After an exhausting two-year fight, SME business owner and MBE charity recipient Param has successfully forced EDF Energy to acknowledge that his refund of £321.80 was never issued—after taking them to the Energy Ombudsman and, eventually, to court.
However, Param is now asking – if it took this much effort for a seasoned entrepreneur to reclaim a relatively small sum, how many other small businesses are being ignored or wrongfully denied refunds by energy companies?
The issue began in February 2023, when Param, who had overpaid on his EDF account, was promised a refund. Months later, after repeated follow-ups, EDF claimed a cheque had been issued and cashed. But there was just one problem: Param had never received it.
Despite providing clear evidence—including bank statements showing no deposit and mail logs confirming no delivery—EDF stopped responding. Left with no other option, Param escalated the case to the Energy Ombudsman. However, instead of examining the facts, the Ombudsman ruled in EDF’s favour, suggesting that the cheque must have been deposited elsewhere.
“When I appealed, I presented clear proof that I hadn’t received or cashed the cheque,” Param explained. “But the Ombudsman seemed more focused on closing the case than properly investigating.”
Determined not to be dismissed, Param took EDF to court in November 2024. Instead of acknowledging their mistake, EDF’s legal team attempted to have the claim struck out, citing a lack of legal grounds. They even warned that, if he continued, they would seek legal costs against him.
“It felt like they assumed I wouldn’t have the resources or knowledge to push back,” Param said. “The Ombudsman had already dismissed me without proper investigation, and EDF clearly thought I would give up, like many others. But they underestimated me.”
Before going to court, Param sought free legal advice through his employer’s legal advice line, which confirmed his right to pursue legal action. “That advice gave me the confidence to move forward,” Param said. “It was invaluable knowing I was on solid legal ground.”
Finally, during court mediation in December 2024, EDF agreed to investigate the matter further. By March 2025, EDF’s legal team confirmed that the bank had made an error and that Param was indeed owed the refund.
The irony? When EDF agreed to refund the money, Param had to remind them to include £11.18 in statutory interest. “As the claimant, I reserved the right to claim interest under Section 69 of the County Courts Act 1984. Maybe SME owners aren’t so easily dismissed after all,” he quipped.
This case raises serious concerns about how energy companies treat small business owners. If it took this much time and effort to recover £321.80, how many other SMEs are being unfairly denied refunds simply because they lack the time or resources to fight back? How many are owed larger sums of money that could help manage their cash flow?
Param affirms that his ordeal isn’t an isolated case. He previously faced another issue with EDF when his gas bill for a six-bedroom property was increased from £200 to £1,800 per month—a staggering 800% hike. Only after reaching out directly to the CEO was the rate adjusted to a more reasonable level.
As another example of SME resilience, Param even turned to AI to counter EDF’s legal arguments. “When they filed a defence to have the case thrown out, I used ChatGPT to draft my legal response. AI turned out to be a lifesaver.”
With rising costs already putting immense pressure on small businesses, Param says energy giants like EDF must be held accountable.
He says: “My case serves as a wake-up call: if this can happen to me, it’s likely happening to many other small business owners. Energy companies need to recognise the financial strain they impose on SMEs and take greater care in resolving issues fairly and promptly.”
