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Compliance & Regulation

Energy Mediation UK: Billing Disputes & Contract Challenges

Johnny Arthur · · Updated 7 July 2026

Hands of business people discussing a contract at a meeting table.

Energy Mediation for UK Businesses: What It Is, When You Need It, and How Telnergy Can Help

Quick Answer: Energy mediation is a structured process that helps UK businesses resolve disputes with their energy supplier or broker — covering billing errors, mis-sold contracts, auto-renewals, LOA abuse, and unlawful exit fees. Telnergy is one of the only independent energy consultancies in the UK to offer a dedicated mediation service. We act on your behalf, with any fee agreed upfront before we start.

The Problem: UK Businesses Are Losing Money to Energy Disputes They Don’t Know How to Win

Energy disputes are more common than most business owners realise. A 2023 survey by Citizens Advice found that thousands of small business customers are billed incorrectly or placed onto unfavourable contracts each year, often without their knowledge or consent.1 Unlike domestic customers, businesses have historically had fewer formal protections — and most simply absorb the loss rather than pursue a claim.

That is changing. In December 2024, the Dispute Resolution Ombudsman (formerly the Energy Ombudsman) extended its remit to cover businesses with fewer than 50 employees, meaning the majority of UK SMEs now have access to formal, binding dispute resolution for the first time.2 In October 2024, Ofgem introduced new disclosure rules requiring Third Party Intermediaries (TPIs) — energy brokers and consultants — to declare all commissions they receive from suppliers.3

And in the background, Barings Law launched a class action lawsuit in 2024 against energy suppliers and brokers over alleged mis-selling of business energy contracts — a case that drew national attention to just how widespread unfair practices had become.4

If your business has been placed on the wrong contract, charged exit fees you did not agree to, had a contract auto-renewed without your consent, or simply received a bill that does not reflect your actual consumption, you have options. And Telnergy can help you pursue them.

What Is Energy Mediation?

Energy mediation is an alternative dispute resolution (ADR) process that sits between informal complaint handling and full legal action. It involves a neutral third party — either Telnergy acting as your advocate, or a formal ADR body such as the DRO — working to reach a fair outcome between your business and the energy supplier or broker in question.

Mediation is not litigation. It is typically faster, cheaper, and less adversarial. For most business energy disputes, it is also the most effective route to a resolution.

Telnergy provides mediation support across the full spectrum of business energy disputes:

  • Billing errors — incorrect meter readings, wrong tariff rates, estimated bills that significantly overstate consumption
  • Exit fees and unlawful termination charges — fees charged when a contract has not been validly entered into or the terms were misrepresented
  • Auto-renewals — contracts rolled over without the customer’s active consent, often at significantly above-market rates
  • LOA (Letter of Authority) abuse — brokers using a business’s authority to switch suppliers or sign contracts without proper instruction
  • Deemed rate overcharges — businesses placed on out-of-contract rates, sometimes for extended periods, while being billed at the highest possible tariff
  • Commission non-disclosure — brokers who received undisclosed commissions from suppliers, a practice that Ofgem’s October 2024 rules are now designed to prevent

Why Most Businesses Don’t Pursue Disputes — and Why That Is Changing

There are three main reasons businesses historically did not pursue energy disputes:

1. They didn’t know they had a case. Mis-selling is often invisible. A contract auto-renewed at a 40% premium looks like a normal bill. An LOA used without proper authority doesn’t appear on your invoice. Without specialist knowledge of energy contract law, most businesses have no idea they’ve been treated unfairly.

2. They thought it would cost more than it was worth. Legal action against energy suppliers is expensive and slow. For a dispute involving £3,000 in excess charges, instructing a solicitor rarely makes financial sense.

3. There was no formal mechanism to escalate. Until December 2024, the DRO only covered businesses with fewer than 10 employees. The majority of SMEs had no access to binding external dispute resolution.2

All three of these barriers are now substantially reduced. Ofgem’s disclosure rules create a paper trail. The Ombudsman’s expanded remit creates a binding escalation pathway. And Telnergy’s mediation service provides expert advocacy — get a free initial assessment to find out if you have a case.

Telnergy’s Approach to Energy Mediation

Telnergy has been working in business energy for over 24 years. We have seen — and successfully challenged — virtually every form of unfair practice in the sector.

Our mediation service works in four stages:

Stage 1: Case Assessment (Free)

We review your contract history, billing records, Letter of Authority, and any broker correspondence to identify the nature and likely value of your dispute. We will tell you honestly whether we believe you have a viable case, and what outcome is realistic.

Stage 2: Supplier or Broker Engagement

We contact the supplier or broker on your behalf, presenting the case clearly and in the language the industry understands. Many disputes are resolved at this stage — suppliers and brokers are often willing to settle rather than face escalation, particularly since Ofgem’s 2024 regulatory changes increased scrutiny of TPI conduct.

Stage 3: Formal ADR Escalation

If direct engagement does not produce a fair result, we escalate to the appropriate ADR body. For businesses under 50 employees, this is typically the DRO. The Ombudsman can award compensation, require contract corrections, and order refunds — and its decisions are binding on the supplier.5

Stage 4: Monitoring and Follow-Up

Once a resolution is agreed, we monitor implementation to ensure the outcome is properly applied to your account. We also review your current contract to make sure you are not at risk of the same problem recurring.

Real Scenarios Where Mediation Applies

“My broker renewed my contract without asking me.”

This is one of the most common complaints we handle. A broker holds a Letter of Authority that gives them the right to seek quotes on your behalf. It does not, in most cases, give them the right to sign a contract for you. If a broker used your LOA to commit you to a new contract — particularly one that carries a higher commission — that is a potential case for mediation and possible contract cancellation.

