Business Energy Broker Claims for Compensation

In recent years, concerns about business energy rates have focused on issues of price transparency and the commissions earned by brokers. These brokers act as third-party intermediaries between businesses and energy suppliers, receiving various rates from different energy companies, which they then offer to businesses. However, in some cases, brokers add a mark-up to these rates as their commission, which becomes the rate that the business ultimately pays.

If a broker has not clearly disclosed the commission rates they were receiving and has kept them ‘hidden,’ it is likely that they were charging a mark-up without your explicit knowledge. In such a case, you may have grounds for a mis-selling claim.

At Expert Commercial Law, we maintain a panel of commercial solicitors. If you would like more information on business energy broker claims, then please get in touch with us today. 

What is business energy broker mis-selling?

Business energy broker mis-selling occurs when a broker provides misleading or incomplete information to a business regarding energy contracts, often resulting in the business agreeing to unfavourable terms without fully understanding the costs involved. This can include a range of deceptive practices, such as:

1. Hidden commissions: Brokers may fail to disclose the commission they are earning from energy suppliers, often by adding a mark-up to the rates offered. Businesses may believe they are getting the best available deal when, in fact, they are paying more due to undisclosed broker fees.
2. Misrepresentation of rates: Brokers might present energy rates as being competitive or exclusive when, in reality, they are inflated or not the most cost-effective option available.
3. Excluding critical information: Important details, such as the length of the gas and electricity contract, termination fees, or changes in rates over time, may be deliberately left out or downplayed.
4. Pressure tactics: Some brokers might use high-pressure sales tactics to rush businesses into signing contracts without giving them sufficient time to review the terms or explore other options.
5. False claims: Brokers may make false claims about the benefits of switching suppliers or the savings a business will achieve on energy bills, leading to financial losses when those promises are not met.

When a business falls victim to these practices, it can result in paying significantly more due to undisclosed commission, being locked into unfavourable contracts, or facing unexpected costs. 

What should I do if I believe I have a business energy broker claim?

Whether you believe you have been mis-sold a business energy contract or a contract for personal use, you may be entitled to compensation if you make a claim for a mis-sold energy contract. You should try to ensure that you keep all records and receipts of any correspondence with the energy broker that you used. Clearly identify the specific issue, whether it is misrepresentation, hidden costs, pressure tactics, or other deceptive practices.

You should then think about hiring a specialist solicitor to handle your case. Our team at Expert Commercial Law can put you in touch with an experienced solicitor who deals with business energy broker claims. Services are generally offered on a no win no fee basis, meaning you do not need to worry about the costs of making a business energy claim when seeking compensation. 

Recent hidden commission claims cases

 Several recent cases involving business energy claims have brought attention to the issue of undisclosed energy commissions:

Energy Company X v. Consumer Y (2022):
In this case, Consumer Y discovered a hidden commission included in their energy bill by Energy Company X. The court ruled in favour of Consumer Y, finding that Energy Company X had violated the Consumer Rights Act 2015 by failing to disclose the commission.

Broker A v. Business B (2023):
Business B filed a claim against Broker A for not revealing a significant commission included in their energy contract. The court concluded that Broker A had breached FCA regulations by not acting in the best interest of Business B and ordered the refund of the undisclosed commission.

Engie v. Business Client (2023):
In this case, Engie, represented by its solicitor, successfully defended against a claim regarding undisclosed commission amounts. The court ruled that while the exact commission amount was not disclosed, the broker’s terms and conditions mentioned the possibility of commission payments, making the arrangement “half secret.”

These cases demonstrate the courts’ readiness to protect consumers and businesses from unfair practices involving undisclosed energy commissions.

Why choose Expert Commercial Law?

At Expert Commercial Law, we have a panel of law firms who help both small and large business owners to pursue business energy broker claims. We understand that when an energy broker mis-sells a contract to your business it can have a significant impact. Contact us today for free of charge to find out if you could be eligible to make a claim.

We are not a firm of solicitors; however, we have a panel of commercial law solicitors who are authorised and regulated by the Solicitors Regulation Authority. If you contact us in relation to a commercial law case, we will pass your case onto a panel firm.

Our solicitors can also help with a number of other commercial claims, such as partnership disputes, breach of contract and CCJ removal.