Understanding Problems with Your Business Energy Supplier or Broker
Small businesses often rely on energy suppliers and brokers to keep their operations running smoothly. However, problems can sometimes arise that disrupt your business and increase your costs. Understanding these issues – and knowing your rights – can help you take action quickly and confidently.
Common Issues with Energy Suppliers and Brokers
Many small businesses experience challenges such as:
Billing errors: These might include incorrect meter readings, estimated bills that don’t reflect your actual usage, or charges for services you haven’t received. Billing mistakes can lead to unexpected costs and cash flow problems.
Poor customer service: Delays in responding to queries, lack of clear communication, or difficulty resolving complaints can make it hard to get the help you need.
Contract disputes: Issues often arise around contract terms, automatic renewals, hidden fees, or being locked into a deal you didn’t fully understand. Misleading sales practices by some brokers or suppliers can also lead to confusion or unfair agreements.
These problems can have a real impact on your business, from wasted time and administrative headaches to higher energy bills and even disruptions to your operations.
Types of Energy Suppliers and Brokers
In the UK, small businesses may deal with:
Energy suppliers: These are licensed companies that provide electricity or gas directly to your premises. They are regulated by Ofgem and must follow rules designed to protect business customers.
Energy brokers or third-party intermediaries: These act as middlemen, helping you find deals or negotiate contracts with suppliers. While brokers can offer valuable advice, not all are regulated, and some may not always act in your best interest.
It’s important to check whether your broker is independent and transparent about their fees and commissions.
Why Knowing Your Rights Matters
As a small business, you are protected by certain regulations – though your rights may not be as extensive as those of domestic (household) customers. For example, Ofgem rules require suppliers to treat microbusinesses fairly, provide clear contract terms, and resolve complaints promptly. If you’re unsure about your status, a microbusiness is typically defined as a business that uses less than 100,000 kWh of electricity or less than 293,000 kWh of gas per year, or has fewer than 10 employees and an annual turnover or balance sheet of less than €2 million.
Being aware of your rights helps you:
Challenge unfair charges or contract terms
Demand better service or clearer information
Escalate complaints if your issue isn’t resolved
Support and Resources Available
If you encounter problems, you don’t have to face them alone. There are clear steps you can take to resolve disputes, from contacting your supplier or broker directly to seeking help from industry regulators or independent ombudsmen. Throughout this page, you’ll find practical guidance on how to raise a complaint, what evidence you’ll need, and where to turn if you need further support.
For more information about your legal rights and responsibilities, or to explore related topics, visit our page on energy issues for small businesses. This resource provides a broader overview of the rules and protections in place to help you manage your energy needs with confidence.
Common Problems with Business Energy Suppliers and Brokers
Common Problems with Business Energy Suppliers and Brokers
Running a small business comes with many responsibilities, and dealing with energy suppliers or brokers can sometimes add unexpected stress. Here are some of the most frequent issues businesses face, along with practical advice and information about your rights.
Billing Disputes
One of the most common problems is incorrect billing. This might include being charged for more energy than you’ve used, receiving estimated bills for long periods, or spotting unexplained fees on your invoice. According to Ofgem rules, suppliers must bill customers accurately and correct mistakes promptly. If you notice an error, contact your supplier immediately and ask for a breakdown of your charges. Keep records of all correspondence and ask for written confirmation of any agreements.
Poor Customer Service
Many businesses report slow responses to queries, difficulty getting through to the right department, or unresolved complaints. Good customer service is a basic expectation, but not all suppliers meet this standard. If your supplier is not responding or fails to resolve your problem, you have the right to escalate your complaint. Suppliers are required by law to have a clear complaints procedure, so ask for details if you’re not getting the help you need.
Contract Problems
Business energy contracts can be complex, with terms that aren’t always easy to understand. Common issues include:
Unclear Terms: Some contracts use complicated language or hide important details in the small print.
Early Termination Fees: Leaving a contract early can result in expensive penalties. Make sure you understand these before signing.
Automatic Rollovers: If you don’t give notice before your contract ends, it may automatically renew – sometimes at higher rates. Suppliers must give you advance notice of your contract’s end date and explain your options.
Always read your contract carefully and ask questions if anything is unclear. Under the Microbusiness Consumer Protections, suppliers must treat microbusiness customers fairly and provide clear contract information.
Issues with Brokers
Energy brokers can help you find a better deal, but problems can arise if they give misleading advice, fail to explain commission fees, or miscommunicate your requirements to suppliers. If you feel you’ve been misled, raise your concerns directly with the broker and keep a record of your discussions. Remember, brokers should always be transparent about their fees and any commission they receive from suppliers.
