What Are Mis-Sold Business Energy Claims?
Mis-sold energy claims arise wherever a business entered into an energy contract on the basis of inaccurate, incomplete, or misleading information provided by a broker, consultant, or supplier. Business energy mis-selling is widespread: an estimated 85% of broker-arranged contracts reviewed by specialists show evidence of undisclosed commissions or other mis-selling practices.
Common forms of energy mis-selling affecting UK businesses include:
- False "best rate" claims: Being told a contract was the best available rate when the broker had financial incentives to direct you toward a particular supplier.
- Unsuitable contract lengths: Being placed on a 4 or 5-year contract without proper assessment of your business's likely growth, relocation, or usage changes.
- Hidden exit penalties: Not being clearly informed about the significant termination charges that would apply if you needed to leave the contract early.
- Misleading unit rate comparisons: Comparisons that excluded standing charges or were made against unrepresentative benchmarks.
- Pressure to sign quickly: Tactics that created artificial urgency and prevented you from taking proper advice or comparing alternatives.
- Automatic rollover contracts: Contracts that renewed automatically at significantly higher rates, with notification clauses you weren't clearly informed about.
- Undisclosed commission: The broker earning a payment from the supplier without your knowledge - which is simultaneously a breach of their duty of disclosure.
Note: Mis-selling claims can overlap with, or be separate from, undisclosed commission claims. If you were given misleading information at the point of sale, you may have a standalone mis-selling claim even if the commission was technically disclosed.
What Can You Claim?
Depending on the nature of the mis-selling and its impact on your business, remedies may include:
- Return of undisclosed commissions paid throughout the contract
- Refund of excess charges compared to a properly competitive market rate
- Recovery of early termination fees where mis-selling influenced contract choice
- Compensation for the difference between the rate you paid and a fair market rate
- Interest on amounts recovered