MIS-SOLD BUSINESS ENERGY
Historically, many businesses in the UK utilised the services of an energy broker or third-party intermediary (TPI) to secure a “suitable” gas and/or electricity contract.
If this has been the case for you and your business, then it is reasonable to consider that you may have been charged hidden or secret commissions that were built into your energy contract.
OFGEM, the regulator of the energy industry in the UK, raised awareness in relation to evidence that they reviewed that suggested that a high percentage of energy brokers/TPIs had recommended energy contracts that earned that undisclosed or secret commissions. The recommended contracts were not in the best interests of those businesses involved; they were sold as being the most competitive prices available at the time. However, the majority of businesses were paying over inflated prices.
THE HIDDEN COMMISSION
The hidden or secret commission was most commonly connected to the business’s energy usage, so the higher the usage of energy and the longer the contract, the higher the sums of hidden commissions were being paid to the energy brokers.
When an energy broker adds a commission onto an energy contract in addition to the energy supplier’s base unit rate price, the broker and the supplier must legally disclose the quantum of commission being paid in pounds and pence. A simple generic statement will not suffice. The disclosure must be open and honest and the business (you) must give their informed consent to the energy broker and supplier.
If you think that you have been mis-sold a business energy contract then please contact our Business Energy Mis-Selling team today. Our expert legal team will advise you on the validity of a potential claim. You can make a claim against both an existing energy contract and / or a previous contract providing that sufficient evidence can be supplied.
WHAT WE REQUIRE
In order to verify a potential claim, we require copies of the following documents:
- Energy broker Letter of authority and/or email/letter confirming broker details
- Copy of energy contract(s)
- Copies of as many bills/invoices a possible (allows us to calculate the claim value as accurately as possible)
We operate on a no win-no fee basis, an initial assessment to substantiate your claim will be carried out free of charge.
If your claim is successful, compensation typically involves the return of some or all of the money that was paid in hidden commissions. The quantum of compensation that you may receive is dependant on a number of factors.