BUSINESS ENERGY - WHY YOU NEED TO CLAIM!

Over the last decade, businesses have been overcharged for the energy they use. If you used an energy broker to secure the best deal for your business energy contracts, there is a high chance that you may have been charged an undisclosed commission. This means that you could be entitled to a significant amount of compensation.

When managing your business overheads, it is crucial to find the best deal for your gas and electricity. One way to do this is by engaging an energy broker or consultant. These brokers negotiate with energy providers directly on your behalf, with the aim of securing you a better contract than you could get by approaching the supplier yourself. The idea is to save you both time and money.

There are around 3,000 energy brokers, also known as 'third party intermediaries' or 'TPIs', who assist businesses in arranging energy contracts with suppliers. These brokers earn their commission by sourcing you the “best deal” for your business energy.

However, following an investigation into energy brokers in 2020, the Office of Gas and Electricity Markets (OFGEM) discovered that businesses were frequently being mis-sold business energy contracts. The main issue was the lack of transparency in the process. OFGEM identified several scenarios where business energy was potentially being mis-sold, such as only offering one business energy deal after promising to conduct a full-market review, locking businesses into lengthy multi-year contracts without disclosing the details at the point of sale, and hiding commission fees in the contract without revealing the cost at the point of sale or documenting it in the contract itself.

The primary concern at OFGEM was that some brokers may have recommended contracts that benefited them instead of representing the best interest of their clients. This often results in businesses being overcharged, while the broker earns significant amounts of commission. Typically, the commission is added to the unit price charged by the energy supplier, which can be much higher than it should be. This means that the commission paid is linked to the energy usage and added to the business bill without explanation. This means that the longer the contract and the higher the usage, the more commission the broker receives. As any commission or fee, this is paid directly to the broker from the supplier, and you may not be aware of the added cost of your contract.

A broker should work in their client’s best interest, as they are in a position of trust. A broker is a "fiduciary" and has a legal duty to ensure that their client’s interests do not conflict with their own. You should not be paying for a contract where the broker's primary motive is their financial gain, and they have not disclosed this information to you.

If your energy broker or consultant failed to provide you with full written disclosure of how much they earned from your contract, including any commission or fees they received from the supplier for recommending you as a customer, whether that is a one-off charge or an ongoing cost, then they have not disclosed important information to you regarding the contract. Some of this information may have been hidden but still applied to your contract. If your broker has not been transparent, then it is likely that a significant portion of your bill is going towards the broker as commission.

HT Legal can help you determine if your energy contract was mis-sold before pursuing a claim. If you give them permission to act on your behalf, they will contact your energy broker and supplier to collect and assess the information relevant to your claim. Their specialist team can represent you on a no-win, no-fee basis, and all initial work to assess the claim will be carried out free of charge.

Compensation usually involves recovering some or all of the money that you have lost due to hidden commission information. The compensation you receive will depend on the specifics of your individual claim.

If you suspect that your business energy contract was mis-sold, it is important to take action as soon as possible. You may be entitled to compensation, but strict time limits apply for bringing complaints.

At HT Legal, our specialist team can help you assess whether your contract was mis-sold and represent you in making a claim. We work on a no-win, no-fee basis, and all initial work to assess the claim will be carried out free of charge.

To assess whether you have a claim, we will need certain information from you, including your business energy contract agreement date, start and end dates, the unit cost per kilowatt hour of your gas and electricity, the name of your business energy supplier and broker, and your business details, including a number of meters, estimated annual gas or electricity usage, distributor ID, and the profile code or class of your electricity meter.

If your claim is successful, you may be entitled to recover some or all of the money that you have lost due to the commission information being hidden. The amount of compensation you receive will depend on the specifics of your individual claim.

In conclusion, many businesses have been mis-sold energy contracts by brokers who prioritize their own financial motives over the best interests of their clients. If you suspect that your business energy contract was mis-sold, you may be entitled to compensation.

Contact HT Legal today to find out how we can help you make a claim on a no win, no fee basis.