Member Article

Small Business Saturday energy mis-selling warning

An energy market expert is using Small Business Saturday (4th December 2021) to war businesses to be alert to the issues of energy mis-selling.

Callum Thompson, managing director of Business Energy Claims, believes the number of small businesses which may be entitled to recover the hidden commission received by their energy broker is huge.

To date, Business Energy Claims has identified claims totalling in the tens of millions of pounds across many different sectors.

He said: “Typically, most brokers receive their commission directly from the supplier and it is built into the unit price they arrange. Often, this is not disclosed to the customer.

“For a small business this can significantly increase overheads and we know from our clients across many different sectors that many have fallen victim to disreputable energy selling practices.

“We work with clients to secure redress, and this can lead to a significant pay-out. Energy brokers and suppliers need to realise that it is not acceptable to hide the commission paid and received, which is one of the most commons ways of mis-selling.

“Wholesale prices are rising very quickly making it even more important that businesses are aware of exactly what they are signing up to and how much they are actually paying for their energy, as opposed to undisclosed costs.

“Small businesses are the mainstay of the economy, and it is wrong that they may be paying far more for their energy that necessary.”

The energy market is complex, with over 2,000 brokers selling energy solutions to businesses. Within that market the company has discovered a significant number of examples of hidden charges and different forms of mis-selling. The key areas of mis-selling by energy brokers are:

• Hidden commission fees • Favouring suppliers offering brokers the best incentives • Selling contracts with the best incentives • Misrepresentation – claims regarding number of suppliers searched for ‘best price’ • Negligence – failure to take sufficient care in advice • Serious misconduct such as creating fabricated supplier rates (to favour the broker’s preferred choice), fictional price comparisons, agreeing contracts without the consumer’s consent.

This was posted in Bdaily's Members' News section by News Gathering .