Energy regulator Ofgem has warned energy suppliers against hiking bills without disclosing fees paid to brokers.
Ofgem proposed a series of new measures on Wednesday, following months of concern that businesses were unknowingly facing higher energy bills because of commissions for brokers.
“Many stakeholders told us that they did not understand the reasons for some large increases to their bills,” Ofgem said in a market review.
“They were not always sufficiently aware of what they were paying to third-party intermediaries, such as energy brokers.”
Ofgem has requested more power from the government to order redress and govern brokers as a result of the “hidden” fees - as dubbed by hospitality industry bodies.
More businesses could also be allowed to directly complain to the energy ombudsman under proposed rules, offering routes other than legal proceedings to settle disputes.
According to a coalition representing some 1mln UK businesses, suppliers overcharge by billions of pounds on bills to fund brokers that sell their deals.
Small businesses could be eyeing claims of up to £2bn as a result of the practice, lawyers Leigh Day and Harcus Parker have said, with a class action suit having been launched against the “malpractice”.