Executive Summary
In a time of spiraling energy costs and market unpredictability, businesses across Calderdale and beyond face a critical challenge: navigating energy procurement without compromising transparency or control.
While brokers promise market access and strategic insight, many operate on opaque commission structures that can distort incentives and inflate costs. This white paper cuts through the noise to ask a candid question: is your energy broker truly acting in your best interest?
Through firsthand insights from Baseline Power and local business leaders, we expose hidden costs, demystify “flex” contracts, and call for a fundamental shift in how businesses engage with energy procurement. The message is simple: transparency isn’t optional anymore, it’s the baseline.
The Broker Problem: Misaligned Incentives in Energy Procurement
Energy procurement was once a relatively straightforward process. You tendered, compared, contracted, and moved on. Now, with market spikes, unpredictable global events, and increasingly complex contract types, many organisations rely heavily on brokers to interpret pricing and secure favorable deals. But behind the scenes, a troubling dynamic persists: most brokers are paid on commission. This means their earnings are directly linked to the deal you sign, not how good that deal is for your business.
“It’s time we acknowledged the elephant in the room,” says Baseline Powers Founder, Andrew Hawley. “If your broker is incentivised to close quickly rather than strategically, who’s really benefiting from the timing of your purchase? It’s not just a theoretical risk, it’s a structural flaw in how the market operates.”
Commission driven models introduce a conflict: brokers may be encouraged to recommend contracts that boost their margins, not yours. This is especially true with flexible contracts, where pass-through pricing allows for ongoing charges and, in some cases, quietly embedded uplift fees.
Flex Contracts: Freedom or Financial Minefield?
At face value, flex contracts sound appealing. They offer the ability to track market trends and buy energy in phases, supposedly capturing dips and avoiding peaks. But the reality is more complicated.
“I’ve seen clients suffer tens of thousands in unexpected costs because their brokers locked them into so called flex deals that weren’t truly flexible,” says Sean, Director at Baseline Power. “These contracts come with shape fees, risk premiums, and management costs that are rarely itemised. You don’t know you’re overpaying until the invoice lands.”
Even worse, some brokers present flex contracts as bespoke solutions when, in fact, they are off-the-shelf deals with layered add-ons that pad profit margins. Without full visibility into these costs, clients are left exposed, not empowered.
“We need to stop romanticising ‘market agility’ if it’s built on smoke and mirrors,” adds Derren, Managing Director at Baseline Power. “True flexibility means clarity and control. Most businesses aren’t traders. They want stability with accountability, not a gamble dressed up as a strategy.”
Transparency Isn’t a Luxury, it’s a Strategy
The issue here isn’t just price. It’s trust. Hidden broker commissions, ambiguous contract terms, and passive risk exposure all erode the business-client relationship. That’s why Baseline Power is taking a different approach.
“We’ve built Baseline Power around one principle: clarity,” says Andrew. “If we can’t explain a fee in plain English, it doesn’t belong in the contract. If the timing isn’t in the client’s best interest, we don’t recommend it. It’s not revolutionary but in this industry, it still feels like it is.”
Baseline Power’s model prioritises transparency from first contact to final contract. Instead of incentivising sales teams with commissions, they structure deals around long-term client outcomes. That means no hidden uplifts, no passive costs buried in flex margins, and no pressure to sign before you’re ready.
“I genuinely believe we’re setting a new benchmark for procurement integrity,” Sean notes. “We’re not here to win one deal. We’re here to build multi-year relationships based on evidence, simplicity, and mutual respect.”
Conclusion: Demand Better, Demand Baseline
If you’re working with an energy broker today, ask them how they get paid. Ask them whether their recommendations are tied to commission targets. Ask them to itemise the shape fees, risk uplifts, and management costs inside your contract. If they hesitate, if the answer feels vague, or if the numbers don’t stack up, walk.
Baseline Power is building a new kind of procurement partnership. One rooted in transparency, credibility, and aligned incentives. Because in a world where energy decisions can make or break your bottom line, trust isn’t optional. It’s the baseline.
Now’s the time to reassess how your business buys energy. Let’s start a conversation that cuts through complexity and focuses on what truly matters: clarity, control, and community-first solutions.
Written by: Derren Woods
Date: 30th July 2025
About Us
Built on Trust. Driven by Transparency. Focused on You.
At Baseline Power Ltd, we believe energy procurement should be straightforward, honest, and built around your business, not hidden agendas or confusing contracts. That’s why we’ve created a service rooted in client-first values and radical transparency.
We’re not just energy brokers—we’re your partners in navigating the complex energy market with clarity and confidence.
If you’d like to find out more, you can check out the Baseline Power Website www.baseline-power.co.uk and click on the Contact Me page, call them on +44 (0) 01484 929545 or email hello@baseline-power.co.uk
