Energy Broker Mis-Selling: The Free Service That Cost Businesses Millions

For years, UK businesses have been told that energy brokers are “free.” The reality is very different.

Instead of charging a visible fee, brokers have historically taken a percentage cut of every kilowatt-hour you buy. This margin is hidden inside your unit rate. The more you consume, the more they earn.

It became the default model: suppliers leaned on brokers (known as Third-Party Intermediaries, or TPIs) to bring in customers. Businesses assumed they were getting independent advice. In fact, they were funding opaque commissions without ever being told the full story.

Excessive profits at your expense

Because commissions weren’t disclosed, there was no cap. Some businesses only discovered years later that they’d paid 10–20% more than necessary. Across multi-site estates, the excess ran into six figures.

Courts have since confirmed that vague broker disclosures (“we may receive commission”) are not enough. If you didn’t give informed consent to the full amount, those commissions may be repayable.

Government consultation: regulation finally on the table

After years of pressure, the Department for Energy Security and Net Zero (DESNZ) launched a consultation on regulating TPIs in the business energy market.

Responses revealed overwhelming support for tougher rules, including:

  • Mandatory commission disclosure
  • A code of conduct for brokers
  • Access to independent redress

The government published a summary of consultation responses in July 2025 and confirmed it was “minded to directly regulate” brokers. But a full policy response has not yet been issued. Industry is still waiting to see what the regime will look like, when it will start, and how strongly it will be enforced.

For now, businesses remain exposed to the same risks that triggered the consultation in the first place.

Can companies claim against historic mis-selling?

Yes – and many already are.

Grounds for a claim include:

  • Hidden or undisclosed broker commission
  • Misrepresentation of contracts as “the best available”
  • Unfair auto-renewals or rollovers

The courts have backed claimants. In Expert Tooling & Automation v Engie, the Court of Appeal ruled that even “half-secret” commissions (where commission is mentioned but not quantified) could be repaid.

Specialist claims firms now offer “no win, no fee” routes for businesses, but they typically take 25–40% of any recovery. While useful for historic cases, this approach is retrospective and doesn’t prevent the problem repeating.

Why Energy Operations is the long-term fix

Chasing compensation only addresses the past. To take control of the future, businesses need a new model.

That model is Energy Operations.

  • Independent, fixed-fee – no commissions, no hidden incentives.
  • Active management – bills validated, tariffs optimised, usage monitored.
  • Compliance-ready – auditable data for SECR, ESOS, and board reporting.
  • Future-proof – integrated with renewables, storage, and half-hourly settlement.

Energy Operations is not another broker. It’s a business function – like finance or IT – built to manage energy strategically across cost, carbon, compliance, and risk.

The bottom line

Regulation of brokers is inevitable. Claims for mis-selling are mounting. The choice for businesses is simple:

  • Keep reacting – wait for regulators and lawyers to catch up.
  • Or take control – by building Energy Operations now.

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Because in today’s market, doing nothing is the costliest choice of all.

We analyse energy bills for businesses like yours every day and we find overspending, hidden fees, and misaligned contracts more often than not.


We’ll review your bill and follow up with a clear, jargon-free breakdown – no upsell, no lock-in, just facts.