Business energy contracts arranged through brokers: information for customers of Bionic Services Ltd

Issues being raised by some businesses

The enquiries we are reviewing raise questions including:

• Whether businesses were given clear, fair and sufficient information about how broker commission operated and how it affected the overall cost of their energy contract.
• Whether commission arrangements may, in some cases, have influenced the pricing or structure of the energy tariff offered, particularly on renewal.
• Whether renewal contracts represented fair value when compared to alternative options available in the market at the relevant time.
• Whether customers fully understood the basis on which renewal recommendations were made, especially where longer-term contracts were entered into under ongoing broker arrangements.

In some cases, businesses report that concerns only came to light some time after the contract was agreed, for example when reviewing historic invoices, comparing prices against later market rates, or seeking independent advice.

Public context

Concerns about transparency and renewal practices in the business energy brokerage sector have also been discussed more widely. Media outlets have reported on customer dissatisfaction with aspects of energy broker renewal processes, and there are online forums where individual business owners have publicly shared their experiences and concerns about contract terms, communication and renewals.

Limitation of online commentary

Online reviews and discussion forums do not establish facts and individual experiences vary. However, they indicate that these issues are not unique to a single business and form part of a broader discussion within the sector about transparency, customer understanding and value at renewal.

Regulatory background

There is also an established regulatory backdrop in this area, with Ofgem having published guidance aimed at protecting microbusinesses engaging with third-party intermediaries and brokers, and with formal complaint routes available where disputes cannot be resolved directly.

Who may wish to seek advice

You may wish to take advice if:

• You entered into a business gas or electricity contract through Bionic Services Ltd.
• Your contract involved a renewal or extension of an earlier agreement.
• You were not clearly informed about broker commission, how it was calculated, or how it affected your unit rates.
• You later became concerned that the pricing of your contract did not reflect prevailing market rates at the time it was agreed.

Both SMEs and larger commercial entities may be affected. Not every business introduced by Bionic Services Ltd will have a potential claim, and much will depend on the specific contractual documentation, communications and circumstances.

Our approach

We have extensive experience acting for businesses in complex energy mis-selling and pricing disputes, including matters involving broker commission, transparency and conflicts of interest.

Our approach typically includes:

• A detailed review of contracts, broker communications and billing data.
• An assessment of whether pricing and commission arrangements were sufficiently explained and understood at the point of sale or renewal.
• Early consideration of limitation, funding and insurance options.
• Engagement with brokers and suppliers through the pre-action process where appropriate.

Where suitable, we are able to offer funding arrangements, including Conditional Fee Agreements, subject to eligibility.

Next steps

If you were introduced to a business energy contract through Bionic Services Ltd and have concerns about how that contract was sold or renewed, it is important to seek advice at an early stage. Limitation periods apply, and delay may affect your ability to pursue a claim.

We are particularly interested to hear from other customers who may have had similar concerns, so that the position can be properly assessed.

Contact us for a no-obligation review to discuss your circumstances and understand what your next steps could look like.