“I’m being charged exit fees even though I want to leave a contract I didn’t properly agree to.”

Exit fees are only legally enforceable if you validly entered the contract. If the contract was signed under misrepresentation, if key terms (including broker commission) were not disclosed, or if the contract was renewed without your active consent, the exit fee may be challengeable.

“My bills are much higher than my consumption suggests.”

Billing errors are common, particularly for businesses with complex sites or multiple meters. We have recovered significant overpayments for clients by systematically auditing meter reads, tariff rates, and network charges. One school we worked with recovered £8,200 in annual savings after we identified a combination of billing errors and an above-market contract rate.

“I think I was mis-sold my energy contract.”

The Barings Law class action, launched in 2024, relates specifically to the non-disclosure of commissions by energy brokers — a practice where brokers received payments from suppliers without telling business customers, creating a clear conflict of interest.4 If your broker did not disclose their commission at the time of sale, you may have grounds for a complaint and potentially a claim.

The Regulatory Landscape: Why Right Now Matters

The energy mediation landscape has changed significantly in a short period:

  • October 2024: Ofgem’s new TPI disclosure rules came into force, requiring all brokers to declare the commission they receive from suppliers at the point of sale.3
  • December 2024: The DRO extended its business coverage from fewer than 10 employees to fewer than 50 employees, opening formal ADR to the vast majority of UK SMEs.2
  • July 2025: The Labour government announced full statutory regulation of the TPI sector, putting energy brokers under formal regulatory oversight for the first time.6
  • 2024–ongoing: Barings Law’s class action against mis-selling of business energy contracts continues to progress, with thousands of UK businesses registering interest.4

The message is clear: the regulatory environment is moving decisively in favour of business customers. If you have a grievance, the mechanisms to address it have never been stronger.

Why Telnergy — and Not a Solicitor or Claims Management Company?

There are three ways a business might pursue an energy dispute:

  1. DIY complaint to the supplier — possible, but usually ineffective. Suppliers have experienced complaints teams and business customers typically lack the technical knowledge to challenge them effectively.
  2. A solicitor or claims management company — appropriate for very large or legally complex disputes, but expensive, slow, and often disproportionate for disputes under £10,000.
  3. Telnergy — we combine 24 years of energy industry knowledge with direct relationships across the supplier base. We know the regulatory framework inside out, and our fee structure is agreed with you upfront.

Our fee model is commission-based on future contract savings, not on dispute resolution. When we mediate on your behalf, we do so as part of our broader client relationship. There is no additional charge.

We are also TPI Code compliant, and we operate to independently audited standards of conduct and transparency.

Frequently Asked Questions

Q: What is energy mediation for UK businesses?

Energy mediation is a structured process for resolving disputes between a business and its energy supplier or broker. It can cover billing errors, mis-sold contracts, auto-renewals, LOA abuse, and exit fee disputes. Mediation sits between an informal complaint and full legal action — it is faster, cheaper, and often more effective.

Q: My energy broker renewed my contract without asking me — what can I do?

If your broker renewed your contract without your explicit consent, you may have grounds to challenge the contract and any associated exit fees. A Letter of Authority gives brokers the right to seek quotes on your behalf, not to commit you to new contracts. Contact Telnergy for a case assessment.

Q: How do I dispute a business energy bill in the UK?

Start by raising a formal complaint with your supplier, citing specific errors with supporting evidence. If unresolved within 8 weeks, or if the supplier issues a deadlock letter, escalate to the Dispute Resolution Ombudsman. Telnergy can manage this entire process on your behalf — any fee is agreed upfront.

Q: Does the Dispute Resolution Ombudsman cover business customers?

Yes. Since December 2024, the Dispute Resolution Ombudsman covers businesses with fewer than 50 employees. Its decisions are binding on the energy supplier.

Q: How much does Telnergy’s energy mediation service cost?

Our fee is agreed with you upfront and only becomes payable when a resolution is reached — paid directly or via the supplier, whichever suits you.

Q: What is the Barings Law energy class action about?

Barings Law launched a class action in 2024 over alleged non-disclosure of commissions by energy brokers and suppliers in business energy sales. If your broker did not disclose their commission at the point of sale, you may have a claim.

Q: What is LOA abuse in business energy?

LOA abuse occurs when a broker uses a Letter of Authority to take binding actions — signing contracts or making switches — without the business’s specific instruction. It is a common cause of dispute and can lead to contract challenges and compensation.

Take the First Step

If you suspect your business has been overcharged, mis-sold a contract, or had a contract renewed or signed without your consent, Telnergy can help. Request a free initial case assessment — there is no obligation to proceed.

Contact Telnergy today — tell us what happened, and we will tell you what your options are.

References

Footnotes

  1. Citizens Advice, Business energy complaints data, 2023. ↩

  2. Energy Ombudsman, Extension of ADR scheme to businesses under 50 employees, December 2024. ↩ ↩2 ↩3

  3. Ofgem, Third Party Intermediary (TPI) disclosure rules, October 2024. ↩ ↩2

  4. Barings Law, Business Energy Claims class action, 2024. ↩ ↩2 ↩3

  5. Energy Ombudsman, How our process works for business customers, 2025. ↩

  6. Department for Energy Security and Net Zero, TPI regulation announcement, July 2025. ↩

Telnergy Limited is an independent commercial energy consultancy established in 2002, based in Christchurch, Dorset. Ofgem registered TPI · ADR Ref E3561 · CRN 04576876.