Navigating the energy market can be tricky. With countless tariffs, brokers and contracts, it can be easy to get lost in confusing jargon, especially when looking for the best deal. Unfortunately, businesses sometimes find themselves unknowingly locked into mis-sold energy contracts, which can lead to significant financial consequences. If energy brokers or providers mislead or fail to fully disclose terms, it could be considered a mis-sell and you may be entitled to compensation.
So, how do you know if your business has been mis-sold an energy contract? Let’s break down the most common scenarios.
Common Scenarios of Mis-Selling
- Inaccurate Pricing
This is one of the most frequent complaints. You might have been promised savings or lower rates, only to find out that your energy costs skyrocket due to hidden fees, fluctuating rates or unexpected price hikes. If the price isn’t as advertised or if you’re paying more than expected, this is a clear sign of mis-selling. - Failure to Disclose Fees & Penalties
Energy providers and brokers are required to disclose all fees, including exit fees, early termination charges or penalties for changes to the contract. If these were not clearly explained to you or if you were blindsided by surprise costs, you may have a valid mis-selling claim. - Misleading Terms About Contract Duration
Another common issue arises when businesses are sold long-term contracts under the impression that they’ve agreed to something short-term. If you were misled about the length of the contract, you may find yourself locked in for years with hefty penalties if you decide to switch providers. - Pressure Selling Tactics
Some businesses are subjected to high-pressure sales tactics that rush them into signing contracts without giving them enough time to read and understand the terms. This is often a clear sign of a mis-sold contract. If you were pressured into signing on the spot or felt uncomfortable with the process, it’s worth investigating further.
How to Identify a Mis-Sold Contract
Still unsure whether you’ve entered into a mis-sold contract? Ask yourself the following:
- Were you provided with all the relevant terms, fees and conditions before signing?
- Did the broker or salesperson put pressure on you to sign quickly without reviewing the contract thoroughly?
- Was there transparency regarding any hidden fees or charges?
- Did the terms of the contract match what was promised during initial negotiations?
What to Do If You’ve Been Mis-Sold an Energy Contract
If you suspect your business has been mis-sold, it’s important to act quickly.
Here’s what to do:
- Review Your Contract Thoroughly
Go over your energy contract with a fine-tooth comb. Compare it to any quotes or promises made by the broker or energy provider. Pay particular attention to pricing, duration, exit fees and hidden charges. If something doesn’t match up, you could have grounds for a claim. - Seek Legal Advice
At Business Energy Claims, we specialise in helping businesses like yours understand the fine print of energy contracts. Our expert solicitors can guide you through the complexities of your contract and provide you with the best course of action. Whether it’s negotiating a cancellation or seeking compensation, our team is here to help. - Consider Making a Claim
If your contract was mis-sold, you might be entitled to compensation. Our team can assist you in filing a claim against the energy broker or provider. We’ll help you either reverse the contract or secure financial restitution for the damage caused.
Protect Your Business
Being mis-sold an energy contract can result in significant financial strain, impacting everything from cash flow to profitability. At Business Energy Claims, we’re here to help you get the compensation and justice you deserve. Our team of energy and legal experts are dedicated to ensuring you are not left out of pocket.
Don’t wait for costs to spiral out of control.
If you suspect your contract may have been mis-sold, speak with our team to reclaim what’s rightfully yours.