Many UK businesses have been paying more for gas and electricity than they needed to. The reason often lies with energy brokers who arranged the contracts. In a large number of cases, these brokers earned substantial commissions that were never clearly disclosed to the business. Those commissions were frequently built into the unit rates, meaning every kilowatt-hour used carried an extra cost that the customer never agreed to see. A business energy claim is the process of recovering that overpayment.
How Undisclosed Commissions Worked
Energy brokers sit between businesses and suppliers. They compare deals, handle paperwork and often present themselves as offering a free service. In reality, many received payment from the supplier in the form of a commission. When that commission was not properly explained — or was not mentioned at all — the business had no way of knowing the true cost of the arrangement.
The commission was typically added as an uplift to the unit price. Over a multi-year fixed contract the extra cost could become significant. Longer contracts and higher usage simply increased the total amount paid to the broker. Some businesses were also locked into automatic renewals or roll-overs that extended the inflated rates without a fresh comparison of the market.
Recent legal developments have strengthened the position of businesses in these situations. Courts have examined both fully secret commissions (where the customer was told nothing) and half-secret commissions (where the customer knew a commission existed but not its size or structure). The principle is that a business is entitled to make an informed decision. Without clear disclosure of material facts, the arrangement can be open to challenge.
Who May Have a Valid Claim?
You may be able to pursue a business energy claim if:
- An energy broker or third-party intermediary arranged your gas or electricity contract
- You were not told that commission would be paid, or the amount and structure of that commission were not explained
- The commission increased the price you paid
- Your contract ran for several years or was renewed without a transparent market review
Claims can relate to both current and past contracts. Even if the broker has since stopped trading, it may still be possible to pursue the energy supplier in certain circumstances. The business itself usually needs to still be trading, although insolvency practitioners may sometimes pursue claims on behalf of creditors.
Documentation that helps includes energy bills, the original contract, any letter of authority given to the broker, and correspondence about the deal. Specialists can often obtain additional records if some paperwork is missing.
What Compensation Can Cover
A successful claim typically seeks to recover the undisclosed commission that was embedded in the rates. The amount varies widely according to the size of the business, the length of the contract, energy usage and the level of commission applied. Some claims run into several thousand pounds; larger multi-site or high-usage businesses have recovered substantially more.
Compensation is not automatic. Each case depends on the specific facts, the quality of disclosure (or lack of it), and the legal arguments available. This is why a careful review of the paperwork is essential before any formal claim is submitted.
The Practical Steps Involved
- Review your contracts and bills
Look for any mention of broker fees, commission or third-party charges. Note the dates, suppliers and any automatic renewal clauses. - Gather supporting documents
Collect as many bills and contract documents as possible. A single recent bill is often enough to start an assessment. - Seek a specialist review
Firms that handle business energy claims can examine the paperwork, identify whether commission appears to have been undisclosed, and estimate potential recovery. Many offer this initial review free of charge and on a no-win, no-fee basis. - Submit a formal claim if appropriate
Depending on the circumstances, the claim may be directed at the broker, the supplier, or both. The process can involve formal letters, negotiation and, if necessary, legal proceedings. - Monitor progress and keep records
Keep copies of everything sent and received. Clear communication helps avoid delays.
Points to Keep in Mind
Not every broker arrangement was unfair. Some brokers provided transparent service and disclosed their fees properly. The problem arises where material information was withheld or presented in a way that prevented the business from giving informed consent.
Time is also relevant. While claims can often cover several years of past contracts, evidence becomes harder to obtain the further back you go. Acting while records are still available improves the chances of a thorough assessment.
Businesses should also be cautious about unsolicited approaches. A proper claim begins with a careful review of your own documents rather than pressure to sign up immediately.
Why This Matters for Businesses
Energy is a major overhead for many companies. Paying hidden commissions for years can represent a meaningful drain on cash flow. Recovering those sums can provide a welcome cash injection and encourage better scrutiny of future contracts. Since October 2024, suppliers have faced clearer rules about disclosing third-party intermediary fees, which should improve transparency going forward. However, many historical contracts remain open to challenge.
A business energy claim is not a quick or guaranteed payout. It is a structured process of examining whether a broker’s remuneration was properly disclosed and, if not, seeking recovery of the resulting overcharge. For businesses that used brokers and never saw a clear breakdown of fees, it is worth having the paperwork reviewed by someone who understands these claims.
If your business arranged energy through a broker and you are unsure whether commission was fully explained, a free assessment of your contracts is a sensible first step. The outcome will depend on the specific facts of your case, but understanding your position is the only way to know whether recovery is possible.
