The energy regulator has vowed to act against inflated business electricity deals
Business energy claims are becoming more commonplace among businesses of all sizes, as information comes to light regarding the rise of hidden business energy commissions, hidden fees, and mis sold energy contracts.
Now, energy regulator Ofgem has publicly stated its commitment to cracking down on “unscrupulous” UK energy brokers.
In a recent statement, Ofgem have made it clear that they will be acting against the overcharging of small businesses through inflated and often hidden commissions. High margins, large advances and unforgiving business energy rollover contracts have seen many businesses dragged to the brink of financial ruin, as a result of decades of bad practice from some brokers, suppliers and consultants.
While it must be said that there are many reputable brokers offering genuine value for money to business clients in the marketplace, the fact remains that a substantial number have been found to offer misguided advice, and unfavourable terms in relation to business gas and business electricity deals.
The only way to deal with this ongoing exploitation, according to Ofgem, is through legislation and regulation. For this reason, organisations like Winn Solicitors are making it their mission to help companies seek justice by lodging a mis sold business energy claim.
The need for effective business energy security
Unlike residential, individual and consumer energy contracts, business energy contracts are not regulated by Ofgem. So while consumers have the security of knowing that calls are recorded, agreements are clear, and the rules for fair treatment and pricing are in place, businesses have had no such safety net to date. This leaves them as obvious targets for those unethical brokers looking to exploit their clients and increase profits.
The negative impact of this hidden business energy commission is both real and clear. It has been estimated that organisations across the UK have been overpaying to the amount of hundreds of millions of pounds. In fact, Ofgem reports that businesses, charities and public bodies spend £25 billion per annum on energy, and a significant percentage of this is made up of the undisclosed fees that are devastating UK businesses year upon year.
As the business energy claims specialists at Winn Solicitors have found, instances of ethical broker behaviour and fair terms are disappointingly rare and that organisations can assume it to be “unlikely” that they won’t have been overcharged at some point.
In recent years, Winns has typically helped businesses to recover between 10% and 20% of their previous energy bills.
As part of their commitment to tackling mis sold business energy claim issues, Ofgem has shared plans to monitor brokers’ conduct more closely, outlining concrete responsibilities that energy suppliers must follow. This is designed to make sure that those selling business gas and business electricity deals are sharing all information with complete transparency, removing the opportunity to create costs that have been unfairly inflated.
The plans also include new responsibilities for suppliers to monitor the conduct of the brokers that sell their energy deals, promoting strong business energy security by making contract deals and commission fees completely visible.
This commitment by Ofgem confirms what many organisations have known for a long time: that there is a deep-rooted issue within the energy broker market that is exploiting businesses. For small organisations especially, a mis sold energy contract can mean the difference between success and failure as a business. This feels particularly pertinent in the wake of the COVID-19 pandemic, which has seen businesses of all sizes – and across all industries – struggle to stay afloat amid opening restrictions and ongoing uncertainty.
With Ofgem publicly denouncing the underhand tactics of energy brokers and sellers, businesses are one step closer to getting the justice they deserve when it comes to hidden business energy commission.
If you think that you’ve been victim to a mis sold business energy claim, the time to act is now. Get in touch with Winn Solicitors by visiting https://www.winnsolicitors.com/energy-mis-selling-claims