Many UK businesses are unknowingly paying thousands more for their energy because of mis-sold contracts. From hidden fees to aggressive sales tactics, energy brokers and suppliers don’t always have your best interests at heart.
At Commercial Energy Solutions (CES), we’ve seen this time and again with new clients—businesses locked into expensive, long-term contracts they never fully understood or agreed to.
So, how can you protect your business? Let’s break down the red flags to watch for and what you can do if you suspect your energy contract was mis-sold.
Hidden Terms in Letters of Authority (LOA)
A Letter of Authority is meant to allow a broker to gather energy usage data on your behalf. However, some brokers use it as a backdoor to slip in their Terms & Conditions—including cancellation fees or long-term commitments—without providing a clear explanation.
Tip: Always read the LOA carefully and ask the broker to confirm in writing that it does not commit you to any charges or contracts.
No Multi-Supplier Comparisons
Good brokers should provide you with a transparent comparison of quotes from multiple suppliers. If you didn’t see clear price comparisons in writing, there’s a risk you were steering toward a single supplier offering the broker the highest commission.
Tip: Demand written evidence of at least three supplier offers before agreeing to any contract.
Long-Term Contracts During Price Peaks
Were you encouraged to lock into a 3- or 5-year contract when energy prices were unusually high? A responsible consultant would advise on short-term contracts during volatile markets, waiting for prices to stabilise.
Tip: Always ask why a specific contract term is being recommended and request market insights to support it.
Lack of Transparency in Fees
Cancellation fees, “non-live” charges, and other hidden costs often only come to light when you try to leave a contract. These fees are sometimes buried in the fine print or not disclosed at all during verbal agreements.
Tip: Never agree to a contract based solely on a phone conversation—get everything in writing.
Verbal Agreements Without Written Confirmation
Suppose your energy deal was arranged entirely over the phone without written confirmation or clear terms and conditions. In that case, you may not have been given enough information to make an informed decision.
Tip: Insist on receiving full terms, including costs, contract length, and exit fees, before signing or agreeing verbally.
If any of these red flags sound familiar, your business could be paying far more than necessary for its energy. But you’re not alone—and you don’t have to navigate this alone either.
At CES, we:
Review your current energy contracts for signs of mis-selling
Advise you on challenging unfair charges or exit fees
Help you secure fair, transparent contracts that save money
We’ve helped businesses like yours recover from mis-sold deals and take back control of their energy costs.
Case Study: How CES Helped a UK Business Challenge a Mis-Sold Energy Contract
A new CES client recently discovered their energy broker had locked them into a 3-year contract during a period of historically high energy prices. No written price comparisons were provided, and key Terms & Conditions—including a £2,000 cancellation charge—were hidden in the digital Letter of Authority.
Our Energy Consultant reviewed the situation and advised the client to challenge the cancellation fee. We highlighted:
As a result, the client successfully avoided paying the cancellation charge and is now working with CES to secure a fair, transparent energy contract.
Don’t wait until the next invoice shocks you. If you’re unsure about your energy contract, let us check it for free. Our expert consultants will:
Contact us for a contract review at [email protected] , or call us on 0203 157 1020 for a no-obligation chat with one of our energy consultants.
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