Business energy supplier complaints

Business energy suppliers aren’t perfect, and mistakes can happen, so raising complaints is sometimes necessary.

The best business energy suppliers strive to provide excellent customer service, and most issues can be resolved with a simple phone call to customer services.

This guide focuses on situations where your business energy supplier cannot or does not resolve your issue quickly. Here’s what we cover:

Raising complaints with your business energy supplier
Business energy supplier compensation
Using the Energy Ombudsman to resolve complaints
How to prevent future disputes with energy suppliers

Common reasons for business energy supplier complaints

According to the Energy Ombudsman, the most common complaints addressed through their dispute resolution service are:

Disputed gas or electricity usage
Disputed account balances
Late or inconsistent billing

Some specific complaints frequently raised by business customers are:

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 or unnecessary obstacles to switching business energy suppliers
Disputes over change of tenancy rules when moving properties

Raising complaints with your business energy supplier

The first step in managing a complaint with a business energy supplier is to contact their customer service department.

Most business energy suppliers provide a dedicated webpage outlining their complaints procedure. This procedure typically escalates as follows:

Initial discussion with a customer service representative
Escalation to a dedicated complaints team
Issuance of a deadlock letter

If your complaint isn’t quickly resolved after an initial discussion with the customer service team, we recommend requesting a complaint reference number and continuing your communication via email. This will allow you to retain evidence of how your complaint has been handled.

Preparing a complaint

When preparing a formal complaint with a business energy supplier, we recommend including:

Your details: Business name, account number, contact information, and complaint reference number
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 isn’t resolved

Ofgem’s Complaint Handling Standards require energy suppliers to handle formal complaints in an efficient and timely manner.

Deadlock letter

A ‘Deadlock’ letter is a communication (via letter or email) from your business energy supplier stating that they have been unable to resolve your dispute.

Receiving a deadlock letter gives microbusinesses the right to use the Energy Ombudsman’s dispute resolution service.

Can I switch suppliers while filing a complaint?

Typically, the complaints process does not prevent you from switching energy suppliers; however, a supplier can block a switch request due to:

Outstanding balances or unpaid debts (even if these are disputed)
Being currently within a fixed contract term

What if my supplier goes out of business during the complaint process?

If your business energy supplier goes bust, Ofgem will appoint a Supplier of Last Resort, who 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 become part of the insolvency process.

Business energy supplier compensation

The energy regulator Ofgem enforces the Standards of Performance for business energy suppliers and distribution network operators regarding delivering electricity and gas to businesses and consumers.

These performance standards prescribe a certain level of compensation for failures.

For the 2024/25 year, the standard compensation amounts for the most common business energy supplier complaints are as follows:

Category	Description	Compensation (Domestic)	Compensation (Non-Domestic)
Supply interruptons	Restoration during normal conditions: Supply must be restored within 12 hours after a fault.	£95	£180
	Additional compensation for each further 12-hour delay.	£40	£40
	Restoration during severe weather (Categories 1, 2, and 3): Supply must be restored within 24–48 hours, depending on severity.	£85–£95	£85–£180
Multiple Interruptions	Compensation for multiple supply interruptions within a year: Supply must be restored within 24 hours.	£85	£85
	Additional compensation for each further 12-hour delay.	£40	£40
Responding to Faults	Failure of distributor's fuse: Must respond within 3 hours on a working day or 4 hours on any other day.	£35	£35
Planned Supply Interruptions	No advanced notice provided for planned supply interruptions.	£35	£35
Appointments	Compensation for missed or rescheduled appointments without proper notice.	£35	£35
Notifications	Informing customers of compensation due: Notification must be made within 10 working days.	£35	£35

Source: Ofgem – Guaranteed Standards of Performance Payments

To claim compensation outlined in the above table, we recommend contacting your supplier’s customer service department.

Using the 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.

The Energy Ombudsman service can be used by domestic or small business energy customers whose supplier has either issued a deadlock letter or has been unable to resolve their complaint within eight weeks.

Energy Ombudsman’s criteria for businesses

The Energy Ombudsman offers its free dispute resolution service to small businesses that meet either of the following two criteria:

Annual business energy consumption does not exceed:

100,000 kWh of electricity; or
293,000 kWh of gas

The business employs fewer than 10 employees, with both annual revenue and total balance sheet less than €2 million.

Large business energy customers with unresolved complaints typically escalate disputes through legal action in small claims or civil courts.

Energy Ombudsman dispute resolution process

The Ombudsman’s dispute resolution process is designed to provide an impartial resolution to your complaints without the hassle and expense of taking your supplier to court.

Here’s a summary of how the process works:

Register your dispute using the Ombudsman’s online form.
Submit supporting documents, including copies of all correspondence with the supplier, relevant bills, and bank statements.
The Ombudsman reviews your case and makes an impartial decision based on the evidence you provided.
Decide on the outcome by either accepting the proposed remedy or escalating the dispute to the courts.

How to prevent disputes with energy suppliers

The majority of business energy supplier disputes can be avoided with proactive measures. Below, we recommend best practices to help you avoid issues with your business energy tariff.

Careful contract negotiations

We recommend thoroughly reviewing your business energy contract to ensure you understand all the terms and conditions.

Unlike domestic contracts, business energy contracts have no cooling-off periods, meaning they are immediately legally binding upon signing or through a verbal agreement made over the phone, where the terms of the contract are explicitly outlined and accepted during the call.

Consider using our business energy comparison service to discuss your company’s needs with our impartial experts. They can help negotiate the best deal with our panel of commercial electricity and business gas suppliers.

Monitoring energy consumption

We recommend submitting regular meter readings to your supplier to avoid large, unexpected bills caused by your supplier estimating your energy consumption.

The easiest way to manage this is to request a free upgrade to a smart business energy meter. This will automatically submit readings to your supplier and provide you with access to valuable business energy monitoring data.