Supplier Insolvency
If your energy supplier goes out of business, it can be worrying – but there are protections in place. Ofgem will appoint a new supplier to take over your supply, and your energy won’t be cut off. You should take a meter reading and keep copies of recent bills. For detailed guidance on what happens next and how to protect your business, see what to do if your energy supplier goes bust.
Understanding your rights and knowing how to tackle these common problems can help you avoid unnecessary costs and disruption. If you’re facing any of these issues, don’t hesitate to take action – whether that’s raising a complaint, seeking clarification, or exploring your options with a new supplier or broker.
Your Rights as a Small Business Energy Customer
As a small business energy customer in the UK, you have important rights and protections under national regulations. Understanding these rights can help you resolve issues with your supplier or broker and ensure you receive fair treatment.
Your Rights Under UK Energy Regulations
The energy market for businesses is regulated by Ofgem, the UK’s energy regulator. Ofgem sets rules that suppliers and brokers must follow to protect businesses, especially smaller ones. These rules cover areas such as fair contract terms, accurate billing, clear communication, and complaint handling.
If you run a small business, you may benefit from extra protections as a “microbusiness.” Microbusinesses are given additional rights because they often have less bargaining power and fewer resources than larger companies.
How Microbusiness Status Affects Your Protections
Your rights depend on whether your business qualifies as a microbusiness. Microbusinesses are typically defined by criteria such as employee numbers, annual turnover, or energy usage. If you’re unsure about your status, you can check if your business is a microbusiness. Microbusinesses receive enhanced protections, including:
Clearer contract terms: Suppliers must provide key information upfront, such as contract length, prices, and notice periods.
Shorter notice periods: You can switch suppliers more easily, with shorter notice requirements.
Better billing practices: Suppliers must send final bills promptly and resolve billing disputes efficiently.
Improved complaint handling: You have access to free, independent dispute resolution if things go wrong.
What to Expect from Your Supplier or Broker
Suppliers and brokers must be transparent and fair in their dealings with you. This includes:
Providing clear and accurate information about prices, contract terms, and any fees or charges.
Treating you fairly – for example, not using high-pressure sales tactics or misleading information.
Making it easy to contact them and respond to your queries or complaints promptly.
Explaining your rights and options if you want to switch suppliers or end your contract.
If you use an energy broker, they should also act in your best interests, making sure you understand the deals on offer and any commission they receive.
Your Rights on Billing and Contract Terms
You have the right to:
Receive accurate bills based on actual meter readings, not just estimates.
Query or dispute your bill if you think there’s a mistake, and have your concerns investigated fairly.
Be notified of contract end dates and any changes to your terms, giving you time to shop around or negotiate.
Avoid unfair contract terms – for example, hidden fees or automatic rollover clauses that lock you into another contract without clear notice.
If you believe your supplier or broker has not met these obligations, you can raise a complaint and, if necessary, escalate it to an independent ombudsman for free resolution.
Understanding your rights as a small business energy customer is the first step towards resolving problems and ensuring you get the service you deserve. If you’re unsure about your status or the protections available to you, take a moment to check if your business is a microbusiness. This can make a significant difference to the support and rights you can expect.
Steps to Resolve Problems with Your Energy Supplier or Broker
Steps to Resolve Problems with Your Energy Supplier or Broker
If you’re facing issues with your business energy supplier or broker – such as unexpected bills, poor customer service, or confusing contract terms – it’s important to tackle the problem methodically. Here’s a step-by-step guide to help you resolve these issues effectively:
1. Identify and Document the Problem
Start by clearly identifying what’s gone wrong. Common issues include incorrect bills, sudden price increases, misleading sales tactics, or difficulties switching suppliers. Gather all relevant documents, such as contracts, emails, bills, and notes from phone conversations. Keeping detailed records will help you explain your case and provide evidence if the dispute escalates.
Tip: Write down dates, names of people you spoke to, and a summary of each conversation. Save copies of all correspondence.
2. Contact Your Supplier or Broker
Once you have all the details, contact your supplier or broker directly. Explain the issue clearly and provide any supporting evidence. Most problems can be resolved at this stage if you communicate calmly and stick to the facts.
If you’re unsure how to approach this, see our guide on complaining to your energy supplier about a problem for step-by-step instructions and tips on what to include in your complaint.
3. Follow the Complaints Process
Every energy supplier and broker is required to have a formal complaints procedure. Ask for a copy if it’s not available on their website. Make sure you follow each step, keep a record of your complaint, and note any reference numbers provided. Businesses are usually expected to respond within a set timeframe – often eight weeks.
