New energy cap announced! What does that mean for your business?
The rising cost of business energy is a significant concern for many companies, particularly those that are struggling to manage their energy costs. In recent months, electricity and gas prices have been offered at higher rates than the price cap for domestic customers, leaving businesses exposed to increasing costs and limited protection. As it was announced on 27th of February 2023, the domestic price cap has been lowered. This is a great sign for the fuel prices going down, but yet again the government has failed to address the issue that many businesses are facing. As an SME, managing your energy costs can be a significant challenge, particularly when energy prices continue to rise. Electricity and gas rates are still being charged at significantly higher rates than they were just 18 months ago, which can have a significant impact on your business’s bottom line.
The high cost of energy is a particular concern for SMEs, who may have limited resources to manage their energy costs or may not have the expertise to navigate the complex energy market. And as our experience proves it, the energy market is filled with unethical brokers that are looking to gain as much commission as possible from their customers. This has been a real eye opener for a lot of our customers. However, it’s important to be aware that as a business energy customer, you may have a claim for mis-sold energy contracts.
Many businesses have entered into contracts in recent months that are not protected by a reduced protection rate, leaving them vulnerable to high energy costs. This means that if you have signed up for an energy contract that you were not made fully aware of the terms or if you were misled about the prices or benefits of the contract, or made aware of the amount of commissions that the broker is getting, you may be entitled to a claim.
One of the biggest challenges for SMEs is understanding the energy market and finding the best possible deal on their energy rates. This can be particularly difficult in a market where prices are constantly changing and energy suppliers are offering a wide range of products and services. To help address this challenge, many SMEs are turning to energy brokers. An energy broker is a specialist, who should work on behalf of businesses to help them find the best possible deal on their energy rates. Unfortunately, the market has been shifting to the side where brokers are putting the suppliers interest (commissions) ahead of their clients.
By taking the time to explore your options, you may be able to find a better deal on your energy rates, which could save your business a significant amount of money in the long run.
Many energy suppliers now offer fixed-rate contracts for both electricity and gas, which can provide businesses with greater certainty over their energy costs and protection from price fluctuations. Nonetheless, this does not protect them from predatory brokers. Most of the fixed rate contracts come with commissions calculated into your cost and never explained to the business.
If you believe that you may have a claim for mis-sold energy contracts, it’s important to seek advice and support. Business Energy Claims can help you to navigate the complex wording of your contract and expose your broker to unethical behaviour. We can also help you to understand your rights as a business energy customer and ensure that you receive the compensation you are entitled to if you have been mis-sold an energy contract.
The high cost of energy remains a significant challenge for SMEs, however most of the companies don’t realise that their broker never acted in good faith with the customer and was protecting his own interest, and arctic in favour of the supplier. If you believe that you may have been mis-sold an energy contract, it’s important to seek advice and support to ensure that you receive the compensation you are entitled.