Experts are warning organisations to investigate the likelihood of hidden business energy commission

In the wake of an emerging mis sold energy contract scandal, commercial litigation lawyers and claims management specialists are issuing warnings to businesses of all sizes and industries to look into their agreements with energy brokers. Businesses all over the UK have fallen victim to business gas and business electricity deals that hide superfluous charges and costs in their details.

While residential and individual energy contracts have the safety net of being regulated by Ofgem, business energy security is essentially non-existent. This lack of regulation in the business energy sector has allowed for sharp and underhand practices to rise, including terms of service standards and charging. Increasing numbers of energy brokers have been found to deliberately mislead their clients, and provide insufficient information regarding business energy rollover contracts.

Once aware of the issue, many of companies are discovering their entitlement to make a claim against the energy brokers who have been profiting from hidden business energy commission.

Small and large businesses alike can benefit from making a claim

As malpractice and unethical behaviour from energy brokers comes to light, the need for business energy security has become a major focus for energy regulator, Ofgem, in recent months. And as a growing number of businesses succeed in pursuing claims against their brokers – recouping anything from a few thousand pounds to over a million – experts are encouraging all organisations to scrutinise their agreements more closely. In fact, any business using gas and electricity may be eligible to pursue a mis sold business energy claim.

Winn Solicitors, are one of the leading claims management specialists in this emerging field. They are supporting businesses to escape bad business energy rollover contracts, and succeed in pursuing substantial business energy claims.

There are many brokers acting as Third Party Introducers – or TPIs – out there on the market, which in itself is not controversial. But because these brokers aren’t limited by regulations, there are few rules in place to ensure that they are working to the high standards one would expect from an organisation working in the utilities sector.

As such, they may not explain how their commission is calculated, and they’re not obliged to inform their customers that their unit charge will increase by the amount of the commission. In many instances, brokers are adding significant commission to customers’ bills, and these customers have no idea they’re paying it.

Energy brokers aren’t being upfront about their business energy rollover contracts, resulting in millions of pounds in compensation being due

While some energy brokers are clear and transparent about their charges, giving customers the option to pay upfront or pay consumption-based commission, this is often not the case. Many brokers have been found to be failing to inform customers in correspondence of any kind, including over the phone, in their terms, and even in their website small print.

It’s now more important than ever that energy customers ask themselves what they know about commission payments, questioning whether they have given their informed consent. As an energy broker is essentially an agent, they owe their clients a duty of care when making introductions to suppliers – particularly in relation to commission and contract terms.

Understanding business energy claims and business energy security

According to Winn Solicitors, the chances of not being entitled to a claim from your energy broker is “unlikely”. The scale of this issue is astounding, so it’s important that organisations ask themselves the right questions when considering making a claim. Ask yourself, do you know:

  • The commission paid to your broker
  • How this commission is calculated
  • The nature of the broker’s relationship with the supplier
  • The commission rate
  • Whether the broker has a vested interest in encouraging you to switch contracts
  • Whether the broker is incentivised to recommend a longer contract
  • Whether you can achieve a better price directly or through another broker

If you aren’t sure of any of this information, it suggests that clear and transparent details have not been given by your energy broker or supplier. Therefore, you could be entitled to make a claim regarding your mis sold energy contract.

If you think that you may have been mis sold a business energy contract, get in touch with Winn Solicitors today by visiting