How SME Powers Gets Paid

At SME Powers, our compensation is straightforward and transparent. We are paid a commission by energy suppliers for introducing our customers to their gas, electricity, and associated services. Importantly, you, as the customer, will never be asked to pay us directly. The commission we receive is paid directly by the supplier, and it covers the full range of services we provide, including price comparison, tariff negotiation, switch management, and ongoing customer support and account management.

Our commission helps fund the services we offer to your business, ensuring you benefit from the best available rates while receiving high-quality, ongoing support. This model also allows us to keep our services free for you, focusing on delivering long-term value and helping you manage your energy costs effectively.

Here’s how our commission structure works:

• Commission Included in Your Energy Contract: When you sign an energy contract through SME Powers, our commission is factored into the overall unit cost of your energy usage. This means the commission is reflected as a small uplift in the energy price that you pay, which typically ranges from a few pence per kilowatt-hour (kWh). The cost of this uplift is built into your energy contract and is not an additional charge you pay directly.
• How the Uplift Works: For example, let’s say we secure an electricity rate of 30 pence per kWh for your business. We may apply an uplift of 0.8 pence per kWh, meaning the final rate you pay would be 30.8 pence per kWh. This uplift is the amount that forms the basis of our commission. The exact uplift varies depending on your contract and energy usage but is generally under 1 pence per kWh.
• Commission Calculation: Our commission is calculated by multiplying the uplift by your total energy consumption over the contract period. For instance, if your business consumes 100,000 kWh of electricity throughout the year, and the uplift is 0.8 pence per kWh, the total commission earned by SME Powers would be £800 for the contract term. This is typically about 2.5% of the total retail price of the energy contract, although it may vary based on usage and supplier.
• Commission and Forecasted Usage: Since commissions are based on estimated future energy consumption, they are forecast amounts, and actual commissions may fluctuate depending on your business’s actual energy usage over time. This ensures you only pay for the energy you actually use, but it also means commissions can vary if consumption changes.
• Payment Terms: The commission payment schedule is determined by the energy supplier. This means the exact timing of when we receive our commission can vary. Additionally, energy suppliers may adjust their commission structures over time, which could also impact the commission we receive.

At SME Powers, we prioritize transparency and ensure that all aspects of our service, including how we are compensated, are clear to you. We never want you to feel uncertain about how we operate. Our goal is to help you manage your energy costs effectively while offering the highest level of customer service.

Want More Details?

If you would like further clarification about the commission structure or have specific questions about your contract, feel free to reach out to us. We are always happy to provide a detailed breakdown and ensure that you fully understand how our compensation works.