Major UK energy providers, including British Gas and SSE, are currently confronting significant legal challenges, as they face millions in claims related to the mis-selling of energy. Allegations suggest that these companies have been unjustly inflating business energy bills by covertly compensating brokers through undisclosed commissions.
What is mis-sold energy?
About 7 out of 10 UK businesses, engage brokers for negotiating energy contracts without realizing they aren’t directly interacting with energy suppliers. Consequently, businesses find themselves victims of mis-sold energy. In some instances the commissions paid by businesses reached up to 50% of the entire energy contract.
Legal experts equate these commissions to bribes. Arguing that they compromise the integrity of brokers who are obligated to offer unbiased recommendations to businesses. In response to the magnitude of this issue, Ofgem plans to initiate a call for evidence in the coming months to assess the extent of mis-selling within the energy market.
A law firm has taken action by launching a collective claim against major energy suppliers, estimating an average claim value of around £60,000 per company. Therefore, businesses suspecting they were victims of mis-sold energy are advised to commence their claims promptly.
How to know if your business has been mis-sold energy?
To determine if your business has been subject to mis-selling:
- Review your energy contract for any concealed fees, such as undisclosed commissions.
- Assess whether the energy broker accurately represented their relationship with the energy supplier or provided misleading information.
- Verify if your broker followed proper procedures to secure the best deal for you.
- Scrutinize for any disparities between the terms of your energy contract and the received energy bills.
For those seeking to claim, firms like Assured Claims are collaborating with experts to assist businesses in reclaiming funds for mis-sold energy. Initiate your claim today for a prompt resolution.