Is your business suffering from ever increasing energy costs. Have you used an energy broker to arrange your energy contracts? If so then there is a possibility you have been illegally charged undisclosed commission and could be entitled to reclaim substantial sums in compensation.

There are an estimated 3,000 energy brokers (also known as ‘third party intermediaries’ or ‘TPIs’) that assist businesses by arranging energy contracts with suppliers.

The regulator for the energy industry, OFGEM, has raised concern over evidence that that some brokers have recommended contracts that earn them favourable undisclosed commissions but do not present best value for the business concerned.

The commissions paid to the broker are often calculated in a way which is linked to the energy usage and simply added to the business bill without being explained. This means the longer the contract and the higher the usage the bigger the commission.

Depending on the legal relationship between your business and the broker you may be entitled to claim compensation from your broker or the energy supplier that paid it.

If you think that you might have been affected, please contact us for further information.

What is energy mis-selling?

The most typical type of energy mis-selling is when the broker failed to tell you the fee for arranging the contract. If your broker isn’t being transparent then it’s likely a good amount of your bill is going to the broker’s commission. This is often called a “service fee” or “introducer fee” and typically built into the unit price.

A broker should be working in their client’s best interest, and you should not be paying for a contract where the broker has financial motives when recommending a deal. As any commission or fee is paid directly to the broker from the supplier you may not be aware of the added cost of your contract.

I think I’ve been mis-sold an energy contract, what should I do?

Make sure you keep all your paperwork and any electronic communication that you think might be relevant.

Our experienced team will be able to advise you on the strength of your claim and handle all aspects of your complaint and any claim for compensation.

Strict time limits apply for bringing complaints, so if you believe that you have been mis-sold an energy contract, then you should make the complaint as soon as possible.

How much will I pay?

Our 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.

If the case does not proceed there will be no charge to you.

How will I be compensated?

Compensation usually takes the form of recovery of some or all of the money that you have lost. The amount of compensation you receive will depend on many factors.

If you think that you might have been affected, please contact us today.

Key contact

Neil Stockdale

Partner

Neil is head of the firm’s group actions and financial mis-selling teams, specialising in handling claims for financial mis-selling relating to energy contracts, pensions, investments and timeshares.