Was your business misled into signing an energy contract?

Was the information provided before the contract was signed accurate?

Businesses often rely on energy brokers and consultants when comparing suppliers and negotiating energy contracts. If the information provided during the sales process was false, misleading or incomplete, there may be grounds for a misrepresentation claim.

In this guide, we explain what misrepresentation is, how it can arise in the business energy sector and what evidence may help support a claim.

What is misrepresentation?

Misrepresentation occurs where a false or misleading statement influences a business to enter into a contract.

In the energy sector, this can occur during sales calls, email exchanges, quotations, presentations or other communications before an agreement is signed.

The key issue is often whether the business relied on the information provided when deciding to enter into the contract.

Common examples of energy contract misrepresentation

Every case depends on its facts, but businesses frequently report being told that:

• The proposed contract would deliver substantial savings compared with their existing arrangement.
• The rate was fixed when additional charges later applied.
• The agreement was short-term when it actually contained a lengthy contractual commitment.
• Wholesale energy prices were about to rise significantly, creating pressure to sign quickly.
• The proposed tariff represented the best or cheapest option available in the market.
• The contract included certain services, flexibility or termination rights that were not reflected in the final agreement.

If these statements prove to be inaccurate, it may raise questions about whether the business made an informed decision when agreeing to the contract.

Why does misrepresentation matter?

Businesses are entitled to make commercial decisions based on accurate information.

Where key information is misleading or important facts have been omitted, the contract entered into may not reflect what the business believed it was agreeing to. In some circumstances, this can give rise to legal remedies.

Misrepresentation claims are distinct from commission-related claims. While commission disputes focus on undisclosed broker remuneration, misrepresentation claims focus on the information provided during the sales process and whether that information influenced the decision to contract.

What evidence can support a misrepresentation claim?

Evidence is often critical in establishing what was said and whether a business relied upon those statements.

Relevant evidence may include:

• Written quotations
• Sales emails
• Marketing materials and brochures
• Telephone call recordings
• Contract documents
• Internal notes or correspondence relating to discussions with the broker
• Supplier or broker communications before the contract was signed

Comparing these materials with the actual terms of the contract can sometimes reveal significant discrepancies between what was promised and what was ultimately delivered.

What should you do if you believe you were misled?

Gather your documents

Collect all available documentation relating to the sales process, including emails, quotations, contracts and marketing materials.

Create a timeline

Record when discussions took place, what representations were made and how those statements influenced your decision to enter into the contract.

Avoid making assumptions

Not every disappointing contract will give rise to a claim. The question is usually whether inaccurate or misleading information was provided and whether the business relied on it when making its decision.

Seek specialist legal advice

Misrepresentation claims are highly fact-sensitive. Obtaining advice at an early stage can help preserve evidence and clarify the strength of any potential claim.

FAQs

Can a verbal statement amount to misrepresentation?

Potentially. Misrepresentation is not limited to written communications. Statements made during telephone calls or meetings may be relevant, particularly where recordings, notes or witness evidence are available.

What if the contract says something different from what I was told?

This is a common issue in misrepresentation disputes. The existence of written contract terms does not necessarily prevent a business from arguing that it relied on misleading information provided before signing.

Is poor advice the same as misrepresentation?

Not always. A claim will usually depend on the specific statements made, whether they were inaccurate, and whether they influenced the decision to enter into the contract.