Written by George Sweeney Reviewed by Craig Watson
Sources
29 July 2026
First Published
Over the last few years, the UK commercial energy market has seen a wave of businesses discovering undisclosed fees and inflated rates buried in their energy agreements. If you think you were mis-sold a business energy contract, it’s important to understand your rights and the next steps to take.
Here, we explain what’s considered to be missold business energy, who is eligible to claim, the kind of compensation you can expect if you were mis-sold gas or electricity, and how to start the claims process so you can move on with your business’s finances.
What is a mis-sold business energy contract?
This is when an energy broker or supplier provides misleading, incomplete, or false information to secure your signature on a commercial utility agreement for gas or electricity supply.
The most common issue is the hidden commission energy claim. This is where an energy broker adds a secret commission directly into your unit rate, inflating your overall bill without explicitly telling you how much they’re earning. To combat this energy mis-selling, Ofgem implemented new regulations in October 2024.
All UK energy suppliers are now required to disclose third-party intermediary costs to non-domestic customers in a standardised format. However, if you signed your contract before these changes, or if your broker failed to act in your best interests, you could be sitting in a mis-sold business energy contract.
Who can make a business energy claim?
Any UK business, charity, or organisation that used an energy broker or third-party intermediary to secure their utility contract could have grounds for a business energy claim.
You may be eligible to make a business energy claim if you experienced any of the following:
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Undisclosed commissions: You were not told exactly how much commission the broker was receiving in pounds and pence, or the broker hid the commission inside the supplier's base unit rate.
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Misleading recommendations: Your broker failed to find the best business energy deal for your company and instead recommended the supplier that paid them the highest commission.
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Misrepresented terms: The broker provided false information about the length, costs, or type of contract you were signing up for, or disguised a legally binding verbal agreement as a simple quotation.
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Pressure selling: You were rushed or pressured into signing an energy procurement agreement without being given the time to fully review the terms and conditions.
Even if your contract has already ended, you may still be able to pursue commercial energy claims for historically mis-sold business energy.
What kind of business energy compensation can you expect?
Average compensation can be around £25,000, but the range can be anywhere from £2,000 to £2 million. Business energy compensation varies widely depending on your business size, energy usage, and how long the contract has been running.
For some small or micro-businesses, the result can be a few thousand pounds, while larger, high-consuming companies have successfully recovered compensation upwards of a million pounds.
Also, proving you were mis-sold may allow you to exit an unfair contract without paying standard early termination fees, freeing you to find a cheaper, fairer deal. With successful mis-sold energy claims, compensation typically involves a refund of some or all of the money that you paid toward your business energy.
How to make a commercial energy claim
You can pursue business energy claims yourself or with expert support by submitting a formal complaint directly to your supplier or broker.
Documents you will need for a claim
To prove your case, you will need a solid paper trail; make sure you have to hand:
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A copy of your signed energy contract or terms and conditions.
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At least 3 to 6 recent energy bills or invoices (to help calculate the amount you were overcharged).
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The Letter of Authority (LOA) you signed for the energy broker.
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Any correspondence (emails, letters, brochures, or phone notes) provided before you agreed to the deal.
What to include in a business energy claim letter
When writing to your supplier or broker, you must clearly state your case:
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Include your business energy account number and any case reference numbers from complaints you’ve raised.
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Clearly explain why you believe the contract was mis-sold (like failure to disclose commission).
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Formally request that they reveal exactly how much commission was added to your account.
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State what you want them to do to resolve the issue, such as refunding the overcharges or letting you exit the contract.
If your supplier or broker fails to resolve your complaint within 8 weeks, or if they send you a "deadlock letter" refusing to help, you have the right to escalate your dispute to the Energy Ombudsman for a free and independent review (provided it’s within 12 months of your initial complaint).
Get independent energy advice
How a business energy advisor can help with energy mis-selling
Pursuing a mis-sold energy contract can be a time-consuming legal process, especially when facing the dedicated legal teams of major energy companies. A specialist advisor can handle the heavy lifting for you; here’s how they can help:
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Establish whether you have a case: A skilled energy advisor will review your current contracts, historical bills, and broker communications during a free initial assessment to quickly verify whether hidden commissions were applied.
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Guide you through the claim process: They handle the formal complaints process, craft the necessary letters and legal arguments, and can escalate the dispute effectively to ensure you recover any overpaid funds.
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Find a more suitable supplier: Once the dispute is resolved and you are freed from your mis-sold gas and electric contract, an independent broker can transparently compare the market to help you switch energy provider to one that matches your operational needs with no hidden fees.
Get independent business energy claim advice today
Dealing with a mis-sold business energy contract can be incredibly stressful, but taking action can allow you to recover compensation for your company.
Here’s why businesses across the UK use Money Helpdesk when navigating their utility issues:
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Access to experienced commercial energy advisors and claims specialists
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Complete transparency regarding tariffs and fees
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Expert guidance to help you switch energy suppliers
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Free initial chat with no obligation to proceed further
If you suspect you have been mis-sold business energy or want to explore more transparent commercial energy options, you can get started here.
FAQs
Energy brokers act as agents for your business, and failing to disclose the commission they earn from a supplier is considered a breach of trust. If the broker inflated your prices to make a bigger commission without telling you, you are legally entitled to demand compensation for the hidden costs.
Yes. Even if your contract has ended and you’ve moved to a different provider, you can still submit a claim for past energy mis-selling. You just need to ensure you have sufficient evidence, such as copies of the old energy contracts and historical invoices, to back up your case.
In October 2024, Ofgem introduced a new regulatory framework to put an end to the era of hidden commissions. All UK energy suppliers are now mandated to disclose third-party intermediary costs and broker fees to non-domestic customers using a clear, standardised format.
Yes. From December 2024, the Energy Ombudsman expanded its free dispute resolution service to include small businesses (those with fewer than 50 employees and a specific turnover/consumption limit).
If you complain to your supplier or broker and they do not resolve the issue within 8 weeks, you can escalate the matter to the Ombudsman.