For many UK businesses, energy brokers serve as a vital link between them and their energy suppliers. However, this partnership might not always play out as transparently as expected with some business energy deals.
If you’ve engaged an energy broker, chances are they’ve potentially embedded undisclosed commissions within your energy contracts without full disclosure.
Failure by brokers to declare the commission they earn from arranging your business energy contract could be grounds for a mis-selling claim. Legally, brokers are obligated to be upfront about any commissions, as this can significantly affect the overall cost you end up paying for energy.
How do brokers conceal commissions in energy contracts?
They often do so by marking up the energy contract they’re selling to you. This additional margin isn’t always explicitly outlined, making it tricky for clients to pinpoint the broker’s commission separately from the energy cost.
Some brokers also resort to complex pricing structures, bundling various fees, incentives, and charges. These tactics make it challenging for clients to decode the actual contract cost and identify the broker’s commission.
Consider this scenario to grasp mis-selling:
The actual cost of your energy might be 30p/kWh, with an added 2p/kWh as the broker’s commission, totalling 32p/kWh—where the extra 2p/kWh goes straight to the broker’s pocket without clear disclosure to you.
Moreover, brokers might claim a service as free or claim a set fee from the energy supplier while actually pocketing a commission. This misinformation can lead to confusion and potential overpayment for your energy.
How can you detect if you’ve been mis-sold a business energy contract?
Here are red flags to watch for:
1. Unexplained bill hikes
2. Aggressive or deceptive sales tactics
3. Lack of transparency in contract explanation or provision
4. Attempts to halt claims by offering refunds in exchange for waivers
5. Poor customer service or unresponsive communication
6. High early termination fees not previously disclosed
The value of your claim depends on several factors, including the extent of mis-selling and financial losses incurred. Generally, you may recover financial losses and damages suffered due to the mis-selling.
Do you think you’ve been overpaying? Want to pay less and get the best tariff for your business?
Get started today, our team of Energy Switching Experts are ready to help you, you have nothing to lose and everything to gain.
All you need to do is click the Save Now button below and fill in the short form, they’ll then carry out a free health check and advise you of your options to switch & save. It’s as easy as that!