A consumer watchdog is warning businesses to be on their guard against possible scams that some disreputable energy brokers are using.

The warning comes after energywatch has received "hundreds" of complaints and calls from firms wanting help and advice on the issue.

Energywatch's business service believes that some brokers are targeting new businesses in an attempt to sign up new customers and earn commissions by taking advantage of people who may not be wise to the shadier side of the business environment.

The watchdog said that the rogues may be targeting pubs, hotels and restaurants as they use a relatively high amount of energy for a small business and therefore are more profitable.

energywatch wants businesses to be on the guard for these type of Broker scams:

"You don't have a supply - you must sign up now or else you won't have any power to run your business"

"Did you know you're likely to be disconnected if you don't find a supplier"

"I'm ringing on behalf of the government to check that they are getting the best energy rate"

energywatch Business spokesperson, Karl Brookes, said: "One of the definitely dodgy things is disreputable brokers pretending to be independent. They ring up offering to help find the best deal possible but they really only represent one or two firms and then try to pass them off as the cheapest."

He added that it was unfortunate that some shady brokers were harming the reputation of the industry as a whole, which included a lot of good ones.

Diane Mcbeth, 42, co-owner of The New Brig Inn, Montrose, who found herself mis-sold to by one firm, said: "It was very confusing. Anybody who has started a business knows how hard it is. But once we contacted energywatch business unit, things were resolved speedily."

Jackie Doyle, 45, of a well established business, Xplosive fashions in Leeds, said: " I felt that I had been totally conned. I didn't expect major household names to treat a fellow business person in this way."

The watchdog advises all businesses, but especially new ones to:

1 Be careful what they say over the phone when negotiating energy deals - it could represent a binding verbal contract

2 Shop around and do your own research - energywatch's business unit can help you on 0845 9060708 or business.enquiries@energywatch.org.uk