Mis‑selling in the business energy market is far more common than many realise, costing companies thousands of pounds in unnecessary charges. From hidden broker commissions to confusing contract terms, the risks are real, but the good news is: you can protect your business.
This guide walks you through the key checks every business should make before signing (or challenging) an energy contract.
1. Know Exactly Who You Signed With
Many businesses aren’t aware whether they signed directly with a supplier or through a broker and that can cause problems later.
Why it matters:
Brokers often act as intermediaries, but if they fail to clearly explain terms, mis‑selling can occur.
✔ What to do:
Confirm the contracting party on your paperwork and ensure it matches what you were told verbally.
2. Request Full Commission Disclosure
Hidden broker commissions are one of the biggest contributors to inflated energy costs.
Why it matters:
Some brokers add large mark‑ups without telling you. These costs are baked into your unit rates — and can add up fast.
✔ What to do:
Ask for written disclosure of all broker fees and third‑party commissions.
3. Be Wary of Auto‑Renewal Clauses
Auto‑renewals can trap businesses in higher‑rate contracts without their permission.
Why it matters:
These clauses are often buried in the fine print, and once triggered, they’re hard to reverse.
✔ What to do:
Check renewal terms and set a reminder long before your contract end date.
4. Understand the Tariff You’re On
Fixed, variable and flexible tariffs each work differently — and not every tariff suits every business.
Why it matters:
Mis‑selling often involves pushing businesses onto tariffs that benefit the broker, not the customer.
✔ What to do:
Review whether your tariff actually fits your usage patterns and risk profile.
5. Compare Your Rates to Market Prices
If your prices are significantly higher than the industry average at the time you signed, that’s a red flag.
Why it matters:
Above‑market rates can indicate hidden commissions or unfair sales tactics.
✔ What to do:
Benchmark your contract against current market data or ask an independent specialist to review it.
6. Watch for Hidden Fees
Not all charges are obvious during the sales process.
Why it matters:
Unexpected admin fees, metering charges or steep early‑exit penalties can drive your total cost much higher.
✔ What to do:
Read all terms carefully and question anything that isn’t crystal clear.
7. Check the Contract’s Flexibility
Some contracts are so restrictive that they penalise you for even minor changes.
Why it matters:
Rigid terms or unreasonable exit fees are common signs of a poor‑quality or mis‑sold agreement.
✔ What to do:
Review whether you’re allowed to switch, upgrade, or adjust usage without being hit with penalties.
8. Verify Your Broker’s Credentials
Not all brokers operate to the same standards.
Why it matters:
Some sales agents work without proper accreditation, compliance procedures, or customer‑first practices.
✔ What to do:
Research the broker’s track record and confirm they follow industry codes of conduct.
9. Keep All Communication Records
Most mis‑selling happens through misleading verbal claims.
Why it matters:
Emails, call notes and paperwork become crucial evidence if you need to raise a dispute or claim compensation.
✔ What to do:
Store all communication in one place and note any verbal promises.
10. Know Your Rights
If you believe you’ve been mis‑sold, you may be eligible for contract cancellation or compensation.
Why it matters:
Thousands of businesses have successfully reclaimed money after discovering hidden commissions or deceptive sales practices.
✔ What to do:
Seek advice from specialists experienced in energy mis‑selling claims, not from brokers involved in the contract.
Mis‑selling in the business energy market is a real issue, but with the right knowledge, you can protect your business from unfair costs.
A careful contract review and awareness of the warning signs go a long way toward ensuring you’re paying a fair price for your energy.