What are the red flags in a business energy deal?
Watch for costs or deadlines you cannot verify, pressure to agree before you have the full terms, and a supplier or broker who will not explain the total price in writing.
Check the price and who is paid
Broker commission hidden in the unit rate
A broker may receive supplier commission or add an uplift to the p/kWh rate. If the amount or payment method is not clear, you cannot fairly compare the recommendation with a direct quote.
Protect yourself: Ask who pays the broker, how much, whether the commission recurs, and what your price would be without it. Get the answer and full-rate breakdown in writing before you sign.
A “free” switch with an unclear cost
“Free” may mean no separate invoice, while commission is paid another way or included in the tariff. It may also refer only to the switching service, not the energy contract.
Protect yourself: Ask whether the broker receives a fee or supplier commission and compare unit rate, standing charge and other costs against a direct supplier offer for the same site, usage and term.
A headline price that leaves charges out
A low unit rate may not include standing or capacity charges, VAT, CCL, meter costs or charges that pass through. Different prices may also apply at different times of day.
Protect yourself: Request a written total-cost calculation with every charge, the VAT/CCL basis, annual usage assumptions and any variable costs identified.
Unexplained deemed or out-of-contract rates
If no agreed deal is active, the site may be supplied under a deemed or out-of-contract rate. It is easy to overlook after a move, contract expiry, or a failed switch.
Protect yourself: Contact the supplier promptly, ask which contract and rates currently apply, record the start date, and request a suitable written quote. Do not assume a new contract can be backdated.
Check deadlines and what you agree to
Rollover or auto-renewal wording
Rollover usually means that a new fixed term takes effect when the current term ends; an evergreen contract has no fixed end date. These have different ending rules. Under current Ofgem guidance, the 30-day maximum notice period is for eligible microbusiness evergreen contracts only. Eligible microbusinesses generally do not have to give termination notice just to end or switch at the end of the initial fixed term.
Protect yourself: Ask whether your agreement is fixed term, rolled over or evergreen, and request its end date and renewal terms in writing. Check the contract and applicable rules before relying on an automatic renewal or notice deadline; do not confuse leaving at term end with an early exit.
A misunderstood notice deadline
Notice requirements differ between evergreen and fixed-term contracts and by business eligibility. For an eligible microbusiness, the current 30-day maximum termination-notice rule applies to evergreen contracts only. It is not the notice rule for ending an initial fixed term, nor a general right to exit that term early.
Protect yourself: Identify the contract type first. If an eligible microbusiness evergreen contract requires notice, use the written method and keep proof of receipt. For a fixed-term contract, verify its end date and current Ofgem protections; for early exit or other business sizes, check the signed terms and any fee.
A verbal “yes” before you see the contract
A recorded call or spoken acceptance may form a contract. Ofgem warns that, unlike some consumer purchases, business energy contracts do not automatically come with a general cooling-off period. A salesperson's summary may not include fees or the full term.
Protect yourself: Say you are not agreeing until you have the complete written terms. Verify the site, supplier, start date, duration, price, exit conditions and broker authority before accepting.
Cold-call pressure or urgency
Claims that a deal expires in minutes, that a caller is “from your supplier” without clear verification, or requests for account details under pressure should give you pause.
Protect yourself: End the call, contact your supplier using a number from a bill or its official site, and verify the caller and offer independently. Never share online banking or password details to receive a quote.
Exit fees that are hard to calculate
An early-exit amount may apply if you end a fixed contract early or accept a second deal that overlaps. “No exit fee” also needs to be confirmed in the actual contract.
Protect yourself: Ask for the clause and a worked example for your circumstances. Get the supplier's written final calculation before relying on a transfer or agreeing to an overlapping contract.
Check bills and disputed charges
Late back-billing
A large catch-up bill can arrive after estimates or billing problems. Rules generally restrict microbusiness suppliers from billing energy more than 12 months old in specified circumstances, but exceptions apply, including cases where the customer obstructed access or failed to provide required information.
Protect yourself: Send regular meter readings, keep dated bills and correspondence, and challenge old charges promptly in writing. Ask the supplier to show the billing dates, readings and rule it relied on; escalate if the response is unsatisfactory.
An invoice that does not match the offer
The bill's meter, consumption period, unit rates, standing days, commission or tax treatment may differ from the paperwork or what you expected.
Protect yourself: Compare the bill with the accepted contract and meter readings line by line. Mark disputed items, keep paying any undisputed amount where appropriate, and raise a dated written complaint with the supplier.
A broker complaint with no clear route
Suppliers and brokers are separate businesses and can belong to different complaint schemes. A supplier may not resolve a broker's sales or commission dispute.
Protect yourself: Ask the broker which independent redress scheme covers it and how to complain. Ofgem says microbusiness and small-business broker disputes can fall under a qualifying dispute settlement scheme; confirm your eligibility and scheme details directly.
Take a step back before agreeing
Get the full offer, pause, and compare the same contract length, expected use and charge set with at least one independent quote. If you suspect a misleading sale, preserve the call time, messages, emails, quote and contract. Read our buying checklist and your rights before you sign.
Use the estimator to put your usage and a quote into context. It does not find live tariffs or replace a supplier contract.
Frequently asked questions
Can a business energy contract be agreed over the phone?
Potentially. Ofgem says business energy customers do not automatically have a general cooling-off period, even when they agree by phone. Do not treat a call as harmless: ask for the terms in writing and do not accept until you are ready.
Does “free switching” mean the broker earns nothing?
Not necessarily. A broker may receive commission from a supplier or include an uplift in the tariff rather than charging a visible separate fee. Ask for the payment method and amount in writing.
Do microbusinesses have to give 30 days’ notice to leave?
No. The current maximum 30-day termination-notice period is for eligible microbusiness evergreen contracts only. Under current rules, microbusinesses generally do not have to give termination notice simply to end or switch at the end of an initial fixed-term contract; early exit is separate.
Can a supplier back-bill a microbusiness for more than 12 months?
Ofgem rules generally protect eligible microbusinesses from being billed for more than 12 months of previously unbilled energy in specified circumstances. Exceptions may apply, so ask the supplier to explain the dates and basis of a disputed bill.
What should I keep if I want to complain?
Keep the written quote and contract, bills, meter readings, call dates, emails, messages, notices sent and delivery confirmations. Complain in writing to the company involved and check the relevant independent redress route.