Business Energy Claims: Are you Entitled to Compensation?

Business energy claims

Knowing your consumer rights about energy services is vital in a time when transparency and fairness in business are important.

Consumers should receive clear and truthful information about prices, tariffs, and commissions from energy providers like gas and electricity companies.

In 2020, Ofgem found that small businesses were often being tricked into buying bad energy contracts by brokers and third party intermediaries (TPIS).

The regulatory body found cases of brokers and intermediaries mis-selling business energy in the industry. This misconduct predominantly stemmed from a lack of transparency due to financial motives, which included:

  • Providing only a single business energy deal to clients, despite promising a comprehensive comparison of the entire market.
  • Ensnaring customers in long term contracts without adequately clarifying the contract’s duration at the time of purchase.
  • The company hides high commission fees in the contract without informing the customer or including it in the contract. These fees can amount to up to 50% of the customer’s energy costs.

As a consequence, there has been a notable increase in legal firms willing to explore the possibility of pursuing business energy claims for those who suspect they have been subjected to mis-sold contracts.

Business energy claims and entitlement to compensation

A business can receive compensation for a business energy claim if there are issues with their energy services. These issues can include mistakes or unfair practices. Here are some common scenarios in which a business might be eligible for compensation:

  • Misrepresentation or mis-selling: If an energy supplier provides misleading or inaccurate information about pricing, tariffs, energy contract terms, or potential savings, and this leads the business to make decisions that result in financial harm, the business could have a claim for compensation.
  • Undisclosed or hidden commissions: Many energy brokers receive commissions, which are often built into the unit price for your business energy. If the energy broker and supplier fails to disclose commissions, fees, or hidden charges that affect the business’s energy costs, and this lack of transparency results in overpayment, the business may have grounds for compensation due to undisclosed commission.
  • Billing errors: If the business identifies errors in their energy bills, such as incorrect meter readings, tariff rates, or usage calculations, and these errors lead to overcharges or financial losses, they may be entitled to compensation for the overpaid amount.
  • Unfair contract terms: If a business is subjected to unfair or unreasonable business energy contract terms, leading to financial detriment or disadvantage, they might have a valid claim for compensation.
  • Failure to deliver promised services: If the energy supplier fails to provide the agreed-upon energy services, such as consistent supply, timely installations, or adequate customer support, and this failure causes financial losses or disruptions to the business, compensation could be pursued.
  • Metering and measurement issues: If there are inaccuracies in meter readings or measurement of energy consumption, resulting in overcharges or billing discrepancies, the affected business could seek compensation for the incorrect charges.
  • Interruptions and outages: In cases where the energy supply is interrupted or there are frequent outages due to factors within the energy supplier’s control, leading to disruptions in the business’s operations and financial losses, compensation might be warranted.

It’s important to note that each case is unique, and the eligibility for compensation depends on the specific circumstances and applicable laws and regulations in your jurisdiction. If your business believes it has a valid claim for compensation related to a business energy claim, it’s advisable to seek legal advice and consult with relevant consumer protection or regulatory authorities to understand your rights and options.

How our panel of solicitors can help

A business energy claims solicitor from our panel can play a crucial role in assisting your business. Most of our solicitors work on a no win no fee basis and can help in the following ways:

  • Legal Assessment: A solicitor can review the specifics of your situation and assess the validity of your business energy claim. They will examine contracts, documents, and evidence to determine whether there are grounds for pursuing a claim.
  • Expertise in Energy Regulations: Energy markets and regulations can be complex. A solicitor experienced in energy law will understand the intricacies of industry regulations, ensuring that your claim is based on accurate legal principles.
  • Negotiation and Settlement: A solicitor can negotiate with an energy broker and supplier on your behalf. They can advocate for your rights and work towards a resolution that compensates you appropriately.
  • Gathering Evidence: A solicitor can assist in gathering relevant evidence to support your claim. This might include analysing energy bills, contracts, communications, and other documents that strengthen your case.
  • Representation in Legal Proceedings: In cases where negotiations don’t yield a satisfactory outcome, a solicitor can represent you in legal proceedings, such as arbitration, mediation, or litigation. They will advocate for your interests in court if necessary.
  • Maximising Compensation: A solicitor’s expertise can help ensure that you receive the maximum compensation to which you are entitled. They can calculate damages accurately and account for various factors that might impact your claim.

Contact us today to find out if you could be eligible to make a business energy 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 disputesbreach of contract and CCJ removal.

 

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Please note, we are not a firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a commercial law case, we will pass your case onto a panel firm in return for a fee from our panel firms. We will never charge you for passing on your case to a panel firm. 

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