Uncovering Hidden Commissions: UK Businesses Seek Compensation for Mis-sold Energy Contracts

An energy broker serves as an intermediary between UK business owners and energy suppliers, facilitating the acquisition of the best possible deals while ensuring the provision of high-quality energy. This service is highly valuable and widely recognised as essential, with countless business owners relying on brokers to negotiate on their behalf.

Over the past few years, small businesses have taken legal action against major energy corporations, potentially resulting in compensation worth billions of pounds from companies like EDF, Shell, and British Gas.

The focal point of these claims revolves around energy brokers who have been making deals with energy companies, receiving undisclosed commissions without their clients’ knowledge. In October 2022, Ofgem, the energy regulator, took decisive action by closing the loophole that allowed such practices to persist.

Under the new mandate from the industry regulator, all energy brokers are now required to declare any commissions received from clients operating within “micro-businesses.” This declaration must be explicitly included in their business energy contracts, ensuring transparency.

It has come to light that UK business owners who have utilised the services of an energy broker may have had undisclosed commissions added to their energy contracts without their awareness.

Business Energy Claims has conducted interviews with numerous businesses that have faced similar situations. The majority of these businesses, more than 90%, have employed the services of an energy broker. The average compensation claim stands at over £25,000, and some businesses may even be eligible for multi million-pound settlements. Business Energy Claims estimates that at least 2 million businesses in the UK are entitled to compensation.

How much is my business energy claim worth?

The amount of compensation you receive for your business energy claim will depend on several factors. The average claim considers various elements, including the specifics of your case, the extent of mis-selling, and the financial impact incurred. These factors enable us to determine the best course of action for your situation.

If you have been misled into purchasing an energy contract under false pretences, you might be eligible for compensation. Such compensation could cover reimbursement for any losses suffered and potentially extend to other adverse effects, such as stress or damage to your company’s reputation.

To obtain an estimate of your claim value, we offer a free and user-friendly claim calculator.

How to initiate a claim?

To pursue compensation, please reach out to us so that we can assess whether any commission has been disclosed within your contract.

Kindly provide us with details about your energy supply, including the unique MPAN or MPRN, the name of the energy supplier, and the contract start and end dates. Additionally, include information about the type of meter you have, along with the current unit rates and standing charges.

You can file claims for business energy contracts, regardless of whether they are ongoing or from the past. Therefore, if you have previously experienced mis-selling, it is advisable to explore the available options.

Taking action is crucial if you suspect that you have been mis-sold a business energy contract. Doing so may lead to compensation or reduced energy bills.

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