Mis-sold business energy contract? What counts and what you can do

What counts as mis-selling?

Ofgem's guidance on brokers doesn't define mis-selling, but the regulator, the government and Citizens Advice have all described what goes wrong. It can happen with any business electricity or gas contract, whether you agreed it through a broker or directly with a supplier.

Citizens Advice says you might want to complain to your broker if, for example, it:

• misled you about a contract it sold you
• wasn't clear about its fees
• charged you more than it said it would

Ofgem and the government have also raised concerns about brokers that:

• present contracts that aren't suitable for the business
• use sales practices that pressure businesses into quick decisions
• don't clearly disclose contract terms or how much commission they're paid
• give the impression they've searched the whole market when they haven't
• present themselves as energy suppliers (described in responses to the government's consultation)

In its 2024 review of the business energy market, Ofgem recorded that trade bodies had told it a number of businesses believe they were mis-sold contracts, or pressured into a bad deal, by brokers.

Remember that your energy contract is always with a supplier. A broker arranges it but doesn't supply your energy. Our guide to energy brokers explains how brokers work and how they're paid.

The rules suppliers and brokers must follow

Ofgem regulates energy suppliers, but it doesn't license brokers yet. These are the main rules that apply now.

Suppliers must treat you fairly. Since 1 July 2024, Ofgem's Standards of Conduct have applied to business customers of every size. For the activities they cover, such as bills, communications about your bills or contract, and switching, they require a supplier to behave fairly, honestly, transparently, appropriately and professionally, and to give you information that's complete, accurate and not misleading. They don't cover how much a supplier charges, except on deemed contracts.

Broker fees must be in your contract. Since 1 October 2022, microbusiness contracts have had to show any broker costs in the principal terms, as a total in pounds and pence for the length of the contract. For business contracts of any size signed on or after 1 October 2024, broker fees must appear in the principal terms too, shown as a cost per unit of energy. Ofgem says suppliers must also give you this information if you ask for it. There are two exceptions: fees you pay a broker directly don't have to appear in the supplier's terms, and a supplier's own sales team doesn't have to disclose commission.

For smaller businesses, suppliers can only use brokers in a dispute scheme. For microbusiness contracts since 1 December 2022, and for small business contracts since 19 December 2024, a supplier must make sure any broker it works with on those contracts belongs to a qualifying dispute settlement scheme. Ofgem doesn't approve these schemes itself.

Misleading marketing is banned. Ofgem says the Business Protection from Misleading Marketing Regulations 2008 stop brokers from misleading advertising. Ofgem can apply to the courts for an injunction to stop a breach. Ofgem says that where a breach may be a criminal offence, Trading Standards and the Competition and Markets Authority can enforce the regulations.

Broker regulation is planned. In October 2025, the government said it intends to regulate brokers directly, with Ofgem as the regulator, once parliamentary time allows. The King's Speech in May 2026 announced an Energy Independence Bill, which Ofgem says will set out powers for it to set rules for brokers, monitor the market and take action where harm occurs. Ofgem is also reviewing the broker market and plans to publish a final report on its findings by winter 2026/27. Until the new rules arrive, the routes below are the ones available.

Before you complain: gather your evidence

Citizens Advice says it's a good idea to complain in writing so you have a record, and, if a phone call or web chat doesn't solve the problem, to send an email or letter repeating what you said. Before you start, collect:

• Your contract and its principal terms, including any broker costs shown.
• Emails, letters and texts from the broker or supplier.
• Notes of any calls: the date and time, who you spoke to and what was said.
• Your account number and any complaint reference numbers.
• The broker's cost information. If it isn't in your terms, ask your supplier for it.

Ofgem also suggests checking with your broker which dispute scheme it belongs to before you raise a complaint. You can then check the scheme's own list of members.

Step 1: complain to the broker or supplier

If your complaint is about a broker, Ofgem says to contact the broker first and try to sort it out with them. If it's about the supplier, such as how it sold you the contract or what it's charging, complain to the supplier.

A supplier must try to resolve a complaint within 8 weeks. If it thinks nothing more can be done, it may send you a "deadlock" letter saying so. Ofgem itself doesn't investigate individual disputes.

