Did you know that you may have been mis-sold to and have an energy claim?
Have you used an energy broker or consultant to source your energy contracts in the last six years?
Do you pay a fee or an invoice to your energy broker?
Take a look at our infographic by clicking the button below to learn how to know if your business has a business energy claim:
View infographic
What is an energy broker?
Energy brokers / consultants (also known as ‘third party intermediaries’ or ‘TPIs’) assist businesses by offering them gas and electricity contracts from energy suppliers.
Did you know?
- There are over 2000 energy brokers (TPIs) in the UK.
- 42% to OFGEM about mis-selling contained references of broker behaviour.
- We believe 60-70% of UK companies use TPIs.
Lack of regulation means some brokers are inflating the cost of their energy without disclosing this to their customers, costing UK businesses £500m per year.
What is the problem with TPIs?
Energy brokers have various different ways in which they charge businesses for their services. Therefore, many businesses are either unsure about what they’ve been charged or, in some cases, don’t think they’ve been charged at all.
How do brokers get paid?
Most brokers operate one of the following ways of earning their fees:
- The client agrees a fee with the broker for service, client pays broker their fees. This could also be a percentage of a saving made for the client.
- The broker adds a margin to your energy price, meaning for every unit of energy you use during the contract, they are being paid. This can be very lucrative, and the bigger the consumption or duration the more the broker is making.
Who might have an energy claim?
If you’ve used a broker / consultant and any of the following applies to you then you may have been mis-sold to:
- Don’t know or weren’t told what the TPI made for arranging your contracts.
- The TPI pushed a long-term contract.
- Were told it was a free service or the supplier pays their commission.
This widespread mis-selling and lack of transparency is the energy industry’s worst kept secret and we expect a significant number of claims by businesses seeking compensation.
It affects large corporate companies all the way down to sole traders, we have evidence of all sizes of business being either miss-sold and/or being the subject of hidden commission.
Surely brokers have to make money somehow?
We totally agree, and most people think that brokers make a modest amount for the work they do. However, our experience to date shows that brokers are often making very significantly more than businesses think.
Does my business have an energy claim?
We offer a free, no-obligation review of your business’ energy contracts to identify the hallmarks of mis-selling and ascertain whether you have a valid claim.
We work with our expert panel law firm [Energy Solicitors ltd.; SRA no. 8000596] to help businesses to recover hidden commissions and losses from the mis-selling of energy contracts. Start your claim today.
