Hidden Commission Energy Claim: Undisclosed Commission

What is hidden commission?

Hidden commission refers to undisclosed or secret payments, rebates, or commissions that are received by a party involved in a transaction. Hidden commissions are particularly prominent in the commercial sector. These payments are often not disclosed to the client or customer. They can create conflicts of interest and undermine the transparency and fairness of the transaction.

Hidden commission can often occur in industries where intermediaries or agents are involved in transactions. These may include real estate, gas and electricity, and procurement. If an agent receives a commission or payment from a supplier or service provider without disclosing it to the client, it can raise concerns about the agent’s loyalty and the potential impact on the client’s decision-making process.

The Consumer Rights Act 2015 includes provisions that require transparency in business-to-consumer transactions. This ensures consumers are provided with clear information about the price and terms of products and services.

Overall, undisclosed commission is seen as a potential conflict of interest that can undermine the integrity of transactions and erode trust between parties.

Full and transparent disclosure of any commissions or payments is essential to ensure that clients and customers can provide informed consent and have confidence in the fairness of the transaction.

What is a hidden commission energy claim?

Commission is very common in the energy market as energy companies often rely on brokers to get their clients.

The term “hidden commission” generally refers to undisclosed or non-transparent fees, charges, or compensation arrangements that are included in the terms of the contract between an energy supplier and a consumer or business.

These undisclosed fees or commissions can potentially lead to higher energy costs or a longer term contract for the consumer without their full awareness.

Energy contracts involve the supply of gas, electricity, or other forms of energy to consumers or businesses. These contracts can be complex, and the terms and conditions can vary widely between different energy suppliers. Secret commissions in energy contracts can take several forms:

Energy broker commissions:

In some cases, energy suppliers may work with brokers who help connect them with potential customers. Brokers might receive commissions or fees from energy suppliers for bringing in new customers. In some circumstances, energy brokers have been accused of attempting to get the highest amount of commission possible, rather than getting the best deal for the customer.

If details of the broker receiving commissions are not clearly disclosed to the customer, it can lead to a lack of transparency about the true costs of the energy supply.

Third-party charges:

Some gas or electricity contracts might include charges related to third-party services, such as meter readings, maintenance, or other administrative tasks.

These charges should be clearly outlined in the contract, but if they are not disclosed or explained adequately, they can be seen as hidden commissions that increase the overall cost to the consumer.

Add-on services:

Energy contracts could offer additional services, such as energy efficiency assessments, which might come with additional charges. If these charges are not clearly communicated to the customer, it could be considered a form of mis selling or hidden commission.

Markup on Wholesale Prices:

Energy suppliers purchase energy on the wholesale market, and they may pass on the costs to consumers along with an added margin. If the margin or markup is not transparently disclosed, consumers may not fully understand how much of their bill is related to the actual cost of energy.

Inaccurate Billing:

Errors or discrepancies in billing can sometimes lead to customers being charged more than they should be. While not necessarily intentional hidden commissions, these errors can still result in consumers paying more than they should.

Consumers have the right to understand what they are paying for and to receive accurate billing information. If this is not the case, you may be entitled to make a hidden commission claim.

Hidden Commission Energy Claim Payouts

If you have purchased an energy contract through misleading circumstances, you may be able to make an energy commission claim.

This compensation could include reimbursement for incurred losses and potentially extend to include other negative consequences, including stress or harm to your business’s reputation.

It can be difficult to estimate how much compensation you could receive for an hidden commission energy claim. The potential value of claims varies based on your energy consumption, ranging from £1,000 to £500,000. An average claim may be worth around £25,000, with some business energy claims being valued at over £1 million.

How to claim

To initiate the process of making a claim, we encourage you to get in touch with us. Our team will thoroughly assess your contract to determine if any undisclosed commission exists. If we think you have a case, we will pass your claim onto one of the solicitors on our panel.

Please provide us with essential details concerning your energy supply, such as the unique MPAN or MPRN, the energy supplier’s name, and the dates marking the initiation and conclusion of your contract. Additionally, provide information about your meter type, the prevailing unit rates, and the standing charges.

Why choose Expert Commercial Law?

Expert Commercial Law provide an introducer service to hidden commission energy claimants. We have a panel of law firms and all solicitors on our panel are authorised and regulated by the Solicitors Regulation Authority.

The majority of our hidden commission energy claim solicitors will deal with your case on a no win, no fee basis (conditional fee agreement).

As well as assisting the general public, our panel firms also help small business and large business owners to pursue claims for hidden commissions in business energy contracts.

Contact us today to find out if you could be eligible to make a hidden commission 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 disputes, breach of contract and CCJ removal.