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Court of Appeal ruling empowers businesses to reclaim hidden energy broker fees

March 26, 2025

A landmark ruling by the Court of Appeal has set a powerful legal precedent in the battle against energy mis-selling, giving thousands of UK businesses new grounds to reclaim hidden fees charged by energy brokers.

The judgment significantly clarifies the legal responsibilities of energy brokers, also known as Third Party Intermediaries (TPIs), marking a pivotal step in holding them to account. While the Supreme Court is still to consider the extent of energy suppliers’ liability, the Court of Appeal’s findings have already reshaped the legal landscape for commercial energy contracts.

Victoria Myers, Director at specialist litigation firm Energy Solicitors Limited (ESL), called the decision “a crucial moment in the ongoing battle against energy mis-selling.”
“Brokers must now operate with greater transparency and businesses are in a stronger position to challenge unfair practices,” she said. “We will be right by their side to ensure they successfully do that.”

At the heart of the ruling is the principle of informed consent. The court found that it is no longer sufficient for brokers to make vague references to commissions or rely on industry norms. Businesses must be given clear and specific information — including the exact amount of commission being charged, how that fee affects the total cost of energy, and the way in which the broker’s payment structure may influence the contract being recommended.

This significantly raises the bar for transparency, making it much harder for brokers to conceal fees through generalised disclosures or vague contractual language.

The case also addressed typical defences relied upon by brokers and suppliers. Arguments that clients should have known about hidden commissions based on common market practices were dismissed. Similarly, the court rejected attempts to use contractual clauses to avoid fiduciary responsibility, reinforcing that brokers owe a fundamental duty to act in the best interests of their clients.

ESL, which represents businesses mis-sold energy contracts, estimates that firms could recover thousands of pounds over the course of a typical energy agreement. Victoria Myers warned that the risks posed by the rapidly expanding — and still unregulated — energy broker market should not be underestimated.

“With the broker market continuing to grow rapidly, this ruling provides a vital safeguard for businesses seeking fair and honest energy deals,” she said. “Running a business is hard enough without being misled into paying hidden commissions that inflate already high energy costs.”

The Court of Appeal’s decision comes as the TPI market continues to surge. According to Cornwall Insight, the value of the intermediary sector has more than doubled over the past decade — from £232 million in 2014 to £525 million in 2024. Despite their pivotal role in arranging commercial energy contracts, many brokers operate without regulation, creating opportunities for conflicts of interest and mis-selling.

Now, with the Court of Appeal setting a clear benchmark for broker conduct, businesses have a much stronger legal foundation to challenge past contracts and pursue claims for undisclosed commissions. The judgment also brings much-needed clarity to what has long been a confusing and opaque market.

In the absence of tighter regulation, this ruling is being seen as a major step forward in protecting businesses and ensuring fairness in the energy sector. It signals a turning point in the fight for transparency — and a potential lifeline for companies that have unknowingly paid over the odds.