If you’re not satisfied with the response, or if your complaint isn’t acknowledged, let them know you wish to escalate the matter. Remain polite but firm, and refer to your previous communications.
4. Escalate the Complaint
If your supplier or broker doesn’t resolve your complaint within eight weeks, or if you receive a ‘deadlock’ letter (confirming they can do no more), you can take the matter further. For most small businesses, this means approaching an independent ombudsman. Check whether your business is eligible, as some schemes have size or turnover limits.
5. The Role of Ombudsmen and Regulators
Ombudsmen act as independent dispute resolution bodies. If you qualify, they will review your complaint and the supplier’s response, then make a decision. Their service is free for eligible businesses, and their decisions are binding on the supplier or broker, but not on you – so you can still take legal action if you’re unhappy with the outcome.
Regulators such as Ofgem oversee the energy market and set rules for fair treatment. While they don’t resolve individual disputes, they can take action against suppliers or brokers who break the rules.
Key rules and protections:
Suppliers must treat customers fairly under Ofgem’s Standards of Conduct.
Misleading sales practices, hidden fees, or unfair contract terms may breach the Consumer Rights Act 2015 or the Business Protection from Misleading Marketing Regulations 2008.
Summary
Resolving problems with your business energy supplier or broker involves clear communication, following the official complaints process, and escalating your case if needed. Keeping thorough records and understanding your rights will help you get a fair outcome. If you need help getting started, read more about complaining to your energy supplier about a problem.
What to Do if You Need to Switch Energy Suppliers
If you’re facing ongoing issues with your business energy supplier – such as repeated billing errors, poor customer service, or contract disputes – switching to a new supplier can often be a practical solution. Moving to a different energy provider may help you secure better service, more competitive rates, or clearer contract terms.
When Should You Consider Switching?
Switching suppliers is worth considering if:
Your current supplier isn’t resolving complaints or persistent problems.
You’re unhappy with the level of customer service or billing practices.
You’ve found a better deal elsewhere that suits your business needs.
Your contract is due to end soon, or you’re on a variable or deemed rate.
Before making a decision, check your current contract for any exit clauses or notice periods. Many business energy contracts have fixed terms, and leaving early can sometimes result in penalty fees. Review your agreement carefully to understand any costs or obligations involved.
How to Switch Suppliers Safely
Switching business energy suppliers is straightforward, but it’s important to follow the correct steps to avoid disruption:
Check Your Contract: Confirm your contract’s end date and any termination conditions. Some contracts require you to give notice if you plan to leave.
Compare Offers: Shop around and compare quotes from different suppliers to find the best deal for your business.
Notify Your Current Supplier: If you’re free to switch, inform your current supplier as required by your contract.
Arrange the Switch: Your new supplier will usually handle the process, including contacting your old supplier and arranging the transfer date.
Take Meter Readings: On the day of the switch, take a meter reading to ensure your final bill is accurate.
By following these steps, you can switch providers without any interruption to your business’s energy supply. The process is regulated to ensure a smooth transition, and your new supplier should keep you informed throughout.
For more detailed guidance on the process, you can read about switching your business to a new energy supplier.
What to Consider Before Switching
Termination Fees: Check if your current contract charges an exit fee for leaving early.
Notice Periods: Some contracts require written notice before you switch.
Outstanding Issues: Make sure any disputes or unpaid bills are resolved, as these can delay the switch.
New Contract Terms: Review the terms and conditions of your new supplier, including prices, contract length, and any additional charges.
Benefits of Switching
Switching to a new supplier can offer several advantages:
Better Pricing: You may be able to reduce your business’s energy costs by securing a lower rate.
Improved Service: A new supplier might offer better customer support or more transparent billing.
Tailored Contracts: You can choose a contract that better fits your business’s size and usage patterns.
Taking the time to review your options and switch suppliers can help you avoid ongoing problems and ensure your business gets the service and value it deserves.
Managing Your Energy Supply When Moving Premises
When your business is moving to new premises, it’s important to manage your energy supply carefully to avoid any disruption, unexpected costs, or contract issues. Here’s what you need to know to keep your energy running smoothly during a move.
How Moving Premises Affects Your Energy Supply and Contracts
Relocating your business can have a direct impact on your energy supply and the terms of your current contract. Most business energy contracts are tied to a specific address. This means your existing contract usually can’t be simply transferred to your new premises. If you move without notifying your supplier, you may be held liable for energy used at your old address or face early termination fees.
Some suppliers may offer to transfer your contract to your new premises, but this is not always guaranteed. The rates and terms could also change, especially if your new location is in a different region or has different energy requirements.
