Rising energy costs: the single biggest threat to British retailers?

As the UK retail sector battles a host of economic challenges, a largely unaddressed crisis is deepening the threat to its growth and long-term survival: the escalating cost of energy – and the widespread mis-selling of energy contracts by unscrupulous brokers.

Following the Labour government's budget announcement, a report by the British Retail Consortium (BRC) projects a £2.5 billion blow for the industry in 2025. Rising National Insurance contributions, an increase in the National Living Wage, and cuts to business rate relief are already stretching retail businesses’ margins to their limits. But while these policy changes dominate headlines, a widespread issue is going under the radar – one that is costing retailers millions and exacerbating the energy crisis.

At Energy Solicitors Limited, we are witnessing first-hand how hidden commissions embedded in energy contracts are driving up costs for thousands of retailers across the UK. These undisclosed fees, added by unscrupulous brokers without the knowledge or consent of the businesses further threaten the financial health of struggling businesses.

According to a report by FRP Consultancy, 60% of UK retailers cite rising energy costs as the single biggest threat to their profit margins. This pressure is especially acute for high street and physical retailers already reeling from reduced footfall – which declined by 5.4% year-on-year in March 2025 – and the continued migration of consumer activity online.

Many retailers, desperate to cut costs, are turning to third-party energy brokers for better deals. But what they’re often getting is far from fair. Commissions hidden in unit rates – adding thousands of pounds to a business’s energy bill – are quietly eating into already fragile profit margins. These costs siphon funds that could otherwise be invested in staff, inventory, or digitalisation.

Specialist litigation firm Energy Solicitors Limited (ESL) is committed to holding those responsible to account.

Victoria Myers from ESL said: “We specialise in recovering losses for businesses who were mis-sold energy contracts and ensuring that brokers operate with transparency and integrity. Our legal team has successfully helped a wide range of retailers reclaim money that was unfairly taken from them.

“In today’s challenging economic climate, every penny counts. Retailers should not be penalised for trusting energy professionals to act in their best interests. It is critical for energy brokers to be transparent and accountable. When they’re not, businesses have the right to take action – and we’re here to help them do exactly that.” 

As the UK retail sector fights for survival amid inflation, wage pressures, and policy shifts, fair energy practices must be part of the solution. 

Victoria added: “At Energy Solicitors Limited, we believe that tackling the hidden energy commission scandal is not just about recouping losses – it’s about restoring trust, safeguarding livelihoods, and helping UK retailers build a more resilient and equitable future.”