Do you know the true cost of your business energy?
If you have ever used an energy broker to find you the best deal for your business, you may be in for a surprise.
Energy brokers /consultants (also known as ‘third party intermediaries’ or ‘TPIs’) assist businesses by offering them gas and electricity contracts from energy suppliers.
Whilst not all TPIs are guilty of mis-selling, a large percentage make misleading statements about how they are paid, why they are recommending certain deals or suppliers, and this is often driven by financial motives meaning that clients’ needs are rarely the focus of the deal.
We’re here to disrupt the business energy market, help you make your business energy claim and recover your hidden commission – so, let’s get started.
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.
Here’s an example of how it works
Approximately 67% of UK companies use a broker for their energy deals. Here is their commission model:
Example: 2 year energy contract agreed, broker includes 1p per KWh in rate, annual consumption of energy was 512,091. Total commission paid to broker = £10,241.82.
Example: 5 year energy contract agreed, broker includes 0.40p per KWh into rates. Annual consumption is 716,082. Total commission payable £14,321.64.
These are the most common comments we receive around TPI mis-selling:
But my broker saved me money!
Why is the term of the contract so important?
Surely if this was the case the regulator would step in?
I’m sure that if they didn’t tell me how much they earned it wouldn’t be much anyway?
My financial director checked everything, there’s no way they could have been mis-sold to!
Brokers aren’t charities, they may not have told me about their commissions but I assume it’s there!
Our claims range from
£2,000 – £1,800,000