Skip to main content

Business Energy Claims. Are you a business that used an Energy Broker to save money? You may have been mis-sold a business energy contract.

Rather than saving you money, it may have cost you money and you may be entitled to compensation for a mis-sold business energy contract by the energy broker. Much like using a trusted insurance broker, many businesses have relied on energy brokers to try and save money on their gas and electricity bills. During this process energy brokers will often say that their services are free to their business customers, so using them appears to make perfect sense.

TLW Solicitors are specialists in financial mis-selling claims. We are a law firm, not intermediaries, so we will deal with your claim from start to finish. To check if you are eligible for a business energy mis-selling compensation claim, speak to us today by filling out the form below.

 

What the business energy broker may not have explained is that they will have received a hidden commission from the energy provider based on how much your business pays for its energy. As a result, many brokers inflated the cost of energy in order to make bigger commissions and in turn, the customer probably paid more in their energy bills than they should have.


How do I know if I have been mis-sold a business energy contract?

When signing a business up, the energy broker should have explained how much commission they were getting from the energy company. As a broker, and so an agent of the business, their job is to act in their customer’s best interests by finding and recommending the best deal for them, rather than recommending the energy provider with the best commission for the broker.

If you were not told by the broker how much commission they were going to receive for placing you with a particular supplier (also known as a ‘secret’ or ‘hidden’ commission) or the broker did not seek out the best deal for you, rather they sought the best deal for them, then you may be entitled to compensation.


Protecting businesses from unscrupulous energy brokers

To combat this unfairness to businesses, energy consumer watchdog, Ofgem has introduced a range of measures aimed at protecting business energy customers from ‘unscrupulous brokers’. When launching the initiative, Ofgem said:

‘Two out of three micro-businesses use an energy broker when choosing their current energy contract and many of them benefit from the advice of a reputable broker. However, an Ofgem review found that in too many cases, microbusinesses are hampered by a lack of transparency when using brokerage services and end up being locked into poor value deals because they are not fully aware of what they are signing up to.

Ofgem found that a small number of micro-businesses were paying thousands more than they needed to in broker commission charges. These proposals will help all those using a broker to get value for money when using brokerage services.’


What is a ‘secret/hidden’ commission?

This is where the energy broker recommends a provider but does not tell the business customer how much commission they are getting for it. They also fail to explain that the energy price has been inflated so they can make a bigger commission.

Because of the high risk of there being a conflict of interest (the higher the energy payments, the higher the commission for the energy broker), and to ensure full transparency for their protection, the extent of this commission should be explained to the customer by the broker. If the commission has not been explained, then the customer may be able to claim compensation for mis-sold business energy.


TLW Solicitors can help

If you thought you were saving your business money by using an energy broker, and you were not told about any commission they were getting from the deal, then you may be able to claim compensation for business energy mis-selling.

We are an established firm of solicitors with many years of experience in successfully winning cases for our clients, we are not intermediaries, which means that your case will always be dealt with from start to finish by our team. Get in touch with our specialist financial mis-selling lawyers for a free no-obligation discussion about making a claim.

Call 0800 169 5925, email info@tlwsolicitors.co.uk or complete the call back form below.

Time limits can apply and so anyone wishing to bring a claim should do so without delay.

For added TLC, think TLW Solicitors.

Business Energy Broker Compensation FAQ's

Warning signs of potential business energy mis-selling include:

  • The broker did not give you information about any commission that they were getting from the energy supplier for recommending them. This is known as ‘secret’ or ‘hidden’ commission.
  • The broker gave the impression during the sales process that their services would not cost you anything – when in fact, they were making money from the undisclosed commission as a result of you paying higher prices.
  • The broker signed your energy contracts on your behalf.
  • The broker gave you only a very brief run through the terms and conditions of the contract with the energy supplier and you did not really understand it.
  • The broker persuaded you to enter into a longer-term energy contract than you felt was necessary for your business – in turn, enabling them to earn more commission.
  • The business energy broker pressured you to sign up to the energy provider they were recommending rather than encouraging you to shop around or giving you a range of alternative providers.

The term ‘energy broker’ is very wide. Descriptions can include energy advisers or energy consultants and can even cover some energy price comparison or energy supply switching websites. The technical term is a Third Party Intermediary or TPI. Worryingly, unlike for individual consumers, there is very little statutory protection for businesses that deal with TPIs.

If you think that you have been the victim of business energy mis-selling, then get in touch with one of our specialist lawyers by phone on 0800 169 5925, by email to info@tlwsolicitors.co.uk, or use the call back form below.

One of our team will then go through your case and explore your options in a free, no-obligation discussion. We will contact the energy provider and get all the relevant documents and contracts on your behalf to see if you have a claim and if so, what it might be worth. We can still investigate your claim even if you no longer have the relevant paperwork.

Yes. If you are worried about the interruption of energy services during the claims process, we can liaise with the providers and we will never start any action unless we have your agreement first. Sometimes we can simply negotiate for the contract to remove the disputed amount, saving you money on the bill, start a new contract or move you to a new supplier.

This depends on many factors including the duration and value of the energy contract, how long ago you entered into the contract and the commission arrangements. TLW Solicitors deal with cases ranging from thousands of pounds to tens of thousands of pounds. If you think that you have been mis-sold business energy by an energy broker, get in touch with our team and we can discuss your claim and what it might be worth.

This varies from claim to claim. If the broker and/or the energy company accepts responsibility for the alleged energy mis-selling and agrees to put things right, then a compensation claim can take just a few months. If the allegations are disputed, then the claim may have to go to court to be resolved.

If starting court proceedings is the best option, then that could take somewhere between 12 and 18 months, sometimes much longer depending on the attitude of the other side and the complexity of the case. TLW are a longstanding firm of experienced litigation solicitors, so we will do all that we can to progress your claim.

Once our team of specialist financial mis-selling lawyers has reviewed your potential case and if we feel it suitable, then we will enter into a no-win-no-fee agreement. That means, if the case is unsuccessful, we will not charge for the time we have spent on the case.

‘Secret’ or ‘hidden’ commission energy mis-selling claims can be very complex. Our team of specialist lawyers has many years experience of dealing with a wide range of mis-selling cases. They are also very experienced in taking cases to court if necessary, to ensure that clients get the compensation they are owed.

We are an established firm of solicitors with many years of experience in successfully winning cases for our clients, we are not intermediaries, which means that your case will be dealt with from start to finish by our team.

Make an enquiry