Many businesses have become aware of energy broker commission disputes in recent years. However, undisclosed commission is only one way a business energy contract can be mis-sold.
Across the UK, businesses are discovering that they have been tied into expensive energy agreements through misleading sales practices, unauthorised contract renewals and even multiple contracts arranged without their knowledge. In some cases, these issues have resulted in businesses paying significantly above-market rates for years.
At Business Energy Claims, we assist businesses that believe they may have been affected by broker misconduct. Where appropriate, matters can be referred to our panel law firm, which pursues claims on a privately funded, solicitor-led basis.
Common types of energy broker mis-selling
1. Misrepresentation during the sales process
When discussing a new energy contract, brokers have a responsibility to provide accurate information.
Unfortunately, some businesses report being:
- Promised savings that never materialised
- Given misleading comparisons against current tariffs
- Told contracts were fixed when additional charges later appeared
- Assured agreements were short-term when they were actually multi-year commitments
If inaccurate information influenced your decision to sign a contract, you may have grounds for a misrepresentation claim.
2. Contract stacking
Contract stacking occurs when multiple energy agreements are arranged on the same supply point, often years in advance.
A business may believe it has signed a single contract, only to discover that further agreements have already been secured without its full knowledge or understanding. These contracts can lock businesses into long-term rates that are significantly above prevailing market prices.
For many businesses, the issue only emerges when they attempt to switch energy suppliers and discover additional binding contracts already in place.
3. Unauthorised switching
Also known as “backdoor selling”, unauthorised switching happens when a broker arranges a contract or supplier change without obtaining proper authority.
Common examples include:
- Agreements made through conversations with junior staff members
- Renewals arranged without director approval
- Supplier switches processed without clear consent
- Contracts relying on ambiguous sales calls
Businesses often discover the issue only when receiving bills from a new supplier or when trying to negotiate alternative energy arrangements.
What businesses can do
Any business that suspects it has been affected by one of these practices should keep records of correspondence with the broker, copies of the contract in question, and details of the rate paid.
Business Energy Claims reviews business energy disputes on a case-by-case basis. Where a claim appears to have merit, businesses may be introduced to our panel law firm, which can assess the matter and advise on available legal options through a direct solicitor-led process.
Looking for expert legal support?
Get in touch with Business Energy Claims for a referral to our panel of experienced solicitors.