Step 2: take a supplier complaint to the Energy Ombudsman

If your complaint about a supplier isn't resolved after 8 weeks, or you get a deadlock letter, you can take it to the Energy Ombudsman if your business qualifies. You don't need a lawyer.

Who qualifies:

• Microbusinesses: fewer than 10 employees and a turnover or balance sheet of no more than £2 million, or using no more than 100,000 kWh of electricity or 293,000 kWh of gas a year.
• Small businesses (since 19 December 2024): not a microbusiness, but using no more than 200,000 kWh of electricity or 500,000 kWh of gas a year, or with fewer than 50 employees and a turnover of no more than £6.5 million or a balance sheet of no more than £5 million.

Our guide to microbusiness energy rules explains these tests and the extra protections they bring.

Time limits. You need to go to the Ombudsman within 12 months of the deadlock letter, although it can accept a late complaint if there are exceptional reasons for the delay.

What it can do. If it finds the supplier hasn't acted fairly or reasonably, the Ombudsman can require an apology or explanation, a payment, or some other practical action that directly benefits you. Payments are capped. The Energy Ombudsman says its maximum award for all new non-domestic energy supply disputes has been £20,000 since 19 December 2024. The Ombudsman says it can't punish suppliers, tell them how to operate or issue fines.

Its decision. You have 14 days to tell the Ombudsman whether you accept its final decision. If you accept it, it binds you and the supplier, and the supplier has 28 days to carry out the remedy. If you don't accept it, it doesn't bind either of you, and you can take other action.

The government plans to cut the wait from 8 weeks to 6 for households and eligible businesses. It says this should happen as soon as reasonably possible, and no later than when the Energy Independence Bill becomes law, but we haven't seen a start date.

Complaining about a broker: the dispute schemes

Citizens Advice says that if your broker is paid by your supplier, it must be registered with one of three schemes: the Energy Ombudsman, the Utilities Intermediaries Association (UIA) or the Dispute Resolution Ombudsman (DRO). If your broker isn't registered with one, you won't be able to complain through a scheme.

A few points on each:

• Energy Ombudsman. It can only help if your broker is in its scheme. You can search its register of brokers on its website.
• UIA. Its scheme covers UIA members only, and the UIA says there's no charge to you. If you disagree with its decision, you have 21 days to ask the DRO to hear an appeal.
• DRO. It takes complaints from microbusiness customers, and from small business customers since 19 December 2024. It's free for you. If you accept its decision, the broker is bound by it, but you don't have to accept it.

Can you cancel a mis-sold contract?

Not easily. Ofgem says there's no cooling-off period once you agree a business energy contract, and that a contract agreed over the phone is binding.

The dispute schemes' published remedies are apologies, explanations, payments and other practical action. The Energy Ombudsman says practical action can include, for example, applying a credit, cancelling an account or applying a specified tariff. But none of the schemes promises to end a supply contract because it was mis-sold, and the broker schemes' remedies are against the broker, not your supplier. So don't stop paying or switch away without getting advice first, for example from Citizens Advice, because your contract may include charges for leaving early. Our guide to leaving a business energy contract early explains what your contract may allow.

Claims for undisclosed broker commission

You may see firms offering to claim back commission a broker was paid without telling you. Ofgem's guidance says:

• Beware of scams. Ofgem has been told that scammers are falsely claiming that Ofgem has made energy brokers repay commission.
• Ofgem can't make brokers repay. It doesn't regulate brokers and has no legal power to require them to repay commission.
• You may be able to go to court. Ofgem says you may be able to claim back undisclosed commission through litigation, and that you should get independent legal advice.

In its October 2025 response, the government recorded that consultation responses mentioned the increased role of claims management firms. It describes these as businesses that help clients recover money from energy disputes, and says they may work on a no-win-no-fee basis. Before you sign up with one, check its fees and what you'd owe if a claim succeeds or fails.

Where to get help

In England and Wales, Citizens Advice can give free advice to microbusinesses and small businesses on energy problems. Its consumer helpline is 0808 223 1133 (0808 223 1144 for Welsh-speaking advisers), and it also offers online chat. Suppliers must tell microbusiness and small business customers that Citizens Advice can help.

If your problem is with your contract terms rather than how you were sold it, our guide to business energy contracts explains the terms that decide what you pay and when you can leave.