Business energy broker mis-selling: how to spot it and what to do

Mis-selling happens when a broker (or a supplier's sales agent) gets you into a contract by giving you false, misleading or incomplete information. Because there is no cooling-off period on business energy contracts and a verbal agreement can be binding, finding out afterwards can be expensive. This guide covers how to recognise it, what to collect, who to complain to and what outcome is realistic.

What counts as mis-selling?

There is no single legal definition in energy, but these are the patterns that complaints usually fall into:

• Pretending to be your supplier. A caller says they are "from your energy company" or "from Ofgem" and that your contract is ending or being cancelled.
• Wrong price or term. The rates, contract length or termination fees in the paperwork differ from what you were told.
• Hidden or understated fees. The broker's commission was not clear, or was not shown in the Principal Terms as a total in pounds and pence. Broker costs that are added into your supplier bill have to be disclosed there.
• Inflated usage estimates. Commission is based on estimated consumption, so an overstated estimate raises the broker's payout.
• "Only option" selling. You were told only one or two suppliers were available, when the broker could have approached many.
• Signing without knowing. A letter of authority or verbal "yes" was treated as agreement to a contract.
• Cold calls at the wrong moment. Callers who push you to agree before your current contract is checked.

Not every disappointing deal is mis-selling. A rate that looked fair and then became poor value because wholesale prices fell is a market risk, not a sales fault. What matters is whether you were given false or misleading information, or whether required information was left out.

Step 1: Stop and collect evidence

Before you contact anyone, gather:

1. The contract and Principal Terms, plus any renewal letter or welcome pack from the supplier.
2. The quote or comparison the broker sent you, and any emails or texts.
3. Notes of calls: date, time, who spoke to you and what was said. If the call was recorded, ask for a copy in writing.
4. Any letter of authority you signed (see is it safe to sign a letter of authority).
5. Your bills, so you can show the difference between what you were promised and what you pay.
6. The broker's contact details and which dispute scheme it says it belongs to.

Ask the supplier for the broker costs recorded on your contract. Ofgem rules mean suppliers must provide broker cost information on request. Our guide on how to find out what your broker is paid shows how.

Step 2: Complain to the broker in writing

Citizens Advice's guidance for small businesses is to raise the issue straight away, say what you want done, and follow up any call with an email so there is a written record. Quote your account number and any reference numbers.

State clearly:

• what you were told, and when;
• what the contract actually says;
• the financial effect, with a figure if you can work it out;
• what outcome you want, such as release from the contract, a refund of excess commission or the contract repriced.

Step 3: Check which scheme the broker belongs to

Suppliers are only allowed to use brokers who are members of a qualifying dispute scheme when selling to microbusinesses and small businesses. Citizens Advice names three schemes: the Energy Ombudsman, the Utilities Intermediaries Association (UIA) and the Dispute Resolution Ombudsman. The rules differ slightly:

Scheme	When you can escalate
Energy Ombudsman	After 8 weeks of using the broker's complaints process, or straight away with a deadlock letter; generally within 12 months
UIA	After the broker's process, if 15 working days have passed or you are unhappy with the response
Dispute Resolution Ombudsman	8-week and deadlock-letter rules; 1 year from a deadlock letter or settlement offer

Citizens Advice's page says that if your broker is not registered with a scheme where it should be, you cannot complain to one. In that case tell the supplier, which may have broken its own licence rules by using the broker, and take advice.

Step 4: Escalate

If the broker's reply does not resolve things, take the case to its scheme. The Energy Ombudsman's broker terms of reference cover mis-selling and account management. If it finds a contract was mis-sold, it can direct the broker to cover your financial loss and fix service problems within a set timeframe. Under its broker terms of reference, an award is capped at £10,000 (including any VAT) per complaint. The higher £20,000 limit that has applied since 19 December 2024 covers disputes with energy suppliers, not brokers.

Also keep in mind:

• The Ombudsman cannot take complaints about the supplier's service after the sale as part of a broker complaint. Raise supplier issues with the supplier separately; see business energy complaints and the Ombudsman.
• Free guidance is available from Citizens Advice's consumer service.
• Ofgem does not investigate individual broker complaints and has no power to force brokers to repay commission.

Beware "commission refund" scams

Ofgem has warned that scammers phone businesses claiming Ofgem has made brokers repay hidden commissions, and ask for fees or bank details up front. If anyone says this, hang up and contact Citizens Advice or the Energy Ombudsman directly. Genuine claims go through the broker's own dispute scheme or, for legal claims, a solicitor, and you should take independent legal advice before paying a claims firm anything.

Worked example

A café owner is told a three-year fixed deal costs "26p per kWh all in" and the broker is "free". The Principal Terms later show a broker cost of £1,350 over the term.

• If the owner's annual use is 30,000 kWh, £1,350 / 3 years = £450 a year, or 450 / 30,000 = 1.5p per kWh of the rate.
• If the unit rate was meant to include that and the owner was told otherwise, the gap between "free" and £1,350 is the loss to claim.

The owner emails the broker with the quote and call notes, asks for the cost to be refunded, waits for a final reply, and goes to the broker's dispute scheme if there is none. The numbers here are illustrative; check your own paperwork.

Next steps

• Collect your evidence this week; memories fade and contracts are time-limited.
• Write to the broker. See what to do if a broker mis-sold my contract for a quick checklist.
• If you are still within a fixed term, read how to exit a business energy contract early.
• Learn how broker regulation works so you know what to expect.

This is general information, not legal advice.