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Business Energy Claims Scandal Reported by The Times Newspaper Headline

Have you used an energy broker?

Are you aware of the current & growing scandal around the mis-selling of energy contracts?
We have helped businesses entitled to a refund reclaim on average £25,000.
Calculate your reclaim now »

21st July 2024

Your business could recover funds owing to wrongly sold energy contracts.

Businesses have claimed £1000's for mis-sold energy contracts.

Find out if your business qualifies for energy refunds.

Average business energy claim is currently £25k+

Helpline: 0333 344 8191

Helpline: 0333 344 8191

Average business energy claim is currently £25k+

How it works, here's an example:

Our average claim looks a little like this:

Contract 1: Gas Contract Length: 2 Years Energy Broker Rate (Uplift): 1 p/kWh Annual Consumption: 523,151 Energy Broker Commission: £10,463.02

Contract 2: Electricity Contract Length: 5 Years Energy Broker Rate (Uplift): 0.4 p/kWh Annual Consumption: 764,894 Energy Broker Commission: £15,297.88

Total Combined Commission: £25,760.90

Business Energy Claims Claim Calculator

    Are you a victim of mis-selling?

    A significant number of UK businesses, forming part of the millions, utilise an energy broker to manage their commercial energy needs, serving as an intermediary between the business and the supplier.

    In instances where an energy broker has been employed, there may be instances of undisclosed commission embedded into your energy contracts, without clear communication or explanation.

    It is a legal requirement for energy brokers to disclose any commissions earned, however, there have been numerous instances over time where misleading information has been provided or financial incentives have been concealed.

    Over nine-tenths of businesses we have consulted have made use of an energy broker, and the average claim we manage is in excess of £25,000, with some businesses having rightful claims amounting to millions of pounds in energy compensation.

    We estimate that there could be more than 2 million businesses eligible for compensation, and our mission is to simplify and streamline your energy compensation claim process.

    What constitutes mis-selling by energy brokers?

    Has your energy broker been entirely upfront about the total commission they garnered from orchestrating your business contract?
    In our observations, a majority are not, and this generally stems from a valid reason.
    Brokers are well aware that complete disclosure would significantly diminish their commission earnings, as transparency might deter clients from signing contracts, especially if they realised a substantial portion of their bill was allocated to broker fees.

    You might have even been informed that the service was complimentary, or that the broker's commission was sourced from the supplier, described as an "introduction fee" or similar terminology. Commonly, brokers receive their commission directly from the supplier with whom they connect you, and this is incorporated into the unit price they negotiate on your behalf. Regrettably, this is often not disclosed to the client.

    Questions Answered

    A TPI is the acronym for ‘Third Party Intermediary’ – also known as energy brokers or energy consultants.

    Simply provide us with some details of the contracts that the broker(s) put in place for you, sign a letter of authority allowing us to engage with the broker(s) and supplier(s) and we will do the rest. We will write to the broker & suppliers to ascertain the value of your claim, and let you decide if you wish to launch a claim.In the event a claim is started, you will be required to co-operate with the solicitor at all times so that we can achieve a successful outcome. We will try to keep your involvement to as little as possible, and will use our expertise to gather all evidence with little to no interruption to yourself, although sometimes we will require your help.

    This really depends on a number of factors and it is difficult to say exactly how long your claim will take. We have had claims settle within two weeks and others may take a number of months.

    In some ways it is similar to PPI for the consumer market. This is for the non-domestic energy market and relates to gas and electricity bills only.

    We will complete the initial enquiries into your claim on a no obligation basis and at no cost to you. Once we have established whether you have a claim, to proceed you will need to sign an agreement setting out our Terms & Conditions, this will set out clearly our fees upon achieving a successful outcome.

    We take the case on in anticipation of a successful outcome, some people call these types of agreements “no-win, no-fee agreements”.

    In the event your claim is successful we will deduct our fee (set out clearly and explained to you in full when you begin your claim) from the compensation awarded.

    Many clients have a good relationship with their energy broker and this is understandable as you put your trust in them to get you a good deal for your energy. Often where this trust has been built up it results in the larger claims because brokers can take advantage of the trust you place in them.

    No, we are not an energy broker, we do not sell energy contracts.

    There are no figures on the scale of mis-selling in the industry, and certainly there are brokers who correctly review the market and describe the options accurately whilst demonstrating transparency over their fees with their clients. However, if your broker did not disclose to you how much they earned at the very least, they have not demonstrated transparency and you could have a claim.

    There are many ethical and transparent brokers in the market and not all are mis-selling or hiding their fees. However, our experience is that the vast majority of cases involve at least one area of mis-selling.

    Some brokers really do add value added services for your benefit, that’s good. However, if you don’t know with certainty how much you are being charged, you can’t make an informed decision about the additional services you may be receiving.

    Unfortunately, the supplier will probably not disclose this as the supplier and broker have an arrangement whereby the supplier must leave it to the broker to answer questions about commissions, we think this is wrong. It is also true that some suppliers rely heavily on the introductions they get from some brokers.

    You could, but if there’s not check in place to ensure you are told not just the truth, but given all the information you need to make an informed decision, then you can’t guarantee you are have information that is both correct and complete. We have experience of brokers giving both incomplete information and even actively misleading clients.

    There is a small chance you may have to. Only a small number of cases proceed all the way to court but if this happens, your solicitor will be there every step of the way to guide you.

    Contact Us

    Office are open, 9:30am to 4:30pm Monday to Friday, except bank holidays.

    Case Study

    21st July 2024

    Case Study: Business Energy Claim Recovery

    Background:

    A manufacturing business, mid-sized company located in Birmingham, had been using the same energy broker for five years to manage their business energy contracts. They had always trusted that their broker was obtaining the best possible deals on their behalf. However, after noticing irregularities in their energy bills, they decided to seek a second opinion.

    Challenge:

    The main challenge was to determine whether the business had been overpaying on its energy contracts due to hidden fees or mis-sold contracts. They approached HMEC Online to thoroughly review their past and present energy contracts and bills to identify any irregularities and pursue a business energy claim if necessary.

    Solution:

    Our team of experts at HMEC meticulously analysed the energy contracts and bills over the past five years. We found several instances where the business had been charged hidden broker fees that were built into their energy rates, which had not been clearly disclosed by their energy broker.

    After a careful review, it was clear that the business was entitled to make a substantial business energy claim due to the mis-sold contracts and hidden fees.

    Results:

    HMEC helped the Manufacturing business file a business energy claim, which resulted in a significant refund of over £50,000. This case served as a wake-up call for the business, which has since been more diligent in reviewing its energy contracts and ensuring transparency from its broker.

    In addition to the financial recovery, the case also resulted in substantial long-term savings for the business, as they are now more aware of the potential for hidden fees and can ensure they are getting the most cost-effective energy contracts.

    Conclusion:

    This case study demonstrates how important it is for businesses to review their energy contracts and understand all the charges they are paying. If in doubt, seeking expert help can result in significant savings and refunds. HMEC Online is dedicated to helping businesses make successful business energy claims and ensuring they are not overpaying on their energy contracts.

    Calculate Business Energy Claim »

    Contact HMEC Online now »

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