You have found yourself tied into a business energy contract, and aren’t happy with how you were ‘sold’ it. Read this guide to see if you might be able to cancel a business electricity contract.
Can I cancel a business electricity contract?
If you want to cancel a business energy contract because you have stopped trading or are moving premises, this is straightforward. You can read advice here about energy contracts and moving premises.
However, if you have taken a call and agreed a business energy contract over the phone, this may well have been mis-sold.
Are business electricity contracts mis-sold?
Business electricity contracts are legally binding documents. However, a small percentage of these are undoubtedly mis-sold to businesses. This can be by a rogue ‘broker’ or even a supplier. Examples can be:
You have moved into new premises and the phone didn’t stop ringing
This often happens. Rogue brokers constantly harangue you, calling up to a dozen times a day. At first, you are happy to give some information over the phone. Unfortunately, they can use this information to cobble together a verbal contract. At very high rates. Astonishingly, if you politely decline, they can get quite rude and aggressive!
You signed a Level 2 letter of authority
All brokers need a Letter of Authority (LOA) as this tells suppliers they have your permission to discuss your energy supply. However, some ‘brokers’ will use Level 2 Letter of Authority which gives them the same power as a company director. They can sign energy contracts on your behalf without informing you first. Only ever sign a Level 1 LOA.
Your supplier called to explain you were near the end of your contract and need to agree a new one urgently
First of all, this probably wasn’t your supplier. More likely an unscrupulous broker. If it was your supplier, they might have also been quite pushy and panicked you into agreeing something without checking the price elsewhere.
Cancel a business electricity contract you have been mis-sold
We receive several calls a week from business owners who have received a cold call (often from BES Utilities or Commercial Power), and are concerned they have agreed to a contract with high rates.
We can help you to look into this and advise whether we can get you out of the contract and save you money. Before you call us, please ask your energy supplier for proof of contract. This will either be a copy of a signed paper contract, or a recording of the agreement taken over the phone.
If your supplier can’t provide this, then in essence, there is no contract.
If they can provide proof of contract, we will look at the validity of this. This will involve any pressure seemingly applied to a verbal contract over the phone.