Energy broker commission rules: what UK brokers must do

The Standards of Conduct are rules for suppliers about treating customers fairly. They aren't a broker licence, but they matter to brokers because suppliers are responsible for how contracts are sold to their customers, including through intermediaries. Expect suppliers to check your scripts, your call recordings and how you describe prices.

For a brokerage, the practical effect is simple: give customers clear and accurate information, don't pressure them, and make sure they understand what they are agreeing to.

This means your fee is no longer hidden inside the unit rate as far as the customer is concerned. The business sees it in the contract it signs. Brokers who already explain their fee on the call find this change easy; brokers who avoided the subject need to change their script.

Tell the customer how you are paid before the contract is issued: whether the fee is built into the unit rate, the standing charge or both, and roughly what it amounts to. That way nothing in the principal terms comes as a surprise.

A redress scheme gives a small business an independent route to resolve a complaint about a broker. If you sell to micro and small businesses and you aren't in a scheme, suppliers can't accept those contracts from you.

Join a qualifying scheme before you sell to small businesses, keep a written complaints process, and make sure customers know how to complain. Record complaints, how you handled them and the outcome.

Until legislation is passed and Ofgem publishes its detailed approach, there is no broker registration to apply for. Treat any claim that you need a broker licence today with caution.

It is sensible to prepare anyway. Keep call recordings, consent records and fee disclosures in a form you could show a regulator, and review your sales process against the Standards of Conduct now rather than when a deadline is announced.

A short checklist: a sales script that explains your fee; a redress scheme membership if you sell to small businesses; call recordings stored securely; a record of how each lead's consent was collected; a complaints process with named responsibility; and a regular review of what you tell customers about prices and savings.

If you buy leads, ask your provider how consent was captured and what each enquiry agreed to. Our quote forms record the consent wording, its version, the time and the page it was given on.

Illustrative script: "We're paid by the supplier through the price you pay. On this quote our fee is included in the unit rate, and it will be shown in the contract's principal terms, so you can see it in writing before you sign." Adapt the wording to how you are actually paid, and never describe your service as free if your fee is built into the price.

If the business asks how much you earn, give a straight answer. A clear explanation on the call is far better than the customer discovering the figure in the paperwork and wondering why you didn't mention it. Note in your CRM that the fee was explained, and keep the call recording.

Train everyone who speaks to customers on the same wording, and review a sample of calls each month. Consistency matters more than polish: a supplier or a redress scheme will want to see that every customer heard the same clear explanation.

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• This is general information, not legal advice.