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Business energy supplier complaints: Process and escalation
Unlike domestic tariffs, business energy contracts have far fewer statutory protections. There is no cooling-off period, safeguards against automatic renewals are limited, and exit fees can be substantial. As a result, billing disputes and contract disagreements are common among business customers.
This guide explains how to prepare a complaint to your business energy supplier and how to escalate it through the Energy Ombudsman and beyond. Here’s what we cover:
- Raising complaints with your business energy supplier
- Using the business Energy Ombudsman to resolve complaints
- Energy Ombudsman complaints resolution process for businesses
- Alternative dispute routes for business energy supplier complaints
Reasons for business energy supplier complaints
According to the Energy Ombudsman, the most common complaints addressed through its dispute resolution service are:
- Disputed gas or electricity usage
- Disputed account balances
- Late or inconsistent billing
Some common complaints raised by business customers include:
- Issues arising from tariff renewal practices, particularly concerning excessive exit fees on automatic rollover contracts.
- Concerns about the inclusion of business energy broker commission in business gas rates and business electricity prices.
- Delays, objections, or unnecessary obstacles to switching business energy suppliers.
- Erroneous transfers of business energy suppliers.
- Disputes over change-of-tenancy rules when moving properties.
Raising complaints with your business energy supplier
All complaints about a business energy supplier must first be raised through the supplier’s official complaints process.
The best business energy suppliers provide a dedicated webpage outlining their complaints process. This process typically starts with an initial discussion with a customer service representative, followed by escalation to a dedicated complaints team.
If your complaint is not resolved quickly after the initial discussion, we recommend requesting a complaint reference number and continuing your communication via email.
This helps to formalise your complaint and allows you to retain evidence of how it has been handled, which will be useful in the event of further escalation.
Preparing a formal complaint
When preparing a formal complaint with a business energy supplier, we recommend including:
- Your details: Business name, account number, contact information, complaint reference number, MPAN/MPRN.
- Summary of the complaint: Clearly and concisely describe the issue.
- Evidence: Highlight supporting documents (attach copies where relevant).
- Requested resolution: State what you want the supplier to do.
- Next steps: Mention your intention to escalate if the issue is not resolved.
Ofgem’s Complaint Handling Standards require energy suppliers to handle formal complaints in an efficient and timely manner.
Suppliers complaint process
On receiving your formal complaint, the supplier should acknowledge it, and a dedicated complaints team will begin the process of:
- Investigating what happened
- Providing regular updates
- Offering written conclusions
Before escalating the complaint, it is necessary to give your supplier time to respond. Most complaint escalation options require you to have engaged with the internal complaints process for at least eight weeks.
Deadlock letter
A ‘deadlock’ letter is a communication (via letter or email) from your business energy supplier stating that it has been unable to resolve your dispute.
Receiving a deadlock letter gives businesses the right to use the Energy Ombudsman’s dispute resolution service.
Using the business Energy Ombudsman to resolve complaints
The Energy Ombudsman provides a free and impartial dispute resolution service for consumers, suppliers, and brokers in the energy sector.
Small business customers can use the Energy Ombudsman to escalate and resolve complaints with business energy suppliers if:
- The complaint has been ongoing for at least eight weeks without resolution; or
- The supplier has issued a deadlock letter.
Business size requirements
Since December 2024, both small and microbusiness customers have been eligible to use the Energy Ombudsman service.
This means the service is available to businesses that meet either of the following criteria:
Financial criteria:
Fewer than 50 employees or their full-time equivalent, and an annual turnover of no more than £6.5 million or a balance sheet total of £5.0 million.
Consumption criteria:
Annual business energy consumption is less than:
- 200,000 kWh of electricity
- 500,000 kWh of gas
Powers the Energy Ombudsman has over complaints
The Energy Ombudsman has statutory and enforceable powers over commercial electricity and business gas suppliers.
At the end of the complaints process, the Energy Ombudsman issues a final decision, which the customer can either accept or reject.
If the final decision is accepted, the energy supplier must comply with it. The Ombudsman has the authority to require the supplier to take specific actions, which may include:
- Corrective action – for example, correcting bills, reversing incorrect charges, or updating incorrect meter readings.
- Compensation – the Ombudsman can require the supplier to provide compensation of up to £20,000.
- Contractual remedies – the Ombudsman can direct the supplier to terminate a business energy contract without fees.
