in the small print.

That's the purpose of the Third Party Intermediary (TPI) Code of Practice, an Ofgem governance framework that sets out how energy brokers, consultants, and price comparison services should conduct themselves. Under the Code, a compliant broker must disclose their commission structure and present impartial supplier options — not simply steer a business toward whichever supplier pays the broker the highest commission.

In practice, this means a business working with a TPI Code-compliant broker should be able to ask, and get a straight answer to, two questions: how much commission is built into this quote, and how many suppliers did you actually compare before recommending this one? A broker unwilling to answer either question directly is worth treating with caution.

Commission itself isn't a red flag — it's how the broker gets paid, and it's baked into a genuinely competitive rate the same way a mortgage broker's fee is baked into loan terms. The problem only arises when it's hidden, inflated without disclosure, or when it distorts which supplier gets recommended. Whole-of-market comparison across a wide panel of suppliers, with commission stated upfront, is what the Code is designed to guarantee.

If you're evaluating a broker relationship, it's worth asking for the commission figure in writing before signing anything, and comparing it against what you'd expect for the size and complexity of your contract. A transparent broker will have no issue providing this — it's a basic requirement of doing business under the Code, not a special favour.