Confusing energy contracts can cost business consumers thousands of pounds, create a barrier to fair competition and open the door to unscrupulous brokers.
But knowledge is a weapon in the fight against baffling bills and mis-sold contracts with one campaigning CEO calling on bosses to plug into a raft of resources and expert advice.
“Energy literacy is absolutely critical for business consumers,” said Callum Thompson of Business Energy Claims.
“It’s not just about understanding your electricity bill or knowing what a kilowatt-hour is — it’s about being able to make informed, confident decisions in a market that can be complex and, at times, opaque.
“For businesses, where energy costs can significantly impact the bottom line, knowing how contracts work, what terms to look for, and how pricing is structured can be the difference between a healthy energy strategy and an expensive mistake.
“Simply put: the more you know, the more control you have.”
The latest findings from energy regulator Ofgem reveal that business consumers with low self-reported energy literacy are more likely to be struggling with payments.
And the same report showed more than one in 10 of businesses don’t understand the detail behind their monthly bills.
“Improving energy literacy doesn’t require a crash course in physics,” added Callum. “It’s a case of accessing a few key resources and having a bit of curiosity.
“Start by reading up on how energy markets work, understanding contract terms and getting familiar with the types of fees that can appear on a bill.
“Business Energy Claims offers educational materials, expert advice and support services that can help you get a clearer picture of your energy use and contracts.
“We’re also well-placed to identify red flags and steer you toward fair, transparent energy deals.
“Empowering yourself with this knowledge can help you protect your business and make smarter energy decisions long-term.”
For years unscrupulous brokers have been hiding behind perplexing jargon to inflate costs and hide fees — leaving many business consumers exposed in an unregulated market.
At the same time Ofgem reports that difficulty in comparing contracts can act as a barrier to switching.
Inconsistencies in the ways that suppliers present tariffs and other contract information can make it difficult to assess which contracts were more favourable on price than others.
And Callum warned: “A lack of energy literacy can open the door for less-than-transparent brokers or third-party intermediaries (TPIs) to bury hidden fees in contracts, inflate commissions or use overly complicated language to confuse clients.
“When a business doesn’t fully understand the pricing structure or contract terms, it’s much easier for unethical actors to take advantage.
“Transparency and fair practice do exist in the industry but, without basic knowledge, it’s hard for business consumers to spot the difference between a good deal and a loaded one.”
Callum and the BEC team are committed to clearing up the uncertainty around energy contracts and clawing back thousands of pounds owed to unsuspecting businesses.
And he insisted it’s never too late to reach out for help if you suspect your business has been the victim of mis-selling.
“First, don’t panic,” advised Callum. “You’re not alone. Many businesses have been in this situation and the key is to take action.
“Start by gathering your documentation: contracts, bills, any communication from your broker.
“Then, reach out to an independent energy consultant or a trusted organisation like the Business Energy Claims (BEC) or Energy Solicitors Ltd (ESL).
“They can help assess whether your contract was mis-sold and advise on potential next steps, including claims or renegotiations. The sooner you act, the better your chances of recourse.”