Was Your Business Misled Into an Energy Contract?
Have you been mis-sold an energy contract?
Millions of UK businesses use energy brokers to help arrange their energy contracts, relying on their expertise to secure suitable terms and competitive prices.
However, not all businesses receive the full picture. Some are given misleading information about prices, projected savings, contract length, termination rights, commission arrangements or the options available in the market.
If inaccurate, misleading or incomplete information influenced your decision to enter into an energy contract, you may have grounds to pursue a claim.
At Business Energy Claims, we’ve already helped hundreds of businesses investigate potential claims arising from broker mis-selling, undisclosed commissions and other unfair sales practices. Our average claim exceeds £25,000, with some businesses recovering substantially more.
Whether you were misled about costs, pressured into signing, or sold a contract that was not what you expected, our team can help you understand your options and determine whether you may be entitled to compensation.
We believe thousands of UK businesses may have been affected by energy broker mis-selling, and we’re here to make the claims process as straightforward as possible.
How are energy brokers mis-selling?
Did your energy broker tell you how much in total they made from arranging your business contract? In our experience most don’t, and there’s normally a good reason for that. Brokers know that if they had to fully disclose they would not make anything like the kind of commissions they do if they were transparent, after all would you sign up to a deal if you knew a significant chunk of your bill was going to your broker?
They may even have told you that the service was free, or that the broker got their commission from the supplier as an “introducers fee” or words to that effect.
Typically, most brokers receive their commission directly from the supplier they place you with, and it is built into the unit price they arrange for you. Often, this is not disclosed to the customer.
These are the most common comments we receive around TPI mis-selling:
But my broker saved me money!
This is quite often the case, but this does not determine whether or not you have a claim. In a lot of circumstances it is conceivable that a broker can save you money because of the excessive deal you were on previously, but there can still be a substantial amount of hidden commission resulting in a claim.
Why is the term of the contract so important?
Usually brokers tend to persuade clients to take a longer-term contract than short term, and in doing so claim that the market is likely to increase during this time. However, brokers are motivated to sell longer-term contracts and they are more appealing to them because the commission is multiplied by the length of the contract, usually representing a larger claim amount.
Surely if this was the case the regulator would step in?
Unfortunately, energy brokers are not regulated, and OFGEM have no powers (at present) to deal with them. We are pushing the likes of OFGEM, Citizens Advice etc to enforce a code of practice, and regulate the industry, but in the absence of regulation, we are looking to push for financial redress for businesses that have been mis-sold to.
I’m sure that if they didn’t tell me how much they earned it wouldn’t be much anyway?
That could well be the case and usually clients perceive that brokers do earn a negligible sum that does not affect their energy costs. However, our average claim amount is over £25,000 and this can extend to significantly higher. Our experience tells us that clients are usually shocked to find the true extent of the undisclosed commission amounts.
My financial director checked everything, there’s no way they could have been mis-sold to!
Because of the misrepresentations that can be made and the way in which brokers can mislead, even the most astute finance directors and teams can be mis-sold to.
Brokers aren’t charities, they may not have told me about their commissions but I assume it’s there!
We completely agree. Ultimately energy brokers are businesses and ought to be paid. However, generally brokers are paid by adding a margin to your rates which can occupy a significant proportion of your energy spend and according to the duties that they owe to you, they ought to fully and frankly disclose this to you and the amount of their commission.