Contract stacking has become increasingly common in energy broker disputes.
Many business owners are shocked to discover they are tied into multiple back-to-back energy agreements that they do not remember authorising. In some cases, businesses can remain locked into unfavourable contracts for several years without realising it.
What is contract stacking?
Contract stacking occurs when a broker arranges a future energy contract before an existing agreement has expired.
While this is not automatically improper, problems arise when businesses are not fully informed about what they are signing or are unaware that multiple future agreements have been arranged.
The result can be years of restricted choice and energy costs that exceed market rates.
How contract stacking happens
A typical scenario involves a broker contacting a business and encouraging it to secure future rates before anticipated market increases.
The business may believe it is simply discussing future options, while the broker treats the conversation as authority to arrange a binding agreement.
Years later, when the current contract expires, another pre-arranged agreement automatically begins.
Some businesses later discover they have two, three, or even more contracts linked together in this way.
Why contract stacking can cause serious problems
The consequences can be significant:
- Limited ability to switch suppliers
- Higher energy costs over extended periods
- Early termination fees
- Reduced access to competitive market rates
- Contracts lasting much longer than expected
Because business energy agreements are often fixed-term contracts, exiting early can prove extremely costly.
Can businesses challenge stacked contracts?
Potentially, yes.
If there is evidence that a contract was not properly authorised or that the business was misled regarding its purpose, duration, or pricing, legal remedies may be available.
Each case depends on its specific facts and supporting evidence.
Steps businesses should take
Businesses concerned about contract stacking should follow these 5 steps:
- Request a full contract history from their supplier.
- Review all agreements linked to the meter.
- Compare supplier records against internal records.
- Keep copies of emails, quotations, and call recordings where available.
- Seek legal advice if discrepancies emerge.
Need legal advice?
Get in touch with Business Energy Claims and we will connect you with one of our trusted specialist law firms.