Protect Your Business from Hidden Costs, Misleading Contracts & Rising Energy Bills
Are you confident your business energy deal is fair? Many companies unknowingly fall victim to hidden fees, mis-sold contracts, and inflated prices, all designed to boost profits for energy suppliers and brokers.
In this blog, we reveal five industry secrets that business energy companies hope you’ll never discover and how you can protect your business from being overcharged.
1. Hidden Commissions Inflate Your Energy Costs
One of the biggest secrets in the business energy world is the use of undisclosed commissions. Brokers often add hefty mark-ups to your energy contract, sometimes more than you’d pay by going directly to the supplier. These commissions are rarely disclosed upfront and can significantly increase your monthly bills.
Worse still, suppliers may add their own commission on top of the broker’s, creating a double mark-up. These hidden costs often come with extra fees like admin charges or late payment penalties, making your energy deal far more expensive than expected.
Tip: Always ask for a full breakdown of costs and commissions before signing. Consider working with an independent energy consultant who can help you compare transparent quotes.
2. Mis-Sold Contracts Trap Businesses in Bad Deals
Mis-selling is a widespread issue in the energy sector. Brokers may fail to disclose key contract terms, such as automatic renewals, exit fees, or inflated rates. Some even renew contracts without proper consent, locking businesses into deals that don’t serve their needs.
Remember: You have the right to clear, honest information before committing to any energy agreement.
3. Bill Reliefs Are Often Withheld
Eligible for a discount? You might not be receiving it. Some suppliers have failed to pass on government-funded bill reliefs, leaving businesses paying more than they should.
For example, in 2023, EDF admitted that 2,000 business customers missed out on discounts due to system errors. These oversights cost businesses thousands over time.
Action Step: Check if your business qualifies for any relief schemes and confirm with your supplier that they’ve been applied correctly.
4. Contract Expiry Notices Are Often Missed
Many suppliers fail to notify customers when contracts are about to expire, leading to automatic renewals at higher rates. In one case, British Gas Business paid £5.6 million in penalties for blocking switches and failing to issue expiry notices.
If you’re unaware of your contract’s end date, you could be stuck paying inflated prices without realising it.
Tip: Set calendar reminders for contract reviews and always request written notice of expiry dates from your supplier.
5. Why Business Energy Prices Keep Rising
Despite stable wholesale energy costs, business energy prices continue to climb. Why? Because of:
- Layered commissions from brokers and suppliers.
- Early termination fees that discourage switching.
- Non-commodity charges (like network and policy costs) passed on to customers.
- Marketing schemes that push businesses into pricier contracts disguised as “cost-saving” options.
These hidden costs are rarely advertised but can dramatically increase your total energy spend.
Tip: Review your energy bills regularly and ask for a full cost breakdown, including non-commodity charges.
Take Control of Your Business Energy Costs
If you suspect you’ve been mis-sold or overcharged, don’t wait.
Our expert team at Business Energy Claims is here to help you uncover hidden fees, challenge unfair contracts and recover lost money.