The UK’s leading organisation in tackling energy broker mis-selling, Business Energy Claims, is delighted to announce energy regulator Ofgem has vowed to crack down on ‘unscrupulous’ UK energy brokers.
Ofgem has this week announced its commitment to taking action against the overcharging of small businesses through inflated, and often undisclosed commissions and hidden fees.
Callum Thompson, MD at South Tyneside-based Business Energy Claims, has lobbied tirelessly to bring transparency and justice to the industry in a bid to tackle the unregulated market of commercial business energy.
Callum said: “The multi-billion-pound problem of energy mis-selling is a reflection of decades of bad practice from a number of suppliers, brokers and consultants. This has allowed the commercial business energy industry to adopt inappropriate behaviours in the marketplace including misguided advice to businesses, with regards to their energy contract choices.”
High margins, hidden commissions and significant cash advances have allowed the ongoing exploitation of business customers over the years. Representing businesses across the UK from their North East base, Callum and the Business Energy Claims team welcome the long overdue intervention by Ofgem.
“The key to unravelling this widespread injustice is appropriate legislation and regulation” exclaimed Callum.
He added: “The real and negative impact on businesses across the UK has seen them overpaying to the tune of hundreds of millions of pounds. When we were approached by Ofgem to assist with research and evidence into the extent of the mis-selling problem in the energy market, we were happy to assist.”
According to Ofgem , businesses, charities and public bodies spend £25 billion per annum on energy. A significant per centage is often made up of the undisclosed fees that are stinging UK businesses year after year.
A detailed report submitted by Business Energy Claims has helped to shape this week’s Ofgem announcement as they found that an estimated 90% of microbusinesses using an energy broker are likely to have fallen prey to one or more forms of mis-selling as a result of the lack of official regulation to protect them.
Ofgem’s plans include stricter monitoring of brokers’ conduct through clear responsibilities for energy suppliers. This aims to ensure that those who sell the deals are cascading information transparently and that costs to business customers are not unfairly inflated.
The plans include new responsibilities for energy suppliers to monitor the conduct of the brokers that sell their energy deals, to ensure that key contract details and commission fees are more transparent.
Callum concluded: “With energy commissions occupying up to a staggering 50% of energy costs, Ofgem’s review of the energy broker market confirmed our existing knowledge of the deep-rooted issue of inflated energy deals sold on behalf of major energy suppliers across the UK. We are pleased Ofgem are now addressing the issues of harm to microbusinesses, although our experience tells us this can extend to non-micro businesses to almost the same extent.”
“We have the knowledge and experience to assist businesses large and small across the country to reclaim money lost as a result of these extravagant commissions and fees. This is perhaps even more relevant now than ever, as businesses strive to emerge post-Covid-19 after a difficult operating period.”
The Business Energy Claims team of experts have a wealth of industry knowledge. They continue to put their collective expertise to good use by exposing those misleading and overcharging their customers as they make strides towards their goal of reconfiguring the energy market for a more transparent and ethical future.