- Explanations and apologies – the Ombudsman can require a supplier to issue a written apology and an explanation of what went wrong.
Energy Ombudsman complaints resolution process for businesses
The Energy Ombudsman’s dispute resolution process is designed to provide an impartial resolution to complaints without the hassle and expense of taking your supplier to court.
Here’s how the process works:
1. Registering your dispute and submitting documents
The process starts by raising a formal complaint against your supplier using the Ombudsman’s online form.
Once the complaint has been registered, you will have 14 days to submit evidence supporting your claim.
Supporting evidence typically includes copies of all correspondence with the supplier, relevant commercial gas and business electricity bills, and bank statements.
2. The Ombudsman reviews your case
The Energy Ombudsman assesses the dispute against:
- Energy supply licence conditions
- Ofgem rules and guidance
- Contract terms
- Principles of fairness and reasonableness
- Industry good practice
The Ombudsman does not rule on legal points in the same way a court does. Instead, it considers whether the supplier acted fairly, reasonably, and in line with the relevant rules.
On average, the Ombudsman’s review takes six weeks, but it can take longer for more complex cases.
3. The Ombudsman issues a proposed resolution
At the end of the review, the Energy Ombudsman will send you and your supplier a proposed resolution.
If you choose to accept the proposed resolution, the supplier will be required to carry out any corrective action set out in it.
Alternatively, you can choose to reject the proposed resolution and instead escalate the complaint further. We explain the escalation options in the next section.
Alternative dispute routes for business energy supplier complaints
This section sets out three alternative dispute mechanisms that can be used to resolve business energy supplier complaints.
These routes are typically used by large business energy customers that do not meet the Energy Ombudsman’s size requirements, or by businesses that do not accept the Ombudsman’s decision.
Mediation
A mediation service provides an impartial mediator to facilitate negotiations between you and your supplier. Any settlement reached through mediation is only binding if both parties agree.
Typically, both parties share the costs of a third-party mediation service. Popular mediation services for business energy customers include:
- CEDR (Centre for Effective Dispute Resolution)
- RICS dispute resolution
Arbitration
Some business energy contracts include an arbitration clause, under which disputes between the supplier and the customer must be resolved through a private adjudication process.
The arbitration process results in a binding decision on both parties, depending on the precise contractual terms agreed.
Court proceeding
Court action is the final stage in escalating a business energy complaint. In a litigation process, the courts have full powers to:
- Enforce contracts
- Award unlimited damages
- Compel disclosure
Typically, the courts will require you to have navigated the supplier’s internal complaints process, as well as attempted to resolve the complaint through the Energy Ombudsman or mediation, before they will accept litigation.
Litigation in the UK is expensive, and the legal fees involved can often exceed the value of the dispute. Cases often take 12–24 months.
Business energy supplier complaints – FAQs
Our business energy experts answer common additional questions about the business energy supplier complaints process.
Can I switch suppliers while filing a complaint?
Typically, the complaints process does not prevent you from switching business energy suppliers; however, a supplier can block a switch request due to:
- Outstanding balances or unpaid debts (even if these are disputed)
- Being within a fixed contract term
What if my supplier goes out of business during the complaint process?
If your business energy supplier goes out of business, Ofgem will appoint a Supplier of Last Resort, which will automatically become your new supplier.
However, the complaint will not be transferred to your new supplier. Instead, it will be handled by the administrator of your existing supplier.
If you are owed money or compensation due to the unresolved complaint, it will form part of the insolvency process.
What is Ofgem’s role in business energy complaints?
Ofgem is the energy market regulator. Ofgem does not get involved in the handling of individual energy supplier complaints for domestic or business customers.
Instead, Ofgem monitors complaint data from the Energy Ombudsman and individual suppliers to ensure that suppliers are complying with their licence conditions.
Ofgem does have the power to withdraw licences from suppliers in the retail energy market, but it will only do so where there are systemic failures by an individual supplier.
How can I prevent disputes with my energy supplier?
The majority of business energy supplier disputes can be avoided by taking the following proactive measures:
- Careful contract review – Business energy contracts are legally binding and have no cooling-off period, so we recommend reviewing them carefully and avoiding entering into verbal contracts.
- Automatic meter readings – We recommend upgrading to smart business energy meters where possible to avoid estimated bills from your supplier.
You may also wish to consider using our business electricity comparison and business gas comparison services to switch to a supplier that is known for high levels of customer service and transparent practices.
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