This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn what energy mis‑selling is in the UK, how to recognise if you've been mis‑sold an energy contract, your legal rights under consumer and contract law, and the practical steps to complain, escalate to the Energy Ombudsman or pursue a claim. This clear guide explains key terms, processes and time limits for both domestic consumers and businesses.
A mis‑sold energy contract arises when a consumer - whether a household or business - enters into a gas or electricity contract because of unfair, misleading or aggressive sales practices, poor disclosure or incorrect information about the tariff, costs or terms. Such practices can lead to customers paying significantly more than they should, being locked into unsuitable contracts, or entering agreements without fully understanding what they have agreed. Energy mis‑selling is a recognised issue in the UK energy market and is something that both domestic consumers and businesses may face.
This article explains what mis‑selling means in the energy context, your rights under UK consumer and contract law, how to identify a mis‑sold energy contract, what legal and regulatory options exist to challenge a mis‑sell, typical processes for complaints and claims, relevant time limits and practical steps you could consider. It is intended to inform and educate; it does not constitute legal advice.
What Is Energy Mis‑Selling?
Energy mis‑selling occurs when information given before or during the sale of a gas or electricity contract is inaccurate, incomplete or presented in a misleading way, causing the consumer to enter into a contract they otherwise would not have chosen. Mis‑selling can involve:
- Misleading information about price or savings - being told a tariff is cheaper when it is not.
- Incorrect or omitted contract terms - key information, such as tariff type or contract length, is withheld or inaccurately described.
- High‑pressure or aggressive sales tactics, including unsolicited doorstep visits or cold calls that pressure a consumer to decide immediately.
- Failure to disclose rights, such as the right to a cooling‑off period after distance selling.
Both domestic and commercial customers can be affected, though the rights and protections differ depending on whether the customer is acting in a personal or business capacity.
Legal Framework: Consumer and Contract Law
Consumer Protection from Unfair Trading Regulations 2008
These regulations make it unlawful for traders to use unfair commercial practices, including misleading actions or omissions that would likely distort the economic behaviour of a typical consumer. If an energy supplier or broker makes false statements or omits key information, this could amount to an unfair commercial practice.
Consumer Contracts Regulations 2013
When an energy contract is concluded at a distance - for example, by telephone or online - consumers generally have a 14‑day cooling‑off period during which they can cancel without penalty. Suppliers must inform consumers of this right before the contract is concluded.
Contract Law and Misrepresentation
Under standard contract law, a misrepresentation (a false statement of fact that induces someone to enter a contract) can make a contract voidable. Depending on the nature of the misrepresentation (innocent, negligent, or fraudulent), remedies can include rescission of the contract or damages. This principle applies regardless of whether the contract is domestic or commercial.
Business Energy Mis‑Selling
Commercial energy contracts are subject to fewer statutory protections compared with domestic contracts. This means that businesses often rely on terms of the contract itself and general contract law principles, including misrepresentation and breach of implied terms such as the duty to provide services with reasonable care and skill under the Consumer Rights Act 2015 (where applicable to small businesses).
How to Identify a Mis‑Sold Contract
Recognising mis‑selling can be straightforward in some cases and complex in others. Common indicators include:
- You were not given clear, accurate information about the contract terms, price or total cost before agreeing.
- You were told a tariff offered savings that cannot be substantiated.
- Sales communications pressured you to sign immediately, offered unrealistic limited‑time deals, or included tactics you now recognise as high‑pressure.
- You were switched without explicit consent and without confirmation of the new contract.
In the business context, additional signs include undisclosed broker commissions or hidden fees in the contract that were not properly explained.
What You Can Do If You Suspect You've Been Mis‑Sold
1. Raise a Complaint With Your Supplier
Start by contacting the energy supplier in writing, clearly setting out why you believe the contract was mis‑sold and what outcome you seek. Domestic suppliers are required to have a formal complaints procedure, and you should receive information about this on your bills or on their website. Keep detailed records of all correspondence.
Example issues to raise include incorrect information given before the contract was agreed, failure to explain key terms, or pressure that led to an uninformed decision.
2. Allow Time for Supplier Response
Suppliers are expected to address complaints within eight weeks. If they cannot resolve the issue or issue a satisfactory response (often called a deadlock letter), this is a key step before escalating.
3. Take the Complaint to the Energy Ombudsman
If your complaint remains unresolved after eight weeks, or you receive a deadlock letter, you can refer your case to the Energy Ombudsman. The Ombudsman is an independent service that investigates disputes between consumers and energy suppliers or certain network operators. Its decisions are binding on suppliers, meaning they must implement remedies, which can include compensation or rectification.
4. Consider Legal Action
In some cases, particularly where significant financial loss has occurred, you might consider pursuing a claim through the courts. This could involve arguing that the supplier or broker made a misrepresentation or breached contractual terms. For commercial mis‑selling, specialist legal advice can be crucial, as rights and remedies differ from domestic cases.
Time Limits and Other Practical Considerations
Time Limits
For most complaints to the Energy Ombudsman, you must raise the issue with the supplier within eight weeks before escalating. For legal claims in court, time limits vary depending on the cause of action (for example, claims for misrepresentation typically need to be brought within six years of the contract date). It is important to seek specific advice if you are close to relevant limitation periods.
Costs
Complaints to energy suppliers and the Energy Ombudsman are generally free for consumers. Legal action through the courts may involve costs, and you should weigh these against potential benefits. Some solicitor firms offer no‑win, no‑fee arrangements for certain types of claims.
Practical Examples
A domestic household contacts their supplier after discovering their tariff was substantially higher than they were told at the point of sale. The supplier fails to resolve the issue within eight weeks. The household refers the dispute to the Energy Ombudsman, which could uphold the complaint and order compensation.
A small business believes an energy broker mis‑sold a commercial contract by failing to disclose commission and by recommending a tariff that is not suitable for their usage profile. A solicitor may assist in investigating contractual terms and seeking either a negotiated settlement or a claim for breach of contract and/or misrepresentation.
Final Thoughts
Mis‑sold energy contracts are a recognised problem in the UK energy market, affecting domestic consumers and businesses alike. The law provides a range of protections grounded in consumer and contract law, and regulators like Ofgem enforce rules designed to ensure fair dealing. If you suspect you have been mis‑sold an energy contract, the practical steps include making a structured complaint to your supplier, escalating unresolved disputes to the Energy Ombudsman, and, where appropriate, considering legal claims for misrepresentation or breach of contract. Keep thorough records, act within applicable time limits, and seek professional advice for complex commercial situations.
