A report found that businesses of all sizes across the UK could have been mis-sold billions in incorrectly offered energy contracts that hid commission from the consumer.

Many thousands of UK businesses may be entitled to compensation from their supplier after being duped into buying their commercial energy contracts. The way the contracts were sold is to blame for this.

You might be paying a hidden commission each month if your company employs an energy broker or consultant, also referred to as third-party intermediaries or TPIs.

Why would there be hidden charges in my energy bills?

Commission is a payment made by energy suppliers to third-party intermediaries such as brokers or energy consultants for introducing new customers or for managing their accounts. The commission is usually a percentage of the customer’s energy spend, and it varies depending on the agreement between the energy supplier and the intermediary.

Energy suppliers use third party intermediaries (TPIs) to reach more customers and to manage their accounts more efficiently. The intermediaries, in turn, can offer their services to customers for free or for a fee, depending on their business model – The issue comes when someone has used an energy broker and there is undisclosed commission that falls on you as the purchaser.

If you have used an intermediary to help you find and switch to a new energy supplier, it’s likely that they received a commission from the supplier. However, some intermediaries may charge a separate fee for their services that is more clear in your energy claim.

If the TPI concealed their potential earnings from this introduction to the energy provider, it would be fraud, and your business may be entitled to compensation. The majority of the time, it is a little more convoluted than this, and the TPI is concealing commission. TPIs frequently inform the companies that they work under a “introducers fee.
For good reason, they also keep their commission a secret. These false claims about the way energy brokers are compensated are frequently motivated by financial considerations for them, not by considerations for you.

Typically, TPIs got commission from the energy provider directly, and the fee was factored into the unit price they were offering. It follows that you might have to pay commission on a monthly basis, and this could add up over time.

It’s important to note that not all energy suppliers use intermediaries, and it’s possible to find and switch to a new energy supplier without using one. You can use online comparison websites or contact energy suppliers directly to find out about their tariffs and deals.

What can I do if I find that I have paid hidden commission on my business energy contract?

If you have been mis-sold any amount of commission on your energy, you may have a claim to have the commission amounts returned to you. If you have discovered hidden commission on your energy account, it can be a frustrating and concerning experience. However, it’s essential to take action to address the issue promptly. The first step is to contact your energy supplier and request a breakdown of all the charges applied to your account. You should also ask for an explanation of any fees that you don’t recognize or understand. If the energy supplier cannot provide a satisfactory response, you may want to consider filing a complaint with the energy ombudsman, who can investigate and help resolve the issue. Taking these steps can help ensure that you are not being unfairly charged for commission fees and can help you get a better understanding of your energy costs.

The UK energy market is regulated by Ofgem, which sets out clear rules on how energy companies must disclose any fees or charges they apply.

If an energy company is found to be hiding commission fees or any other charges, they could face regulatory action and fines. Therefore, it is in their best interest to be transparent about any fees they apply.

How can I start a business energy claim and find out what I could be owed?

According to estimates, 50% of UK corporations utilise brokers to negotiate their commercial energy contracts. Energy Problems is on your side if you’re one of them and feel like you’re paying an unfair concealed commission.

The emerging scandal of hidden commission in the business sector has plagued many in the business energy sector. Over time, the cost of commission alone adds up and means that you may be able to make a claim for reimbursement on gas and electricity. Here are our steps to help you get started:

1. Gather evidence: Collect any documents related to your energy account, such as bills, contracts, and correspondence with your energy supplier or intermediary. This will help you build a case and demonstrate that you have been overcharged.
2. Contact your energy supplier or intermediary: Reach out to your energy supplier or intermediary and explain your concerns. Provide them with the evidence you have gathered and ask them to investigate the matter.
3. Follow up: If you do not receive a satisfactory response from your energy supplier or intermediary, follow up with them to request an update on the investigation.
4. File a complaint: If you are still not satisfied, you can file a complaint with the energy ombudsman, who can investigate the matter and help resolve the issue.
5. Seek legal advice: If your claim is complex, you may want to consider seeking legal advice from a solicitor who specializes in energy claims. They can provide you with guidance on your legal rights and options.

It’s important to note that the process for making an energy claim can vary depending on the specific circumstances of your case. However, by following these general steps, you can take action to recover any overpaid commission fees and ensure that you are not being unfairly charged for your energy supply.

The average claim range for people who didn’t consent to the commission fees on their energy accounts can vary widely depending on the specific circumstances of their case. The amount of commission paid can be influenced by factors such as the size of the customer’s energy account, the length of the contract, the commission rates agreed between the energy supplier and intermediary, and the number of intermediaries involved in the contract.

It’s important to note that brokers aren’t able to give everyone financial compensation, and the amount of compensation awarded can vary. In some cases, customers may receive a refund for the overpaid fees, while in other cases, they may receive a discount on their future energy bills.

If you are considering making an energy claim to recover overpaid commission fees, you should seek legal advice to help you understand your legal rights and options. A solicitor specializing in energy claims can help you assess the merits of your case and provide you with guidance on the potential compensation you may be entitled to receive.