Steps to Ensure Continuous Energy Service During a Move
To avoid any interruption to your energy supply, follow these key steps:
Contact Your Supplier or Broker Early
As soon as you know your moving date, inform your current energy supplier or broker. They will guide you on the process and what’s required for a smooth transition.Provide Final Meter Readings
On your last day at the old premises, take a final meter reading and send it to your supplier. This ensures you are only billed for the energy you have actually used.Set Up Energy at Your New Premises
Arrange for a new contract at your new address in advance. If you don’t, you may be placed on a ‘deemed contract’ with higher rates until you agree to new terms. Make sure to take an opening meter reading at your new premises on arrival.Update Your Details
Give your supplier your new business address and contact details. This helps prevent any confusion or missed bills.
Notifying Your Supplier or Broker
Notifying your energy supplier or broker about your move is essential. Most contracts require you to give a certain amount of notice – often 30 days – before leaving your current premises. Failing to do so can result in penalties or being charged for energy you are no longer using. Always check the notice period in your contract and provide written confirmation of your moving date.
Avoiding Unexpected Bills and Contract Issues
To avoid surprises:
Check for Exit Fees: Some contracts include early termination charges if you leave before the end of the agreed term. Ask your supplier if these apply.
Confirm Final Billing: Make sure your supplier has your final meter reading and forwarding address so your last bill is accurate.
Cancel Direct Debits if Needed: Once your final bill is settled, cancel any direct debits linked to your old premises to prevent accidental payments.
Keep Records: Keep copies of all correspondence, meter readings, and bills related to your move.
Further Advice
Managing your energy supply during a business move can be complex, but taking these steps will help you avoid common pitfalls. For more detailed guidance on each stage of the process, see our page on dealing with your energy supply when you move business premises. This resource covers everything from legal obligations to practical tips for a smooth transition.
Handling Your Business Energy Bills and Saving Energy
Understanding your business energy bills is essential for keeping costs under control and avoiding unexpected charges. Energy bills can sometimes be confusing, but taking the time to check them carefully can help you spot mistakes early and resolve issues before they become bigger problems.
Understanding Your Energy Bills and Spotting Errors
Your energy bill should clearly show how much energy your business has used, the rates you are being charged, any standing charges, and the total amount due. Look out for the following common issues:
Estimated readings: If your bill is based on estimated rather than actual meter readings, you could end up paying too much or too little. Always provide regular meter readings to your supplier.
Incorrect tariffs: Double-check that you are being charged the agreed tariff. Mistakes can happen if your contract details aren’t updated correctly.
Unexpected fees or charges: Review your bill for any new or unexplained charges, such as late payment fees or administration costs.
Duplicate billing: Ensure you are not being billed twice for the same period or service.
If you spot an error, contact your supplier or broker immediately with evidence, such as previous bills or contract details. Keeping records of all correspondence will help if you need to escalate your complaint.
Managing and Paying Your Energy Bills Effectively
Paying your energy bills on time is crucial to avoid late payment charges and potential disruptions to your supply. Here are some practical tips:
Set up direct debits: This can help ensure payments are made on time and may even qualify you for discounts.
Monitor usage regularly: Track your business’s energy consumption to avoid surprises and budget more accurately.
Negotiate payment plans: If cash flow is tight, ask your supplier about payment plans or extensions to help spread the cost.
Review your bills regularly: Regular reviews can help you spot trends or sudden increases in usage that may signal a problem.
For more detailed guidance, you can read about dealing with your business energy bills.
Practical Ways to Save Energy and Reduce Costs
Taking steps to save energy not only lowers your bills but also demonstrates your business’s commitment to sustainability. Simple measures can make a significant difference, such as:
Switching off equipment and lights when not in use.
Upgrading to energy-efficient lighting and appliances.
Improving insulation and draught-proofing your premises.
Encouraging staff to adopt energy-saving habits.
For practical advice on the simplest way to save energy, explore tips designed specifically for small businesses.
How Energy-Saving Measures Can Help with Supplier Issues
By reducing your energy usage, you can limit the impact of billing errors or disputes, as lower consumption means smaller bills and less risk of being overcharged. Additionally, energy-saving measures can strengthen your position if you need to negotiate with your supplier or broker, as you’ll have a clearer understanding of your usage patterns and costs.
Remember, staying proactive with your bills and energy usage puts you in the best position to resolve problems quickly and avoid future issues. If you encounter persistent difficulties with your supplier or broker, knowing your rights and keeping detailed records will help you seek further support if needed.
