Businesses in the UK are owed billions of pounds through mis-sold energy contracts.
If you have ever used a broker or intermediary to find you the “best” deal for your business, it is possible you may be paying more than you should due to hidden commissions placed into your agreements by your broker. Energy brokers /consultants assist businesses by offering them gas and electricity contracts from energy suppliers.
Whilst not all brokers are guilty of mis-selling, a large percentage make misleading statements about how they are paid, why they are recommending certain deals or suppliers, and this is often driven by financial motives meaning that clients’ needs are rarely the focus of the deal. If the commission structure was not made absolutely clear to you in writing then you may be entitled to a refund of the commission paid + interest. Due to these hidden commissions, the relationship is deemed to be unfair.
Example: Your broker will generally get better deals than if you went direct to a provider, as the provider will also try to add as much of a margin as possible to generate profits. Working with a broker they will offer their best price which gives the broker the knowledge at where they can set their commission levels, so you will often save money! Good deal? Not really, you could be paying thousands extra in commission payments.
Commission disclosure is broken down into 3 levels: